Lesson+07

Lesson 7 - Producers in a Private Enterprise System

Important Terms for this Lesson: • supply – a relationship between the quantity of a product that producers are willing and able to provide and the price • demand – a relationship between the quantity of a product consumers are willing and able to purchase and the price • scarcity-the result of unlimited wants and needs combined with limited resources • controlled economy-an economic system where the government attempts to own and control important resources and to make the decisions about what will be produced and consumed • free economy-an economic system in which resources are owned by individuals and decisions are made independently with no attempt at government regulation or control • mixed economy-an economic system in which some goods and services are provided by the government and some by private enterprise • private enterprise-an economic system based on independent decisions by businesses and consumers with only a limited government role regulating those relationships • profit motive-the use of resources toward the greatest profit for the producer regulating those relationships • value-an individual view of the worth of a product or service • extraction and cultivation-the developing and/or removal of raw goods for processing • processing-changing and improving the form of another product • manufacturing-combining raw materials and processed goods into finished products • mass production-an assembly process that makes a large number of identical products using a continuous efficient procedure • custom manufacturing-building a specific and unique product to meet the needs of one customer • materials processing-changing the form of raw materials so they can be consumed or used to make other products ||
 * • producers – persons who facilitate everything that happens after the client agrees to develop an ad or campaign

Lesson Summary
 * **Q:** How does a manufacturer differ from an extractor?
 * A:** The extractor takes resources from nature for direct consumption or for use in developing other products. Manufacturers get supplies from other producers and convert them into products.
 * Q:** What are the three forms of production?
 * A:** The three forms of production are extraction and cultivation, processing, and manufacturing.
 * Q:** What is intermittent processing?
 * A:** Intermittent processing uses short production runs to produce a precise amount of a variation of a product.
 * Q:** What is custom manufacturing?
 * A:** Custom manufacturing involves building a specific and unique product to meet the needs of one consumer.
 * Q:** What is the fasting growing type of business?
 * A:** Service businesses are the fastest growing category.
 * Q**: What is manufacturing?
 * A:** Manufacturing combines raw materials and processed goods into finished products.
 * Q:** Why would the processing of textbooks be an intermittent process?
 * A:** Books would be produced as dictated by the flow of orders. ||