Resources Flashcards
What are free goods?
Goods so abundant that there is no scarcity. They have no price.
What are economic goods?
Scarce goods that have a price.
How are economic goods allocated?
Price system (90%)
Rationing- vouchers
Queuing- first in first served
How do we know an economic good is very scarce?
The price is very high.
What are the resources of an economy?
Land
labour
Capital
Entrepreneurship
Define land.
Raw materials used in production and a gift of nature.
Define labour.
It is a human effort in production of goods + services.
Define capital.
Man made equipment used to produce goods + services.
define entrepreneurship.
The person(s) who take the risks of organising the other factors of production to achieve a profit.
What are the other name for factors of production?
Inputs
Resources
Define final goods.
Consumer goods available for consumption for needs + wants.
Define durable consumer goods.
Consumer goods that last for a long time.
- car
- house
Define non-durable consumer goods.
Consumer goods that are used up immediately
- food
- cigarettes
What are the types of production?
Goods- Capital & Consumer
Services- Business & Consumer
What are renewable resources?
Replaced or replenished within 100 years
-trees
What are non-renewable resources?
Raw materials that cannot be replaced or replenished
- oil
- gold
- silver
What are positive goods?
Positive goods are beneficial to society.
What are negative goods?
Negatives are a cost to society. E.g waste products that pollute the rivers so the water cannot be used for drinking.
What is the payment for land?
The payment of land is rent.
What is the payment for capital?
The payment for capital is interest.
What is the payment for labour?
The payment for labour is wages.
What is the payment for entrepreneurship?
The payment for entrepreneurship is profit.
What is a subsistence society?
Everybody is independent
working to stay at the same point as before
No surplus
What is independence?
You rely on yourself and do not rely on others.
