Understanding business activity

Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.

• Tertiary Sector

• Primary Sector

• Secondary Sector

• The economic problem

Land, labour, capital and enterprise are collectively known as

• Goods and services

• Business cycle

• Factors of production

• Output

Organisations run by central or local government are often referred to as

• Private sector

• Voluntary sector

• Public sector

• Mixed economy

Which of these is the best definition of the ‘economic problem’?

• People do not have enough money.

• There are not enough resources to satisfy people’s wants.

• There are too many factors of production.

• The amount of something produced by a person, machine or industry.

Which of the following is NOT a factor ofproduction?

• oil reserves

• factory buildings

• skilled labour

• a play station

Division of labour can be defined as:

• Workers specialise on just one task and become better at it.
• Workers become specialist in all jobs.
• All firms only have one worker
• No workers are employed as machines always do all the work.

Which of the following is NOT one of the benefits of business growth?

• Sales will increase.
• Market share will probably rise.
• The business will probably become more secure.
• Management will have less work to do.

Examples of tertiary sector companies include...

• Farming, fishing, mining
• Transport, banking, teaching, nursing, police
• Building, processing food, manufacturing

Which is a disadvantage of 'division of labour'?

• workers and trained in one task & specialised in this, increasing efficiency.

• Quicker & cheaper to train workers as fewer skills need to be taught.

• Workers can become bored from doing just one job - efficiency might fall.

• Less time is wasted moving from one workbech to another.

What is 'added value'?

• is the next best alternative given up by choosing another item.

• is the difference between the selling price of a product and the cost of bought-in materials and components.

• It's a good or service essential for living.

• is the lack of sufficient products to fulfil the total wants of the population.