Resources Flashcards
How are scarce resources allocated?
The price system, Rationing, Queuing system (First in first served)
What are free goods?
Goods so abundant that there is no price.
What are economic goods?
Scarce goods that are allocated by the price system, rationing or queuing.
What happens if goods are scarce?
The price rises.
What are the resources?
Land, Labor, Capital, Entrepreneurship
Define Land
Raw materials, supplied by nature, for the production of goods and services,
Define Labor
Human Resources/ Human Effort used for the production of goods and services
Define Capital
Man- made resources used to assist the production of goods and services
Define Entrepreneurship
The person who takes the risk of organizing the other factors of production to achieve a profit from production.
What are other names for resources?
Factors of production or Inputs to production.
What types of production are there?
Goods and services
What type of goods are there?
Consumer goods, Capital goods
What types of consumer goods are there?
Durable goods, Non- durable goods
What are renewable resources?
Natural resources that will replenish in 100 years
What are non-renewable resources
Natural resources that will not replenish, e.g. oil gold and coal
What/who are producers
Producers are people/companies that provide our goods and services
What is the payment for land?
Rent
What is the payment for labor?
Wages
What is the payment for capital?
Interest (Money)
What is the payment for entrepreneurship?
Profit
What are goods?
Objects with a physical presence.
What is a positive good?
A good that is beneficial to society e.g. medicine.
What is a negative good?
A good that is harmful/ a cost to society e.g. pollutants
What is interdependence?
When people depend on each other for their needs and wants.
What are consumers?
People/ companies that buy goods.
What is a subsistence economy?
Everybody works independently just to maintain their current living standards.
There is no surplus produced.
What is independent?
You rely on yourself for needs and wants. You do not rely on others.
What is specialization?
Individuals concentrating on one task to improve productivity and efficiency.
What is division of Labor?
Breaking down the production process into small tasks.
What is division of labor by product?
Breaking the labor to concentrate on 1 specific type of production e.g.
Farming
Fishing
Construction
What is the benefit of division of labor/ specialization?
- More Goods and services.
- -Higher production & efficiency.
- –Better quality
- —Greater surplus
What methods can producers use to increase surplus and production.
Division of labor by product
Division of labor by process
Mechanisation
what is a disadvantage of specialisation
it can be boring or repetitive
you become interdependent
What is dependence?
When you are reliant on others for your needs and wants but they do not rely on you.
What is dependence?
When you are reliant on others for your needs and wants but they do not rely on you.
what is dependance
where you are reliant on others for your needs and wants
What can a surplus be used for?
Saving, Trading, More Leisure
