Resources Flashcards
What are free goods?
Goods so abundant that there is no scarcity. They have no price
What are Economic goods?
Scarse goods that have a price
How are Economic are allocated
Price system [90%]
Rationing vouchers
Queuing-first in first served
How do we know economic good is very scarce?
The price is high
What are the resources of an economy
labour,capital,entrepreneurship
Define land
They are raw materials used in production and a gift of nature
Define labour
Human effort in production of goods and service
Define capital goods
Man made equipment used to produce goods and service
Entrepreneurship
The persons who take the risk of organising the other factors of production to achieve a profit
Final goods
Consumer goods available for consumption for needs and wants
Define durable consumer goods
Consumer goods that last for a long time e.g car house
Define non consumer goods
Consumer goods that are used up imediatly e.g food, lollies
Types of production
Goods- capital ,consumer. Services-business , consumers
What are renewable resources
Replaced or replenished within 100 years e.g trees
What are other names for factors of production
Inputs -resources
What are positive goods?
benefical to society e.g fresh air, medicine
what are negative goods?
cost to society e.g waste products that pollute rivers
what is the payment for capital?
interest
What is the payment for labour?
wages
What is the payment for entrepreneurship?
profit
What is the payment of land?
Rent
What is a subsistence society
everybody is independent working to stay at the same point as before and no surplus
What is independence
you rely on yourself and do not rely on others
what is specialisation?
individuals consentrating on specific task to become a expert at it.
