Resourcs

Question 1

What are free goods?

Answer 1

Goods so abundant that there in 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

Price System (90%)
Rationing - Voucher.
queuing - First in first served.

Question 4

How do we know an economic good is very scarce.

Answer 4

The price is very high.

Question 5

What are the resources of economy?

Answer 5

1. Land
2. Labour
3. Capital
4. Entrepreneurship

Question 6

Define land.

Answer 6

Raw materials used in production and a gift of nature. e.g. oil gold etc.

Question 7

Define labour.

Answer 7

A human effort in production of goods + services.

Question 8

Define entrepreneurship

Answer 8

The person(s) who take the RISK of organising the other factors of production to achieve a profit

Question 9

What are other names for factors of production?

Answer 9

1. Inputs

2. Resources

Question 10

define final goods

Answer 10

Consumer goods available for consumption for needs+ wants

Question 11

Define durable consumer goods

Answer 11

Consumer goods that for a long time - Car, house.

Question 12

What are the types of production

Answer 12

There are capital and consumer goods and business and consumer services.

Question 13

What are renewable resources?

Answer 13

They are replaced or replenished within 100 years.

Question 14

What are non renewable resources?

Answer 14

Raw materials that cannot be replaced or replenished -oil, gold, silver.

Question 15

What are positive goods?

Answer 15

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

Question 16

What are negative goods?

Answer 16

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 17

what is the payment for land?

Answer 17

You are paying rent for land.

Question 18

what is the payment for capital?

Answer 18

the payment for capital interest

Question 19

what is the payment for labour?

Answer 19

the payment for labour is wages.

Question 20

what is the payment for entrepreneurship?

Answer 20

the payment for entrepreneurship is profit

Question 21

Define capital?

Answer 21

Man made equipment used to produce goods and services

Question 22

define non durable goods

Answer 22

consumer goods that are used up immediately e.g. food, lolly pops.

Question 23

What is a substance society?

Answer 23

Everybody is independent working to stay at the same point as before and no surplus

Question 24

What is independence?

Answer 24

You rely on yourself and do not rely on others

Question 25

What is specialization?

Answer 25

Specialisation is 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

Its individuals concentrating on producing a specific good or service.

Question 28

What is a benefit of specialisation

Answer 28

gain more means, time etc and higher quality goods + services. 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 are the 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