Resources

Question 1

How are scarce resources allocated?

Answer 1

• Price system
• Rationing, via vouchers
• Queuing system

Question 2

What are free goods?

Answer 2

Goods are so abundant that there is no price for them

Question 3

What are economic goods?

Answer 3

Scarce goods that are allocated by the truce system or 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

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 a profit from production

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

- 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 + wants

Question 15

Renewable resources

Answer 15

Natural resources that will replenish in 100 yrs

Question 16

Non-renewable resources?

Answer 16

Natural resources that will not replenish when used e.g oil coal gold

Question 17

What are you called when you are buying something or spending money?

Answer 17

A consumer

Question 18

What is a subsistence economy?

Answer 18

Everybody works independently just to maintain their current living standards, there is no surplus produced

Question 19

What is independent?

Answer 19

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

Question 20

What is specialisation?

Answer 20

Individuals concentrating on the task to improve productivity and efficiency

Question 21

What is division of labour?

Answer 21

Breaking down the production process into small tasks

Question 22

What is division of labour by product?

Answer 22

Breaking the labour to concentrate on one specific type of production - Farming

                           - Fishing 
                           - Constitution

Question 23

What is the benefit of division of labour/specialisation?

Answer 23

More goods and services
higher production and efficiency
higher quality
greater surplus

Question 24

What methods can producers use to increase surplus of production?

Answer 24

Division of labour by product
Division of labour by process
mechanisation

Question 25

What is a disadvantage of specialisation?

Answer 25

You become interdependent

Can be boring or repetitive

Question 26

What is dependence?

Answer 26

Where you are reliant on other people for your needs or wants but they do not rely on you, e.g baby and mother

Question 27

What is interdependent?

Answer 27

When you rely on someone and they rely on you to get the money, needs + wants

Question 28

What can a surplus be used for?

Answer 28

• saving
• trading
• more leisure