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

Price System ( 90 % )
Rationing - Vouchers
Queueing - 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

Labour, Capital, Entrepreneurship, Land

Question 6

Define Land

Answer 6

Land are raw materials used in production and a gift of nature

Question 7

Define Labour

Answer 7

It is a human effort in production of goods + services.

Question 8

Define Capital

Answer 8

Man Made equipment used to produce goods+ services.

Question 9

Define Entrepreneurship

Answer 9

The person(s) who take the risk of organising the other factors of production to achieve a profit.

Question 10

What are other names for factors of production ?

Answer 10

Inputs

Resources

Question 11

Define Final Goods

Answer 11

Consumer goods available for consumption for needs + wants.

Question 12

Define Durable Consumer Goods

Answer 12

Consumer goods that last for a long time

• car
• houses

Question 13

Define non-durable consumer goods

Answer 13

Consumer goods that are used up immediately

• food
• lollies
• cigarettes

Question 14

What are the types of production ?

Answer 14

Goods - Capital & Consumer

Services - Consumer & Business

Question 15

What are Renewable Resources ?

Answer 15

Replaced or Replenished within 100 years

- trees

Question 16

What are NON Renewable Resources ?

Answer 16

Raw materials that cannot be replaced or replenished.

• Oil
• Gold
• Silver

Question 17

What are positive goods ?

Answer 17

Positive goods are beneficial to society, e.g fresh air, medicine.

Question 18

What are negative goods ?

Answer 18

Negative goods are a cost to society, e.g waste products that pollute rivers so the water cannot be used for drinking or water sports.

Question 19

What is the payment for land ?

Answer 19

The payment of land is Rent.

Question 20

What is the payment for capital ?

Answer 20

The payment for capital is Interest.

Question 21

What is the payment for labour ?

Answer 21

The payment for labour is Wages.

Question 22

What is the payment for entrepreneurship ?

Answer 22

The payment for entrepreneurship is Profit

Question 23

What is a Subsistance Society ?

Answer 23

Everybody is independently working to stay at the same point as before. No surplus.

Question 24

What is Independence ?

Answer 24

You rely on yourself and do not rely on others.

Question 25

What is Specialisation ?

Answer 25

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

Question 26

What s Division of Labour ?

Answer 26

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

Question 27

What is Division of Labour by Product ?

Answer 27

Individuals concentrating on producing a specific good or service.

Question 28

What is a benefit of specialisation ?

Answer 28

You gain more means - time | - skill. Higher quality goods + services more efficiently / faster. A surplus can be created for trading.

Question 29

What is Interdependence ?

Answer 29

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

Question 30

What is dependence ?

Answer 30

You rely on others and they do not rely on you e.g. Baby + Mother.

Question 31

What is a disadvantage of specialisation ?

Answer 31

- Interdependence. - Boring - Repetitive. - Your skill may not be wanted in the future.

Question 32

What is division of labour by Process ?

Answer 32

Where individuals break down the production of a product or service into smaller tasks + specialise at that task.

Question 33

Advantages of Division of Labour by Process ?

Answer 33

- More efficiency. - A bigger surplus than before. - More productivity. - Surpluses were now able to be traded Imports/Exports.

Question 34

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

Answer 34

- Mechanisation - Division of Labour by product - Division of Labour by process