Resources Flashcards
How are scarce resources allocated?
- Price system
- Rationing, via vouchers
- Queuing system
What are free goods?
Goods are so abundant that there is no price for them
What are economic goods?
Scarce goods that are allocated by the truce system or 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
Man made 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 type of production are there?
- Goods
- 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 + wants
Renewable resources
Natural resources that will replenish in 100 yrs
Non-renewable resources?
Natural resources that will not replenish when used e.g oil coal gold
What are you called when you are buying something or spending money?
A consumer
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 the task to improve productivity and 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 one specific type of production - Farming
- Fishing
- Constitution
What is the benefit of division of labour/specialisation?
More goods and services
higher production and efficiency
higher 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 other people for your needs or wants but they do not rely on you, e.g baby and mother
What is interdependent?
When you rely on someone and they rely on you to get the money, needs + wants
What can a surplus be used for?
- saving
- trading
- more leisure
