Resources Flashcards
(33 cards)
How are scarce resources allocated?
The Price System
Rationing - via Vouchers
Queuing, - First in first served.
What are free goods?
Goods so abundant that there is no price for them.
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 provided by nature.
Define Labor.
Human Resources, Human effort
Define Capital.
Man made resources used to assist production.
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 types of goods are there?
Consumer goods and Capital Goods
What types of Consumer goods are there?
Durable goods and Non-Durable Goods.
Define Consumer goods.
Goods to assist consumer’s satisfaction for needs and wants.
What are Renewable resources?
Natural resources that will replenish in 100 years.
What are Non-Renewable Resources?
Natural Resources that will not replenish when they are used up.
What is the payment for land?
Rent
What is the payment for capital?
Interest
What is the payment for labor?
Wages
What is he payment for entrepreneur?
Profit
What is a producer?
A person or company that produces goods and services.
What is a consumer?
Someone that purchases anything.
What is a positive good?
A good that is beneficial.
What is a negative good?
A good that is harmful.
