Resources Flashcards
to learn eco lel
What are free goods?
Goods so abundant that there is NO scarcity. They have no price.
What are economic goods?
They are scarce goods that have a price.
How are economic goods allocated?
The price system (90%).
Rationing - vouchers.
Queuing - First in, first served.
How do we know an Economic good is very scarce?
The price is 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”
It is a human effort in production of goods and services
Define “Capital”
Man-Made equipment used to produce goods + services
Define “Entrepreneurship”
The person(s) who take the risk of organising the other factors of production to achieve a profit
What are the other names for factors of production?
- Inputs
- Resources
Define Final Goods
Consumer goods available for consumption
Define Durable Consumer Goods
Consumer goods that last for a long time e.g Car, House. Given we look after those things.
What are the types of production?
Goods - capital & consumer
Services - consumer & business
What are Renewable Resources?
Replaced or replenished within 100 years. e.g. Trees
What are positive goods?
Positive goods are beneficial to society e.g. Fresh Air, Medicine.
What are negative goods?
Negative goods are a cost to society. E.g. Waste products that pollute rivers so the water cannot be used for drinking or sports.
What is the payment for land?
Rent
What is the payment for capital?
Interest
What is the payment for labour
Wages
What is the payment for entrepreneurship?
Profit
What is a subsistence society?
A society in which everybody is independent. Working to stay at the same place as before.
No surplus.
What is dependance?
You rely on yourself and do not rely on others.
What is Specialisation?
Individuals concentrating on a specific task.
What is Division of Labour?
Breaking down the production process into smaller tasks so a worker becomes a specialist.
