Resources

Question 1

How are Scarce Resources allocated?

Answer 1

Price System,
Rationing-via vouchers,
Queuing System- First in First Served

Question 2

What are Free Goods?

Answer 2

They are goods so abundant that there is no price for them.

Question 3

What are Economic Goods?

Answer 3

They are goods that are allocated by the price, rationing or queuing systems.

Question 4

What happens if goods are really scarce?

Answer 4

This price rises.

Question 5

What are the Resources?

Answer 5

Land, Labour, Capital and Entrepreneurship

Question 6

Define Land?

Answer 6

Raw Materials supplied by nature.

Question 7

Define Labour?

Answer 7

Human resources or human labour

Question 8

Define Capital?

Answer 8

Man Made resources used to assist production of good and services.

Question 9

Define Entrepreneurship?

Answer 9

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

Question 10

What are other names for Resources?

Answer 10

Factors of production or inputs to production

Question 11

What type of Production are there?

Answer 11

Goods and Services

Question 12

What types of Goods are there?

Answer 12

Consumer Goods and Capital Goods

Question 13

What type of Consumer goods are there?

Answer 13

Durable Goods and Non Durable Goods

Question 14

Define Consumer Goods?

Answer 14

Goods to assist consumers satisfaction for needs and wants.

Question 15

What is the payment for Land?

Answer 15

Rent.

Question 16

What is the payment for Labour?

Answer 16

Wages.

Question 17

What is the payment for Capital

Answer 17

Interest.

Question 18

What is the payment of Entrepreneurship?

Answer 18

Profit.

Question 19

What is a Positive Good?

Answer 19

Positive goods are beneficial to society

Question 20

What is a Negative Good?

Answer 20

Negative goods are a cost to society

Question 21

What are Renewable Resources?

Answer 21

Natural resources that will replenish after 100 years

Question 22

What are Non-Renewable?

Answer 22

Natural resources that will bot replenish when used. e.g. coal, oil, gold

Question 23

What is a Subsistence Economy?

Answer 23

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

Question 24

What is Independent?

Answer 24

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

Question 25

What Methods can producers use to increase surplus of production?

Answer 25

• Division of Labour by product
• Division of Labour by process
• Mechanisation

Question 26

What is a Disadvantage of Specialisation?

Answer 26

• You become interdependent

- Can be boring or repetitive

Question 27

What is Dependence?

Answer 27

Where you are reliant on others for your needs and wants. But they don’t rely on you.

Question 28

What is Interdependent?

Answer 28

Why you rely on someone and they rely on you to get the needs and wants.

Question 29

What can a surplus be used for?

Answer 29

• Storage
• Trading
• More Leisure