4.1.1.3 economic resources

Question 1

what are the four factors of production?

Answer 1

1) land

2) labour

3) capital

4) enterprise

Question 2

what is land
and what does it contain?

Answer 2

• the stock of raw materials

contains:
- non-renewable resources like gas, oil, coal
- renewable resources like water, wind, tidal power, wood
- materials extracted by mining like gold and diamonds
- water and animals

Question 3

what are sustainable resources?

Answer 3

renewable resources that are being used economically such that they won’t diminish or run out

eg) forests are renewable, they’re only also sustainable if not cleared for agriculture

Question 4

what are non-sustainable resources?

Answer 4

renewable resources that are diminishing over time due to economic exploitation

eg) Brazilian rainforests

Question 5

what are renewable resources?

Answer 5

can be used and replaced

eg) water, fish stocks, forests

Question 6

what are non-renewable resources?

Answer 6

will not be replaced

eg) coal, oil, gold, copper

Question 7

nearly all things that fall under LAND are scarce
what does this mean?

Answer 7

• there aren’t enough to satisfy demands
• the environment is a scarce resource
• one expectation is air

Question 8

what is labour?

Answer 8

• is the workforce of an economy
• each worker has a unique set of characteristics
• their value to the economy is called their human capital
  -> can be enhanced through education and training (increasing their productivity)

Question 9

what is capital?

Answer 9

• the manufactured stock of resources used in the production of goods and services
• is made first, before land
• can be further divided into:
  -> working capital
  -> fixed capital
• most of an economy’s capital is paid for by the government

Question 10

what is working capital?

Answer 10

stock of:
- raw materials
- semi-manufactured and finished goods
waiting in the production process to be sold to the consumer