resources Flashcards
What are free goods?
Goods so abundant that there is no scarcity. They have no price.
what are economic goods
Scarce that have a price
How are economics are allocated?
Price system (90%)
Rationing vouchers
Queuing-first in first served
How do we know economics good is very scarce?
The price is high.
What are the resources of an economy?
Labour, capital, entrepreneurship.
What are the differences between needs and wants
needs you must have to sustain life but wants you don’t, they just satisfy for likes. Needs are limited but wants are unlimited.
final goods
consumer goods available for consumption for needs and wants.
what are capital goods
man made goods
define durable consumer goods
are consumer goods that last a long time etc cars. houses
define non-durable consumer goods
consumer goods that are used up immediately
e.g.food, lollies, drinks
what are types of production are there
goods which are capital, consumer
services which are consumer, business
what are renewable resources
replaced or replenished within 100 years e.g. trees
what are non renewable resources?
raw materials that cannot be replaced or replenished e.g. oil, gold, silver
define land
raw materials used in production and a gift of nature.
define entrepreneurship
the person (s) who take the risk of other factors and production to achieve a profit.
What are other names for factors of production
input
resources
define labour
human effort in production of goods
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 of land
rent
what is the payment of capital
interest
what is the payment for labour
wages
what is the payment for entrepreneurship
profit
What is subsistence society?
- everybody is independent
- working to stay at the same point as before
- there is no surplus
What is independent?
you rely on yourself and do not rely on others.
what is specialisation?
its individuals concentrating on a specific task, to become an expect at.
What is division of labour.
breaking down the production process. into smaller tasks so a worker becomes specialist
What is division of labour by product.
Individuals concentrating on producing a specific goods or services
What is a benefit of specialisation ?
gain more means- time
- skill
Higher quality goods + services, more efficiently / faster.
A surplus can be created for trading
what is interdependence
a situation where you rely on others and they rely on you for success
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 soil may not be wanted in future
what is the three major innovations to improve surplus in economy?
- mechanisation
- division of labour by product
- division of labour by process
