resources Flashcards
What are free goods
Goods so abundant that there is no scarcity, they have no price
What are economic goods
scarce goods that have a price
How are economic goods allocated
the price system (90%)
rationing-voucher
queuing-first in first served
How do we know an economic good is very scarce
The price is very high
What are the resources of an economy
land,labour,capital,entrepreneurship,
Define land
Raw materials used in production and a gift of nature
Define labour
A human effort in production of goods + service
Define Capital
Man made equipment used to produce goods + services
Define entrepreneurship
The person(s) who take the desk of organising the other factors of production to achieve a profit
Define final goods
consumer goods available for consumption for needs + wants
Define non-durable consumer goods
consumer goods that are used up immediately e.g. food,cigarets
What are the types of production
goods=capital-consumers
services= buisnes-consumer
What are renewable resources
Replaced or replenished within 100 years.
e.g trees,people,entrepreneurs
What are non renewable resources
Raw materials that cannot be replaced or replenished
- oil
- gold
- silver
What is a subsistence society
- Everybody is independent
- working to stay at the same point as before
- there is no surplus
What is independent
No one looks after you
What is specialisation
Individuals concentrating on a specific task to become an expert at it
What is division of labour
Breaking down the production of process into smaller tasks so a worker becomes a specialist
What is division of labour by product
Individuals concentration on producing a specific good or service
What is a benefit of specialisation
Gain more means - time,skill
Higher quality goods + services more efficiently/ faster
A surplus can be created for trading
What is dependence
You rely on others and they do not rely on you e.g mothers + baby
What is interdependence
A situation where you rely on others + they rely on you for success/survival
What is a disadvantage of specialisation
- interdependence
- boring-repetitive
- Your skill may not be wanted in future
What is division of labour by process
Where individuals brake down the production of a product or service into smaller task and specialise at that task
What is the three mayor innovations to improve surplus in economy
- Mechanisation
- division of labour by product
- division of labour by process
