Resources Flashcards
(36 cards)
How are Scarce Resources allocated?
The Price System
Rationing - via vouchers
Queueing system - first in first serve
What are Free Goods?
Goods that are so abundant that there is no price.
What are Economic Goods?
Scarce Goods that are allocated by the Price System, Rationing or Queueing.
What happens if Goods are extremely scarce?
The price rises.
What are the Resources?
Land
Labour
Capital
Entrepreneurship
Define Land
Raw materials supplied by nature (including wind and sun)
Define Labour
Human resources or human effort
Define Capital
Man made resources used to assist production
Define Entrepreneurship
The person who takes the RISK of organising the other factors of production to achieve a profit from production
What are other names for Resources?
Factors of production and Inputs to production
What types of production are there?
Goods and Services
What type of goods are there?
Consumer goods
Capital goods
What type of consumer goods are there?
Durable goods
Non-durable goods
Define consumer goods
Goods to assist consumers satisfaction for needs and wants
What is a Renewable Resource?
Natural resources that will replenish in 100 years
What is a Non-Renewable Resource?
Natural resources that will not replenish when used (gold, oil, coal)
What are Positive and Negative goods?
Positive goods: Beneficial to our society (medicine)
Negative goods: Cost the society (polluting waters so we can’t drink it)
What is Factor Rewards?
Each part of Factor Production’s (Land, Labour, Capital, Entrepreneurship) reward
What is the difference between Goods and Services?
Goods are tangible whereas Services are intangible
What is the payment for Land?
Rent $
What is the payment for Labour?
Wages $
What is the payment for Capital?
Interest $
What is the payment for the Entrepreneur?
Profit $
What is a Producer?
Someone who makes Goods and Services
