Principles of Business - Chapter 1: Background to Business

Front

What are basic needs?

Back

Basic needs are essential for survival, such as food, clothing, and shelter.

Front

What is the difference between needs and wants?

Back

Needs are essential for survival, while wants are desires for things that are not necessary.

Front

What is direct production?

Back

Direct production is when people engage in activities to satisfy their needs for themselves and their family, such as hunting, fishing, farming, or gardening.

Front

What is a subsistence economy?

Back

A subsistence economy is one where humans produce just enough to survive but not to improve their way of life.

Front

What is surplus in the context of production?

Back

Surplus refers to the extra goods produced beyond what is needed for personal consumption.

Front

What is barter?

Back

Barter is the exchange of goods and services without the use of money.

Front

List one advantage of barter.

Back

People were able to dispose of their waste/surplus.

Front

List one disadvantage of barter.

Back

Double coincidence of wants: you must find someone who wants what you have and has what you want.

Front

What solved the disadvantages of the barter system?

Back

Money solved the disadvantages of the barter system.

Front

What is money?

Back

Money is anything that has value and is widely accepted as a medium of exchange.