resources

Question 1

What are free goods?

Answer 1

Goods so abundant that there is no scarcity. They have no price.

Question 2

what are economic goods

Answer 2

Scarce that have a price

Question 3

How are economics are allocated?

Answer 3

Price system (90%)
Rationing vouchers
Queuing-first in first served

Question 4

How do we know economics good is very scarce?

Answer 4

The price is high.

Question 5

What are the resources of an economy?

Answer 5

Labour, capital, entrepreneurship.

Question 6

What are the differences between needs and wants

Answer 6

needs you must have to sustain life but wants you don’t, they just satisfy for likes. Needs are limited but wants are unlimited.

Question 7

final goods

Answer 7

consumer goods available for consumption for needs and wants.

Question 8

what are capital goods

Answer 8

man made goods

Question 9

define durable consumer goods

Answer 9

are consumer goods that last a long time etc cars. houses

Question 10

define non-durable consumer goods

Answer 10

consumer goods that are used up immediately

e.g.food, lollies, drinks

Question 11

what are types of production are there

Answer 11

goods which are capital, consumer

services which are consumer, business

Question 12

what are renewable resources

Answer 12

replaced or replenished within 100 years e.g. trees

Question 13

what are non renewable resources?

Answer 13

raw materials that cannot be replaced or replenished e.g. oil, gold, silver

Question 14

define land

Answer 14

raw materials used in production and a gift of nature.

Question 15

define entrepreneurship

Answer 15

the person (s) who take the risk of other factors and production to achieve a profit.

Question 16

What are other names for factors of production

Answer 16

input

resources

Question 17

define labour

Answer 17

human effort in production of goods

Question 18

what are positive goods

Answer 18

beneficial to society e.g. fresh air, medicine

Question 19

what are negative goods

Answer 19

cost to society e.g. waste products that pollute rivers

Question 20

what is the payment of land

Answer 20

rent

Question 21

what is the payment of capital

Answer 21

interest

Question 22

what is the payment for labour

Answer 22

wages

Question 23

what is the payment for entrepreneurship

Answer 23

profit

Question 24

What is subsistence society?

Answer 24

• everybody is independent
• working to stay at the same point as before
• there is no surplus

Question 25

What is independent?

Answer 25

you rely on yourself and do not rely on others.

Question 26

what is specialisation?

Answer 26

its individuals concentrating on a specific task, to become an expect at.

Question 27

What is division of labour.

Answer 27

breaking down the production process. into smaller tasks so a worker becomes specialist

Question 28

What is division of labour by product.

Answer 28

Individuals concentrating on producing a specific goods or services

Question 29

What is a benefit of specialisation ?

Answer 29

gain more means- time
- skill
Higher quality goods + services, more efficiently / faster.
A surplus can be created for trading

Question 30

what is interdependence

Answer 30

a situation where you rely on others and they rely on you for success

Question 31

what is dependence

Answer 31

you rely on others and they do not rely on you e.g. baby and mother

Question 32

what is a disadvantage of specialisation

Answer 32

• interdependence
• boring - repetitive
• your soil may not be wanted in future

Question 33

what is the three major innovations to improve surplus in economy?

Answer 33

• mechanisation
• division of labour by product
• division of labour by process