Resources Flashcards
What are free good?
Goods so abundant that there is no scarcity. They have no price.
What are economic goods?
Scarce good that have a price.
How are economic goods allocated?
Price system ( 90 percent ) Rating- vouchers, 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?
labour, capital, land and entrepreneurship.
Define land?
Raw materials used in production and a its also gift of nature.
Define labour?
Human effort in production of goods and serious.
define capital?
Man made equipment used to produce goods.
define entrepreneurship?
The persons who take the risk of organising the other factors of production to achieve a profit.
final goods
consumer goods available for consumption for needs and wants.
define durable consumer goods?
consumer goods that last for a long time, car or house.
define non-durable consumer goods?
consumer goods are things used up immediately.
what are the types of production?
goods, capital, consumer, services.
what are renewable resources?
replaced or replenished with 100 years, trees.
what are non renewable resources?
Raw materials that cannot be replaced or replenished, oil, gold, silver.
What is a subsistence society?
A subsistence society is where everybody is independent working to stay at the same point as before. - there is no surplus.
What is independence?
You reply in yourself and do not rely on others.11
What is specialization?
Specialization is 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.
What is division of labour by product?
Its individuals concentrating on producing a specific good or service.
What is a benefit of specialization.
Gain more means-time etc and higher quality goods and services. A surplus can be created for trading.
What is the three major innovations to improve surpluses in economy?
- Mechanization * Division of labour my product * Division of labour my process.
