Resources Flashcards
to do it
How are scars resources allocated ?
the price system
rationing - via vouchers
Queuing system - first in first served
What are free goods ?
Goods so abundant that there is no price for them.
What are economic goods ?
Scarse goods that are allocated by the price system, rationing or the Queuing system
What happens if the goods are really scarce ?
The price rises.
What are the resources ?
Land, Labour, Capital, Entrepreneurship
What is the definition of land ?
Raw materials supplied by nature.
Define Labour.
Human resources/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 & Inputs to production.
What types of production are there ?
Goods & Services
What types of goods are there ?
Consumer goods & Capital goods
What types of consumer goods are there ?
Durable & Non-Durable goods
Define consumer goods.
Goods to assist consumers satisfaction for nees and wants.
Define Services.
Services are things that are done for you, like having a haircut.
Services are intangible.
The payment for land.
Rent$$
The payment for labour.
Wages$$
The payment for capital.
Interest$$
The payment for the Entrepreneurship.
Profit$$
What are positive goods ?
Goods that are beneficial to society E.g. Fresh air, Medicine
What are negative goods ?
Goods that are a cost to society.
E.g. Pollution in a river stops swimmers & fishers
What is a producer ?
A person that makes goods.
What is a consumer ?
A person that uses 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 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 devision of labour ?
- More goods & services.
- Higher production & efficiency.
- Greater surplus.
- Higher quality.
