Resourcs Flashcards
What are free goods?
Goods so abundant that there in NO scarcity. They have NO price.
What are economic goods?
Scarce goods that have a price.
How are economic goods allocated.
Price System (90%)
Rationing - Voucher.
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 economy?
- Land
- Labour
- Capital
- Entrepreneurship
Define land.
Raw materials used in production and a gift of nature. e.g. oil gold etc.
Define labour.
A human effort in production of goods + services.
Define entrepreneurship
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
2. Resources
define final goods
Consumer goods available for consumption for needs+ wants
Define durable consumer goods
Consumer goods that for a long time - Car, house.
What are the types of production
There are capital and consumer goods and business and consumer services.
What are renewable resources?
They are replaced or replenished within 100 years.
What are non renewable resources?
Raw materials that cannot be replaced or replenished -oil, gold, silver.
What are positive goods?
Positive goods are beneficial to society e.g. fresh air, medicine.
What are negative goods?
Negative goods are a cost to society e.g. waste products that pollute rivers so the water cannot be used for drinking or water sports.
what is the payment for land?
You are paying rent for land.
what is the payment for capital?
the payment for capital interest
what is the payment for labour?
the payment for labour is wages.
what is the payment for entrepreneurship?
the payment for entrepreneurship is profit
Define capital?
Man made equipment used to produce goods and services
define non durable goods
consumer goods that are used up immediately e.g. food, lolly pops.
What is a substance society?
Everybody is independent working to stay at the same point as before and no surplus
What is independence?
You rely on yourself and do not rely on others
What is specialization?
Specialisation 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 specialisation
gain more means, time etc and higher quality goods + services. A surplus can be created for trading.
What is Interdependence?
A situation where you rely on others and they rely on you for success/survival.
What is dependence?
It is where you rely on others while they don’t rely on you.
What are the disadvantages of specialisation?
- Interdependence
- Boring- repetitive
- Your skill may not be wanted.
What is division of labour by process?
Where individuals break down the production of a product of service into smaller tasks plus specialise at that task.
What are the advantages of division of labour by process?
- More Efficiency
- A bigger surplus than before.
- More productivity
- Surpluses are now able to be traded. Imports/Exports
