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 price

Question 3

How are economic goods allocated

Answer 3

• The price system (90%)
• Rationing (vouchers)
• Queuing, first in first served.

Question 4

How do we know an economic good is very scare?

Answer 4

The price is very good.

Question 5

What are the resources of an economy?

Answer 5

• Labour
• capital
• land
• entrepreneurship

Question 6

Define land

Answer 6

They are raw materials used in production and also it is a gift of nature.

Question 7

What are positive goods?

Answer 7

goods that are beneficial for the society

Question 8

What are negative goods?

Answer 8

are a cost of society

Question 9

What is the payment for land?

Answer 9

wages

Question 10

What is the payment for capital?

Answer 10

intrest

Question 11

what is the payment for labour?

Answer 11

wages

Question 12

what is the payment for entertainers?

Answer 12

profit

Question 13

What is a subsistence society?

Answer 13

Everybody is indépendant
working to stay at the same point as before
no surplace

Question 14

what is independence?

Answer 14

you rely on yourself and do not rely on others

Question 15

What is specialisation?

Answer 15

Where you concentrate on one job so you can become an expert at it.

Question 16

What is the division of labour?

Answer 16

Breaking down the production process into smaller tasks to a worker becomes an expert.

Question 17

What is division of labour by product?

Answer 17

Individuals concentrating on producing a specific good or service

Question 18

What is benefit of a specialisation?

Answer 18

Gain more means time skill
higher quality goods services more efficient faster
a surplace can be created fro trading

Question 19

What is interdependence?

Answer 19

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

Question 20

What is division of labour by process

Answer 20

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

Question 21

Advantage of division if labour by process

Answer 21

• More efficiency
• a bigger surplice than before
• more productivity
• trade started

Question 22

What is the three main innovations to improve surplice in economy

Answer 22

• mechanisation
• division of labour by product
• division of labour by process