Resources Flashcards
How are Scarce Resources allocated
The Price system
Rationing-via vouchers
Queueing System-first in first served
What are free goods
Goods so abundant that there is no price for them
What are Economic Goods
Scarce goods that are allocated by the price system, rationing or queuing.
What happens if goods are really scarce
The price rises
What are the resources
Land, Labour, Capital, Entrepreneurship
Define Land
Raw Materials supplied by nature
Define Labour
Human resources or Human effort
Define Capital
Manmade resources used to assist production
Define Entrepreneurship
The person who takes the risk of organising 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 type of consumer goods are there
Durable goods
Non durable goods
Define consumer goods
Goods to assist consumers satisfaction for needs and wants
What are Renewable Resources
Natural resources that will replenish in 100 years.
What are Non-Renewable resources?
Natural resources that will not replenish when used eg oil, coal, gold
What are positive and negative goods
Positive goods are benificial to society and negative goods aren’t beneficial to society
What are Goods
Objects with a physical precense
What are Services
Things that people do for you
The Payment for Land
Rent
The Payment for Labour
Wages
The Payment for Capital
Interest
The Payment for the Entrepreneur
Profit
What is a producer
Someone who makes goods or services
What is a consumer
Someone who pays for the Goods or Services created by the producer.
What is Interdependent
Relying on someone and them relying on you for your needs and wants.
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 specialisation
Individuals concentrating on one task to improve productivity + efficiency
What is Division of Labour
Breaking down the production process into small tasks
What is Division of Labour by Product
Breaking the labour to concentrate on 1 specific type of production.
- Farming
- Fishing
- Construction
What is the benefit of Division of Labour/Specialisation
- More Goods and Services
- Higher Production + Efficiency
- Better Quality
- Greater Surplus
What methods can producers use to increase surplus of production
Division of Labour by product
Division of Labour by process
Mechanisation
What is a disadvantage of specialisation
You become Interdependent
Can be boring or repetitive
What is Dependence
Where you are reliant on others for your needs and wants but they do not rely on you e.g. baby + mother.
What can surplus be used for
- Saving
- Trading
- More Leisure
