Understanding Business Activity

Front

What is the purpose of business activity?

Back

To provide consumers with goods and services that meet their needs and wants.

Front

Define 'need' in the context of business.

Back

A good or service which people must have to be able to live, such as water, food, shelter, and clothing.

Front

What is a 'want'?

Back

A good or service which people would like to have but is not essential for living, such as mobile phones and holidays.

Front

What is business activity?

Back

The process of producing goods and services to satisfy consumer demand.

Front

What is scarcity?

Back

The economic problem that arises because there are not enough goods and services to meet unlimited wants.

Front

What are the four factors of production?

Back

Land, Labour, Capital, and Enterprise.

Front

What is opportunity cost?

Back

The benefit that could have been gained from an alternative use of the same resource.

Front

What does specialisation mean in business?

Back

When people and businesses concentrate on what they are best at, leading to increased efficiency.

Front

What are consumer goods?

Back

Goods that are sold to the public that can be seen and touched, such as computers and food.

Front

What are consumer services?

Back

Products sold to the public that cannot be seen or touched, such as insurance and banking services.