Resources Flashcards
What are free goods
Goods so abundant that there is no scarcity they have no price.
What are economic goods
they are scare goods that have a price.
how are economic goods allocated
The price (90%)
A voucher Rationing
Queuing - first in first serve
How do we now an economic good is scare
the price is high
what are the resources of an economy
Labour, capital, land, entrepreneurship
Define land this one
Raw materials used in production of a gift of nature
define labour this one
It is human effort in production of goods and services.
define capital this one
man made equipment used to produce goods and services.
Define Entrepreneurship this one
The person(s) who take the risk of organising the other factors of production to achieve a profit.
What are other names for factors of production.?
Inputs
Rescorces
What are our 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-durable consume?
consumer goods that are used up immediately eg foods and drinks.
What are the types of productions are there?
Goods-capitol
-consumers
Services -business
- consumer
What are renewable recourses? this one
Replaced or replenished within a 100 years
What are non renewable resources?
Raw materials that cannot be replaced or replenished e.g oil gold silver
What are positive goods?
beneficial 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 land? this one
Rent
What is the payment for labour? this one
wages
What is the payment for capital? this one
interset
What is the payment for Entrepreneurship? this one
profit
WhaT is a subsistence society?
Everybody is independent, working to stay at the same point as before
;;No surplus
What is independence?
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 SPECIALISATION.
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 and more efficiently.
A surplus can be created through training.
What is a dependence?
You rely on others and they don’t rely on you e.g baby and mother.
what is Interdependence?
A situation where you rely on others + they rely on you for success.
What is a disadvantage of specification?
- Interdependence
- Boring
- 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+ specialise at the task.
Advantages of division of labour by process?
- more efficiency
- a bigger surplus then before
- more productivity
- surpluses were now able to be traded Imports/Exports
What is the three major innovations to improve surpluses in economy?
- Mechanisation
- Division of labour by product
- Division of labour by process
