Resources Flashcards
(29 cards)
How are Scarce Resources allocated?
Price System,
Rationing-via vouchers,
Queuing System- First in First Served
What are Free Goods?
They are goods so abundant that there is no price for them.
What are Economic Goods?
They are goods that are allocated by the price, rationing or queuing systems.
What happens if goods are really scarce?
This price rises.
What are the Resources?
Land, Labour, Capital and Entrepreneurship
Define Land?
Raw Materials supplied by nature.
Define Labour?
Human resources or human labour
Define Capital?
Man Made resources used to assist production of good and services.
Define Entrepreneurship?
The person who takes the risk of organising the other factors of production to achieve a profit from profit
What are other names for Resources?
Factors of production or inputs to production
What type of Production are there?
Goods and Services
What types of Goods are there?
Consumer Goods and Capital Goods
What type of Consumer goods are there?
Durable Goods and Non Durable Goods
Define Consumer Goods?
Goods to assist consumers satisfaction for needs and wants.
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 of Entrepreneurship?
Profit.
What is a Positive Good?
Positive goods are beneficial to society
What is a Negative Good?
Negative goods are a cost to society
What are Renewable Resources?
Natural resources that will replenish after 100 years
What are Non-Renewable?
Natural resources that will bot replenish when used. e.g. coal, oil, gold
What is a Subsistence Economy?
Everybody works independently just to maintain their current living standards. There is no surplus produced.
What is Independent?
You rely on yourself for needs and wants. You do not rely on others.
