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

• Labour
• Capital
• Entrepreneurship
• Land

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

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 eg - car, house

Question 13

Define non - durable consumer goods

Answer 13

Consumer Goods that are used up immediately

Question 14

What are the types of Production?

Answer 14

Goods - capital
- consumers

Services - business
- consumers

Question 15

What are the types of Production?

Answer 15

Goods - captial
- consumers

Services - business
- consumers

Question 16

What are renewable resources?

Answer 16

Replaced or replenished within 100 years - trees

Question 17

What are Non renewable resources?

Answer 17

Raw materials that cannot be replaced or replenished, oil, gold, silver

Question 18

What are positive Goods?

Answer 18

Goods that are beneficial for the society?

Question 19

What are negative Goods?

Answer 19

Goods that are a cost of society?

Question 20

What is the payment for lands?

Answer 20

wages

Question 21

What is the payment for capital?

Answer 21

intrest

Question 22

What is the payment for labour?

Answer 22

wages

Question 23

What is the payment for entreprenurs?

Answer 23

profit

Question 24

What is a subsistence society?

Answer 24

Where Everybody is independent, working to stay at the same point as before. There is no surplus.

Question 25

What is independence?

Answer 25

When you rely on yourself and do NOT rely on others.

Question 26

What is specialisation?

Answer 26

Concentrating on a specific task to become an expert at it

Question 27

What is Division of Labour?

Answer 27

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

Question 28

What is Division of Labour by product?

Answer 28

Working on producing a specific good or service.

Question 29

What is a benefit of specialisation?

Answer 29

Gain more means - time, skill etc
Higher quality goods + services more efficiently
A surplus can be created for trading.

Question 30

What is interdependence?

Answer 30

A situation where people rely on others and not on themselves for success/survival

Question 31

What are some disadvantages 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

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

Question 33

Advantages of division of labour by process?

Answer 33

• more efficiency
• bigger surplus than before
• more productivity
• surpluses were now able to be traded imports/exports

Question 34

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

Answer 34

• mechanisation
• Division of labour by product
• Division of labour by process