Resources Flashcards
How are Scarce Resources allocated?
Price system,(90%) Rationing- via vouchers, Queuing system-first in first served
What are Free Goods?
Goods so abuntant that there is no price for them
What are Economic goods?
Scarce Goods that are allocated by the Price System or Rationing or Queuing
What 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 assit 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 types 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 and non durable goods
Define Consumer goods?
Goods to assit consumers satisfaction for needs and wants.
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 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 1 specific type of production1)Farming,2) Fishing 3)Construction
What is the benefit of Division of Labour/ Specialisation?
1)More goods and services, 2) Higher production and efficiency3) Higher quality4)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 Dependance?
Where you are reliant on other people for your needs and wants, but they do rely on you. e.g baby
What is Interdependence?
Where you rely on someone and they rely on you to get the needs and wants.
