Resources

Question 1

How are Scarce Resources allocated

Answer 1

The Price system
Rationing-via vouchers
Queueing System-first in first served

Question 2

What are free goods

Answer 2

Goods so abundant that there is no price for them

Question 3

What are Economic Goods

Answer 3

Scarce goods that are allocated by the price system, rationing or queuing.

Question 4

What happens if goods are really scarce

Answer 4

The price rises

Question 5

What are the resources

Answer 5

Land, Labour, Capital, Entrepreneurship

Question 6

Define Land

Answer 6

Raw Materials supplied by nature

Question 7

Define Labour

Answer 7

Human resources or Human effort

Question 8

Define Capital

Answer 8

Manmade resources used to assist production

Question 9

Define Entrepreneurship

Answer 9

The person who takes the risk of organising the other factors of production to achieve a profit from production

Question 10

What are other names for resources

Answer 10

Factors of production or Inputs to production

Question 11

What types of production are there

Answer 11

Goods and Services

Question 12

What type of goods are there

Answer 12

Consumer Goods

Capital Goods

Question 13

What type of consumer goods are there

Answer 13

Durable goods

Non durable goods

Question 14

Define consumer goods

Answer 14

Goods to assist consumers satisfaction for needs and wants

Question 15

What are Renewable Resources

Answer 15

Natural resources that will replenish in 100 years.

Question 16

What are Non-Renewable resources?

Answer 16

Natural resources that will not replenish when used eg oil, coal, gold

Question 17

What are positive and negative goods

Answer 17

Positive goods are benificial to society and negative goods aren’t beneficial to society

Question 18

What are Goods

Answer 18

Objects with a physical precense

Question 19

What are Services

Answer 19

Things that people do for you

Question 20

The Payment for Land

Answer 20

Rent

Question 21

The Payment for Labour

Answer 21

Wages

Question 22

The Payment for Capital

Answer 22

Interest

Question 23

The Payment for the Entrepreneur

Answer 23

Profit

Question 24

What is a producer

Answer 24

Someone who makes goods or services

Question 25

What is a consumer

Answer 25

Someone who pays for the Goods or Services created by the producer.

Question 26

What is Interdependent

Answer 26

Relying on someone and them relying on you for your needs and wants.

Question 27

What is a subsistence Economy

Answer 27

Everybody works independently just to maintain their current living standards.There is no surplus produced.

Question 28

What is independent

Answer 28

You rely on yourself for needs and wants. You do not rely on others

Question 29

What is specialisation

Answer 29

Individuals concentrating on one task to improve productivity + efficiency

Question 30

What is Division of Labour

Answer 30

Breaking down the production process into small tasks

Question 31

What is Division of Labour by Product

Answer 31

Breaking the labour to concentrate on 1 specific type of production.

• Farming
• Fishing
• Construction

Question 32

What is the benefit of Division of Labour/Specialisation

Answer 32

• More Goods and Services
• Higher Production + Efficiency
• Better Quality
• Greater Surplus

Question 33

What methods can producers use to increase surplus of production

Answer 33

Division of Labour by product
Division of Labour by process
Mechanisation

Question 34

What is a disadvantage of specialisation

Answer 34

You become Interdependent

Can be boring or repetitive

Question 35

What is Dependence

Answer 35

Where you are reliant on others for your needs and wants but they do not rely on you e.g. baby + mother.

Question 36

What can surplus be used for

Answer 36

• Saving
• Trading
• More Leisure