Resources Flashcards
(37 cards)
How are scarce resources allocated?
The price system, Rationing, Queuing system (First in first served)
What are free goods?
Goods so abundant that there is no price.
What are economic goods?
Scarce goods that are allocated by the price system, rationing or queuing.
What happens if goods are scarce?
The price rises.
What are the resources?
Land, Labor, Capital, Entrepreneurship
Define Land
Raw materials, supplied by nature, for the production of goods and services,
Define Labor
Human Resources/ Human Effort used for the production of goods and services
Define Capital
Man- made resources used to assist the production of goods and services
Define Entrepreneurship
The person who takes the risk of organizing the other factors of production to achieve a profit from production.
What are other names for resources?
Factors of production or Inputs to production.
What types of production are there?
Goods and services
What type of goods are there?
Consumer goods, Capital goods
What types of consumer goods are there?
Durable goods, Non- durable goods
What are renewable resources?
Natural resources that will replenish in 100 years
What are non-renewable resources
Natural resources that will not replenish, e.g. oil gold and coal
What/who are producers
Producers are people/companies that provide our goods and services
What is the payment for land?
Rent
What is the payment for labor?
Wages
What is the payment for capital?
Interest (Money)
What is the payment for entrepreneurship?
Profit
What are goods?
Objects with a physical presence.
What is a positive good?
A good that is beneficial to society e.g. medicine.
What is a negative good?
A good that is harmful/ a cost to society e.g. pollutants
What is interdependence?
When people depend on each other for their needs and wants.
