resources and production Flashcards
what are productive resources? + examples
the resources that are used in production. examples are labour, natural resources, capital resources, and the entrepreneur.
what are natural resources? + examples
resources that occur in nature that have value and may be used in production. examples are minerals, forests, water, and fish.
what are labour resources? what do we consider when talking about labour resources?
the services provided by workers used in an economy or firm to produce goods and services. We consider not only the number of workers but also their skills, knowledge, initiative and effort.
What are capital resources? + examples
goods that are used in the production of other goods and services. examples are machinery, facilities and equipment.
what is an entrepreneur?
An individual who starts their own business or
aggressively expands existing ones. They organize the other productive factors for the purpose of producing gods or services, and assume the risks involved in the running the business.
intangible vs tangible resources
tangible are things that you are able to touch. if intangible you are unable to touch or grasp it.
what is the ppc?
the production possibilities curve is a graphical representation of the production choices facing an economy. It shows the possible combinations of output that can be produced with a given set of resources.
what are the assumptions for a ppc?
only two goods can be produced.
Resources and technology are fixed.
All resources are used to their fullest capacity to
produce maximum output.
why would the curve bulge?
due to the law of opportunity cost.
why would the curve be a straight line? + example
if there is a constant opportunity cost because resources are perfectly substitutable. an example would be coke and pepsi.
do worksheet.
