Limited Resources Flashcards
1
Q
Some points Limited Resources (The need to chose)
A
- We have limited resources but have so many wants
- We must make decisions everyday about different things
- We make choices that will give us more satisfaction
Therefore we will give something up which leads to opportunity cost
2
Q
What is opportunity cost
A
A benefit, profit, or value of something that must be given up to acquire or achieve something else.
3
Q
What is specialisation
A
The concentration on the production of a particular good or service or a small range of similar products
4
Q
Specialisation generally leads to more…
A
efficiency
5
Q
Specialisation helps us focus on…
A
What resources that are available and which we can make the best use of
6
Q
Within businesses how many forms can specialization take and what are they
A
2 forms
Individuals & departments
7
Q
What is division of Labour
A
Is when the production process is split into different tasks and each worker performs one of these tasks
