1.1 Business Activity (IG/AS)

_______________ is the difference between the cost of purchasing raw materials and the price the finished goods are sold for

___________________ is the next best alternative given up by choosing another item

_________________ are the resources needed to produce good or services: land, labour, capital, enterprise

A baker has to choose between buying a new oven or a new sign for his shop. He chooses the new over, what is the opportunity cost?

Tick the advantages of division of labour/ specialisation

• It saves time

• higher productivity

• if someone is absent, the production line could stop

• employees might get bored

Tick the disadvantages of division of labour/ specialisation

• Employees get skilled in one skill

• movement around the factory is reduced and safety improved

• less training is needed

• employees might be dissatisfied

Unlimited wants + limited resources = ______________​

a car, a new iphone and a vacation are all examples of ________

water, food and shelter are examples of __________

How can a hairdresser's increase their added value?

• private consultations with the hairdresser

• longer waiting times

• new, more comfortable chairs

• use more shampoo