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

Scarse goods that have a price

Question 3

How are Economic are allocated

Answer 3

Price system [90%]
Rationing vouchers
Queuing-first in first served

Question 4

How do we know 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

Question 6

Define land

Answer 6

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

Question 7

Define labour

Answer 7

Human effort in production of goods and service

Question 8

Define capital goods

Answer 8

Man made equipment used to produce goods and service

Question 9

Entrepreneurship

Answer 9

The persons who take the risk of organising the other factors of production to achieve a profit

Question 10

Final goods

Answer 10

Consumer goods available for consumption for needs and wants

Question 11

Define durable consumer goods

Answer 11

Consumer goods that last for a long time e.g car house

Question 12

Define non consumer goods

Answer 12

Consumer goods that are used up imediatly e.g food, lollies

Question 13

Types of production

Answer 13

Goods- capital ,consumer. Services-business , consumers

Question 14

What are renewable resources

Answer 14

Replaced or replenished within 100 years e.g trees

Question 15

What are other names for factors of production

Answer 15

Inputs -resources

Question 16

What are positive goods?

Answer 16

benefical to society e.g fresh air, medicine

Question 17

what are negative goods?

Answer 17

cost to society e.g waste products that pollute rivers

Question 18

what is the payment for capital?

Answer 18

interest

Question 19

What is the payment for labour?

Answer 19

wages

Question 20

What is the payment for entrepreneurship?

Answer 20

profit

Question 21

What is the payment of land?

Answer 21

Rent

Question 22

What is a subsistence society

Answer 22

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

Question 23

What is independence

Answer 23

you rely on yourself and do not rely on others

Question 24

what is specialisation?

Answer 24

individuals consentrating on specific task to become a expert at it.

Question 25

What is division of labour

Answer 25

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

Question 26

what is division of labour by product?

Answer 26

individuals work on producing a specific good for service

Question 27

What is a benefit of specialisation

Answer 27

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

Question 28

what is interdependence?

Answer 28

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

Question 29

what is dependence?

Answer 29

you rely on others and they don’t rely on you e.g baby/mother.

Question 30

what is a disadvantage of specialisation

Answer 30

interdependence
boring/receptive
you skill may not be wanted in future

Question 31

what is division of labour by process

Answer 31

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

Question 32

advantages of division of labour by process

Answer 32

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

Question 33

what is the three mayor innovations to improve surpluses in economy.

Answer 33

mechanisation
Division of labour by product
Divion of labour by process