resources Flashcards
What are free goods
Goods so abundant that there is no scarcity, they have no price
What are economic goods
scarce goods that have a price
How are economic goods allocated
the 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 an economy
land,labour,capital,entrepreneurship,
Define land
Raw materials used in production and a gift of nature
Define labour
A human effort in production of goods + service
Define Capital
Man made equipment used to produce goods + services
Define entrepreneurship
The person(s) who take the desk of organising the other factors of production to achieve a profit
Define final goods
consumer goods available for consumption for needs + wants
Define non-durable consumer goods
consumer goods that are used up immediately e.g. food,cigarets
What are the types of production
goods=capital-consumers
services= buisnes-consumer
What are renewable resources
Replaced or replenished within 100 years.
e.g trees,people,entrepreneurs
What are non renewable resources
Raw materials that cannot be replaced or replenished
- oil
- gold
- silver
What is a subsistence society
- Everybody is independent
- working to stay at the same point as before
- there is no surplus
