Resources

Question 1

What are Free Goods?

Answer 1

Goods so abundant that there is no scarcity. They have no price.

Question 2

What are Economic Goods?

Answer 2

Scarce goods that have a price.

Question 3

How are Economic Goods allocated?

Answer 3

1. Price System (90%)
2. Rationing- Vouchers
3. Queuing- First in, First Serve

Question 4

How do we know and Economic Good is very scarce?

Answer 4

The price of the Economic Good is very high.

Question 5

What are the resources of an Economy?

Answer 5

1. Labour
2. Capital
3. Entrepreneurship

Question 6

Define Land

Answer 6

Raw materials used in productions and a gift of nature.

Question 7

Define Labour

Answer 7

A human effort in production of goods and services.

Question 8

Define Capital

Answer 8

Man made equipment used to produce goods and services.

Question 9

Define Entrepreneurship

Answer 9

The persons who take the RISKS of organising the other factors of production to achieve a PROFIT.

Question 10

What are other names for factors of production?

Answer 10

1. Inputs

2. Resources

Question 11

Define Final Goods

Answer 11

Consumer goods available for consumption for need and wants.

Question 12

Define Durable Goods

Answer 12

They are consumer goods that last for a long time, for example, car or a house.

Question 13

Define non-durable Goods

Answer 13

Consumer goods that are used up immediately e.g food, lollypops.

Question 14

What are the types of production?

Answer 14

There are Capital and Consumer Goods and business and consumer services.

Question 15

What are Renewable Resources?

Answer 15

They are replaced or replenished within 100 years e.g trees, humans

Question 16

What are Non-renewable Resources?

Answer 16

Raw materials that cannot be replaced or replenished e.g oil, gold and silver.

Question 17

What are Positive Goods?

Answer 17

Positive goods are beneficial to society, e.g fresh air, medicine.

Question 18

What are Negative Goods?

Answer 18

Negative goods are a cost to society, e.g waste products that pollute rivers so the water cannot be used for drinking or water sports.

Question 19

What is the payment for land?

Answer 19

You are paying rent for your land.

Question 20

What is the payment for capital?

Answer 20

You are paying interest.

Question 21

What is the payment for labour?

Answer 21

Your are paying wages.

Question 22

What is the payment for entrepreneurship?

Answer 22

You are paying profit.

Question 23

What is a subisitence society?

Answer 23

Everybody is independent. Working to stay at the same point as before. There is no surplus.

Question 24

What is independence?

Answer 24

You rely on yourself and do not rely on others.

Question 25

What is specialisation?

Answer 25

Individuals concentrating on a specific task.

Question 26

What is division of labour?

Answer 26

Breaking down the production process into smaller tasks so a worker becomes a specialist.

Question 27

What is division of labour by product?

Answer 27

Individuals concentrating a producing a specific good or services.

Question 28

What is a benefit of specialisation?

Answer 28

1. Gain more means. More time and skill 2. Higher Quality goods and services more efficiently/faster 3. A surplus can be created for trading.

Question 29

What is Interdependence?

Answer 29

A situation where you rely on others and they rely on you for success/survival.

Question 30

What is dependence?

Answer 30

It is where you rely on others while they don't rely on you.

Question 31

What is a disadvantages of specialisation?

Answer 31

1. Interdependence 2. Boring- repetitive 3. Your skill may not be wanted

Question 32

What is division of labour by process?

Answer 32

Where individuals break down the production of a product of service into smaller tasks plus specialise at that task.

Question 33

What are the advantages of division of labour by process?

Answer 33

1. More Efficiency 2. A bigger surplus than before. 3. More productivity 4. Surpluses are now able to be traded. Imports/Exports

Question 34

What is the three major innovations to improve surpluses in economy?

Answer 34

1. Mechanisation 2. Division of Labour by product 3. Division of Labour by Process