Resources

Question 1

How are Scarce Resources allocated?

Answer 1

Price system,(90%) Rationing- via vouchers, Queuing system-first in first served

Question 2

What are Free Goods?

Answer 2

Goods so abuntant that there is no price for them

Question 3

What are Economic goods?

Answer 3

Scarce Goods that are allocated by the Price System or Rationing or Queuing

Question 4

What 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 assit 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 types 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 and non durable goods

Question 14

Define Consumer goods?

Answer 14

Goods to assit consumers satisfaction for needs and wants.

Question 15

What is a Subsistence economy?

Answer 15

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

Question 16

What is Independent?

Answer 16

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

Question 17

What is Specialisation?

Answer 17

Individuals concentrating on ONE task to improve productivity and efficiency

Question 18

What is Division of Labour?

Answer 18

Breaking down the production process into small TASKS

Question 19

What is Division of Labour by Product?

Answer 19

Breaking the labour to concentrate on 1 specific type of production1)Farming,2) Fishing 3)Construction

Question 20

What is the benefit of Division of Labour/ Specialisation?

Answer 20

1)More goods and services, 2) Higher production and efficiency3) Higher quality4)Greater surplus.

Question 21

What methods can producers use to increase surplus of production?

Answer 21

Division of Labour by Product, Division of Labour by Process,Mechanisation.

Question 22

What is a disadvantage of Specialisation?

Answer 22

You become interdependent. Can be boring or repetitive.

Question 23

What is Dependance?

Answer 23

Where you are reliant on other people for your needs and wants, but they do rely on you. e.g baby

Question 24

What is Interdependence?

Answer 24

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

Question 25

What can a surplus be used for?

Answer 25

Saving, Trading and more Leisure

Time