Resources Flashcards
(22 cards)
What are free goods?
goods so abundant that there is no scarcity. They have no price.
What are economic goods?
Scarce goods that have price
How are economic goods allocated
- The price system (90%)
- Rationing (vouchers)
- Queuing, first in first served.
How do we know an economic good is very scare?
The price is very good.
What are the resources of an economy?
- Labour
- capital
- land
- entrepreneurship
Define land
They are raw materials used in production and also it is a gift of nature.
What are positive goods?
goods that are beneficial for the society
What are negative goods?
are a cost of society
What is the payment for land?
wages
What is the payment for capital?
intrest
what is the payment for labour?
wages
what is the payment for entertainers?
profit
What is a subsistence society?
Everybody is indépendant
working to stay at the same point as before
no surplace
what is independence?
you rely on yourself and do not rely on others
What is specialisation?
Where you concentrate on one job so you can become an expert at it.
What is the division of labour?
Breaking down the production process into smaller tasks to a worker becomes an expert.
What is division of labour by product?
Individuals concentrating on producing a specific good or service
What is benefit of a specialisation?
Gain more means time skill
higher quality goods services more efficient faster
a surplace can be created fro trading
What is interdependence?
A situation where you rely on others and they rely on you for a success/survival.
What is division of labour by process
Where individuals break down the production of a product or service into smaller tasks and specialise in that task.
Advantage of division if labour by process
- More efficiency
- a bigger surplice than before
- more productivity
- trade started
What is the three main innovations to improve surplice in economy
- mechanisation
- division of labour by product
- division of labour by process
