Section 1 Revision -Business studies

Why does scarcity exist?

• Each year workers tend to produce less than previously 
• Machines wear out in time
• There are not sufficient resources to meet everyone's wants
• There is a limit to people's wants 

What factor of production's function is to make decisions and take risks?

• Capital
• Enterprise 
• Land 
• Labour 

What is meant by opportunity cost?

• The next best alternative foregone
• The cost of the item selected
• The cost of exploring business opportunities
• The labour used in producing the product 

Which are not a factors of production

• land
• rent
• capital
• interest

Which of the following is an example of PRIMARY business activity?

• Factories
• Shops
• Schools
• Farmers

Which of the following is an example of SECONDARY business activity?

• School
• Factories
• Shops
• Farmers

Which of the following is an example of TERTIARY business activity?

• Schools
• Farmers
• Fishermen
• Factories

At which stage of business activity are trees chopped down?

• Primary
• Secondary
• Tertiary

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

• Private sector

• Voluntary sector

• Public sector

• Mixed economy

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.