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

they are scarce goods that have a price

Question 3

how are economics goods allocated

Answer 3

the price system (90%)
rationing voucher
queuing first in first served

Question 4

how do we know an economic 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

what are positive goods

Answer 6

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

Question 7

what are negative goods

Answer 7

negative goods are a cost to society e.g waste products that pollute rivers so the water cannot be used for drinking or water

Question 8

what is the payment for land

Answer 8

rent

Question 9

what is the payment for capital

Answer 9

interest

Question 10

what is the payment for labour

Answer 10

wages

Question 11

what is the payment for entrepreneurship

Answer 11

profit

Question 12

what is a subsistence society

Answer 12

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

Question 13

what is independence

Answer 13

you rely on yourself and do not rely others

Question 14

what is specialisation

Answer 14

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

Question 15

what is division of labour

Answer 15

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

Question 16

what is division of labour by product

Answer 16

individuals concentrating on producing a specific good or service.

Question 17

what is a benefit of specialisation

Answer 17

gain more means -time -skill. higher quality goods more efficiently/faster. A surplus can be created for trading

Question 18

what is interdependence

Answer 18

a situation where you rely on other and they rely on you for success/ survival

Question 19

what is dependence

Answer 19

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

Question 20

what is the disadvantage of specialisation

Answer 20

• Interdependance
• Boring - repetitive
• Your skill may not be wanted in the future

Question 21

what is division of labour by process

Answer 21

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

Question 22

advantages of division of labour by process

Answer 22

• More efficiency
• A bigger surplus than before
• More productivity
• Surpluses were now traded Imports/Exports

Question 23

What is the three major innovations to improve surpluses in economy

Answer 23

• Mechanisation
• Division of Labour by product
• Division of Labour by process