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
Price system (90%)
Rationing - Vouches
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
Human effort in production of goods & services.
Define Capital
Man made equipment used to produce goods & services.
Final Goods
Consumer goods available for consumption for needs & wants.
Define durable consumer goods
Consumer goods that last for a long time car,house
Define non-durable consumer goods
Consumer goods that are used up immediately e.g Food, lollies, drinks.
What are the types of production?
Goods: Capital, Consumer
Services: Business, Consumer
What are Renewable resource?
Replaced or replenished within 100 years e.g trees
What are non renewable resources?
Raw materials that cannot be replaced or replenished oil, gold, silver.
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 that water can not be used to drinking or water sports.
What is the payment of land?
Land is payed by rent.
What is the payment for capital?
Capital gets payed interest.
What is the payment for labour?
Labour gets payed a wage.
What is the payment for entrepreneurs?
Entrepreneurs get payed profit.
What is specialisation
Individuals concentrating on a specific task. To become an expert at it.
What is division of labour
Breaking down the PRODUCTION process. Into smaller TASKS so a worker becomes a SPECIALIST.
What is division of Labour by product
Individuals concentrating on producing a specific good or service.
What is a benefit of specialisation?
You gain more means - time and skill
Higher quality goods and services more efficiently/faster
A surplus can be created for trading
What is Interdependendence
A situation where you rely on others and they rely on you for success/survival.
What is dependence
You rely on others and they do not rely on you e.g. baby and mother.
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 break down the production of a product or service into smaller tasks and specialise at that task.
Advantages of division of Labour by process
More efficiency, a bigger surplus than before, more productivity.
What is the three major innovations to improve surpules in economy
Mechanisation, division of labour by product, division of labour by process.
