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 goods that have a price.

Question 3

How are Economic Goods Allocated

Answer 3

Price system (90%)
Rationing - Vouches
Queuing - First in First Served

Question 4

How do we know an Economic good is very scarce?

Answer 4

The price is high.

Question 5

What are the Resources of an Economy?

Answer 5

Land
Labour
Capital
Entrepreneurship

Question 6

Define Land

Answer 6

Raw materials used in production and a gift of nature

Question 7

Define Labour

Answer 7

Human effort in production of goods & services.

Question 8

Define Capital

Answer 8

Man made equipment used to produce goods & services.

Question 9

Final Goods

Answer 9

Consumer goods available for consumption for needs & wants.

Question 10

Define durable consumer goods

Answer 10

Consumer goods that last for a long time car,house

Question 11

Define non-durable consumer goods

Answer 11

Consumer goods that are used up immediately e.g Food, lollies, drinks.

Question 12

What are the types of production?

Answer 12

Goods: Capital, Consumer
Services: Business, Consumer

Question 13

What are Renewable resource?

Answer 13

Replaced or replenished within 100 years e.g trees

Question 14

What are non renewable resources?

Answer 14

Raw materials that cannot be replaced or replenished oil, gold, silver.

Question 15

What are positive goods?

Answer 15

Positive goods are beneficial to society e.g fresh air, medicine

Question 16

What are negative goods?

Answer 16

Negative goods are a cost to society e.g waste products that pollute rivers so that water can not be used to drinking or water sports.

Question 17

What is the payment of land?

Answer 17

Land is payed by rent.

Question 18

What is the payment for capital?

Answer 18

Capital gets payed interest.

Question 19

What is the payment for labour?

Answer 19

Labour gets payed a wage.

Question 20

What is the payment for entrepreneurs?

Answer 20

Entrepreneurs get payed profit.

Question 21

What is specialisation

Answer 21

Individuals concentrating on a specific task. To become an expert at it.

Question 22

What is division of labour

Answer 22

Breaking down the PRODUCTION process. Into smaller TASKS so a worker becomes a SPECIALIST.

Question 23

What is division of Labour by product

Answer 23

Individuals concentrating on producing a specific good or service.

Question 24

What is a benefit of specialisation?

Answer 24

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

Question 25

What is Interdependendence

Answer 25

A situation where you rely on others and they rely on you for success/survival.

Question 26

What is dependence

Answer 26

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

Question 27

What is a disadvantage of specialisation

Answer 27

Interdependence, boring (repetitive), your skill may not be wanted in future.

Question 28

What is division of Labour by process

Answer 28

Where individuals break down the production of a product or service into smaller tasks and specialise at that task.

Question 29

Advantages of division of Labour by process

Answer 29

More efficiency, a bigger surplus than before, more productivity.

Question 30

What is the three major innovations to improve surpules in economy

Answer 30

Mechanisation, division of labour by product, division of labour by process.