Resources

Question 1

What are free goods?

Answer 1

Goods so abundant that there is NO scarcity. They have NO price.

Question 2

What are economic goods?

Answer 2

Scarce goods that have a price.

Question 3

How are economic goods allocated?

Answer 3

The price system (90%)
Rationing-vouchers
Queuing- First in first served

Question 4

How do we know an economic good is very scarce?

Answer 4

The price is very high!

Question 5

What are the Resources of an economy?

Answer 5

Land
Labour
Capital
Entrepreneurship

Question 6

Define Land

Answer 6

Raw materials used in production and a gift of nature.

Question 7

Define Labour

Answer 7

Human effort in production of goods and services.

Question 8

Define Final Goods

Answer 8

Consumer goods available for consumption for needs and wants.

Question 9

Define Durable Consumer goods?

Answer 9

Consumer goods that last for a long time. e.g. Car, House etc.

Question 10

Define Non-durable consumer goods?

Answer 10

Consumer goods that are used up immediately. e.g. food, drinks, etc.

Question 11

Types of production?

Answer 11

Goods:Capital, Consumer
Services:Business, Consumer

Question 12

Renewable Resources?

Answer 12

Raw Materials that cannot be replaced or replenished

• Oil
• Gold
• Silver

Question 13

What is a Subsistence society?

Answer 13

Everybody is independent working to stay at the same point as before and no surplus.

Question 14

What is independence?

Answer 14

You rely on yourself and do not rely on others.

Question 15

What is specialisation?

Answer 15

Individuals concentrating on a specific task. To become an expert at it.

Question 16

What is division of labour?

Answer 16

Breaking down the production process into smaller tasks so a worker becomes a specialist.

Question 17

What is Division of Labour by Product?

Answer 17

Individuals concentrating on producing a specific good or service.

Question 18

What is a benefit of specialisation?

Answer 18

Gained more means.

Higher quality goods and services more effectively.

Question 19

What is Interdependence?

Answer 19

A situation where you rely on others and they rely on you for success.

Question 20

What is dependence?

Answer 20

You rely on others and they do NOT rely on you e.g. baby and mother.

Question 21

What is a disadvantage of Specialisation?

Answer 21

Interdependence, Boring(repetitive) and Your skill may not be wanted.

Question 22

What is division of labour by process?

Answer 22

Where individuals breakdown the production of a product or service into smaller tasks and specialise at that task.`

Question 23

Advantages of Division of Labour by Process?

Answer 23

More efficiency, a bigger surplus then before, more productivity, surpluses are now able to be traded and imports/exports.

Question 24

What is the three major innovations to improve surpluses in economy?

Answer 24

Mechanisation, division of labour by product and Division of labour by process