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 goods allocated?

Answer 3

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 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 capital

Answer 8

man made equiptment used to produce goods and 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 finals goods

Answer 11

consumer goods available for consumption for needs and wants

Question 12

define durable consumer goods

Answer 12

consumer goods that last for a long time example, car, house

Question 13

define non durable consumer goods

Answer 13

consumer goods that are used up immediately, example, food, drink

Question 14

what are the types of production?

Answer 14

goods, services

Question 15

what are renewable resources?

Answer 15

goods that are replaced or replenished within 100 years example. 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 eg, fresh air ane medicine

Question 18

what are negative goods

Answer 18

negative goods are a cost to society eg. waste products that pollute rivers so the water can’t be used for drinking or sports

Question 19

what is the payment for land?

Answer 19

rent

Question 20

what is the payment for capital?

Answer 20

interest

Question 21

what is the payment for labour?

Answer 21

wages

Question 22

what is the payment for entrepreneurship?

Answer 22

profit

Question 23

what is a subsistence society?

Answer 23

• everybody is independent
• 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 and expert at it

Question 26

what is 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

-gain more means (time and skills)
-higher quality goods and services
more efficiency / 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 eg. baby and a mother

Question 31

what is a disadvantage of specialisation?

Answer 31

• interdependence
• boring- repetitive
• your skill may not be wanted in future

Question 32

what is division of labour by process

Answer 32

this is where individuals break down the production of a product or service into smaller tasks and specialise at that task

Question 33

advantages of division of labour

Answer 33

-more efficiency
-a bigger surplus
-more productivity
surpluses are now able to be traded. imports/exports

Question 34

what is the three major innvations to improve surplus in economy

Answer 34

mechanisation
division of labour by product
division of labour by process