Resources

Question 1

How are the scarce resources allocated?

Answer 1

The price system.
Rationing.
Queueing.

Question 2

What are free goods?

Answer 2

Goods so abundant there is no price for them.

Question 3

What are economic goods?

Answer 3

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

Question 4

What happens when 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 Effort

Question 8

Define Capital.

Answer 8

Man made 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 profit.

Question 10

What are other names for resources?

Answer 10

Factors of production or input to production.

Question 11

What types of production are there?

Answer 11

Goods and services.

Question 12

What types of goods are there?

Answer 12

Consumer goods, Capital goods.

Question 13

What types of consumer goods are there?

Answer 13

Durable goods and non durable goods.

Question 14

What are renewable resources?

Answer 14

Natural resources that can be replenished.

Question 15

What are not renewable resources?

Answer 15

Natural resources that will not replenish.

Question 16

What is specialisation

Answer 16

Individuals concentrating on one task to improve productivity and efficiency.

Question 17

What is division of Labour

Answer 17

Breaking down production into small tasks.

Question 18

What are producers

Answer 18

The people or companies who provide the goods or services.

Question 19

What is the payment for land

Answer 19

Rent

Question 20

What is the payment for Labour

Answer 20

Wages

Question 21

What is the payment for capital

Answer 21

Interest/money

Question 22

What is the payment for entrepreneurship

Answer 22

profit

Question 23

What are goods

Answer 23

Objects with a physical presence

Question 24

What is a positive good

Answer 24

A good that is beneficial to society

Question 25

What is a negative good

Answer 25

A good that is harmful to society

Question 26

What is interdependence

Answer 26

When people depend on each other for goods and services.

Question 27

What is division of Labour by product

Answer 27

Breaking the labour up to concentrate on a specific type of production

Question 28

What is the benefit of division of labour/specialisation.

Answer 28

More goods and services, higher production and efficiency, better quality, more surplus.

Question 29

What are comsumers

Answer 29

People/companies who buy the goods

Question 30

What is subsistence economy

Answer 30

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

Question 31

What is independent

Answer 31

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

Question 32

What is specialization

Answer 32

Individuals concentrating on one task to improve productivity and efficiency.

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 are the disadvantages of division of labour.

Answer 34

You become interdependent.

Boring or repetitive.

Question 35

What is dependence.

Answer 35

When you are reliant on others.

Question 36

What is interdependence.

Answer 36

When you rely on someone and they rely on you for needs and wants.

Question 37

What can a surplus be used for.

Answer 37

Saving, trading, more leisure.