Economic Resources

Question 1

Economic Resources are …

Answer 1

the Factors of Production (CELL).

Question 2

Capital

Answer 2

A man - made manufactured resource used to aid production + used in production process.
Reward / incentive is interest from the investment.
E.g. machines, factories + computers.

Question 3

Entrepreneurship

Answer 3

The individual who take initiative to set up business + employ different FoP.
Reward / incentive is profit - an incentive to take risks.

Question 4

Entrepreneurship example

Answer 4

Self employed, finance (need access to money - loans / savings - to get started).
people who start up businesses (Richard Branson).

Question 5

Land

Answer 5

Raw materials available from mining, fishing or agriculture.
Reward / incentive is rent.
E.g. oil, coal, fish, agricultural produce - fruit, commercial real estate - land to build factories.

Question 6

Labour

Answer 6

Human workers who are involved in producing the good - human resources.
Reward / incentive is wages.
E.g. workers (full / part time, temporary / permanent)

Question 7

Environment - scarce resource

Answer 7

only a limited amount of resources on planet, which are made up of renewable + non - renewable resources.

Question 8

Renewable resources

Answer 8

Can be replenished, meaning stock level can be maintained over time.
However, this assumes rate of consumption is less than rate of replenishment. If resource consumed faster than its renewed, stock decrease over time.

Question 9

Environmental economics

Answer 9

Can be managed by preventing / limiting deforestation.
Currently resources are being consumed faster than the planet can replace them.
Worldwide Fund for Nature claims 2 planets required to meet global demand by 2050 if this continues.