Business and Economics: Pre-Test

What is a business?

• is the branch of knowledge concerned with the production, consumption, and transfer of wealth

• goods and/or services

• an organisation, enterprise or business engaged in the production and trade of goods and services, usually for profit

• not something we can physically touch, but it is usually something we value

What is economics?

• the branch of knowledge concerned with the production, consumption, and transfer of wealth

• studies the decisions made by individuals, households, businesses, governments and other groups about how scarce resources are allocated in attempting to satisfy unlimited needs and wants

• The system of buying, selling and using goods and services by all members of society and the careful management of money, supplies, and materials, to ensure that this cycle can continue to meet the needs and wants of society

• All of the above

Define a NEED?

• Something we want

• Is not needed for survival

• A good or service that is desired in order to provide satisfaction to the user, but which is not necessary for survival or to meet the basic standard of living in a community

• A good or service that consumers consider necessary to maintain their standard of living

Define a WANT?

• A good or service that consumers consider necessary to maintain their standard of living

• Something we need

• A good or service that is desired in order to provide satisfaction to the user, but which is not necessary for survival or to meet the basic standard of living in a community

• Needed for survival

Which of the following is NOT a NEED?

• Food

• Housing

• Mobile Phone

• Education

Which of the following is NOT a WANT?

• Entertainment

• Shopping

• Hygiene

• Social Media

What is the definition of a good?

• Not something we can physically touch, but it is usually something we value.

• Tangible items that satisfy needs and wants – they can be seen and touched. They can be bought from shops and stores such as supermarkets, departments stores and fast food outlets.

• Used to produce goods and services that satisfy needs and wants

• They must be satisfied if life is to continue

What is the definition of services?

• Tangible items that satisfy needs and wants – they can be seen and touched

• An economic good is a product which has a price when sold. It has a benefit to society. They can be scarce.

• Not something we can physically touch, but it is usually something we value. They are usually provided by companies and professional offices such as demolition companies, cleaning companies, law offices and banks

• Life can continue without them

Which of the following are types of goods?

• Food

• Car

• Clothing

• Education (school)

Which of the following is a type of service?

• Transport

• Health & Beauty

• Housing

• Mobile Phone