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
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 + 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

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
House

Question 13

Define non-durable consumer goods.

Answer 13

They are consumer goods that are used up quickly
eg. Food
Drinks
Lollies

Question 14

What are the types of production?

Answer 14

Goods: Capital. Consumer

Services: Business. Consumer

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 for society, eg. fresh air, medicine.

Question 18

What are negative goods?

Answer 18

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

Question 19

What is the payment for land?

Answer 19

Land is paid in rent.

Question 20

What is the payment for capital?

Answer 20

Capital goods are paid in interest.

Question 21

What is the payment for labour?

Answer 21

Labour gets paid a wage.

Question 22

What is the payment for entrepreneurs?

Answer 22

Entrepreneurs get paid profit.

Question 23

What is a subsistance society?

Answer 23

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

Question 24

What is independance?

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 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, skill
Higher quality goods+services more efficently/faster.
A surplus can be created for trading.

Question 29

What is dependence?

Answer 29

You rely on others and they do NOT rely on yourself eg. Baby + Mother

Question 30

What is Interdependence

Answer 30

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

Question 31

What is a disadvantage of specialisation

Answer 31

Interdepence
Boring
Your skill may not be wanted in 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.
More productivity.
Surpluses were now able to be traded.
Imports/Exports.

Question 34

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

Answer 34

Mechanisation
Division of labour by Product
Diviosn of labour by process