Economic Activities (Grade 7)

Andy is a shoemaker, and he also owns and manages his factory. He managed to expand his business to some other countries by opening up some branches. However, 2020 was not a good year for him due to the pandemic. He had to close down some of his stores to cut costs. Which part of factors of production is Andy?

• Land

• Labour

• Enterprise

• Capital

When Andy closed some of his shops, it was to reduce some costs. This way, he did not have to spend as much money as before for renting the stores and hiring shop assistants. Which factors of production did he need to reduce? (more than 1 answer)

• Capital

• Enterprise

• Land

• Labour

See yourself as an entrepreneur. If you need to inject some money into the business, you need help from either investor or a financial institution (bank). Lisa does not want to have another investor because she wants to lose control over her own business. So, she decides to borrow some money from the bank. What does she need to pay back in return to the bank?

• rent

• salaries

• interest

• profit

Which of the following is not the main concern, as a business owner, before deciding to produce goods or services?

• What type of goods or services you would like to sell?

• Are there any buyers for your goods or services?

• How do you make them? What are the materials?

• Will the government help you with financial support? 

The party who helps you to deliver goods you make to your potential consumers is called ....

• producer

• distributor

• household

• private companies

Which of the following is NOT the main purpose of distribution as an economic activity?

• To deliver goods or services to the consumers

• To add value to the products once they reach the customers

• To ensure the continuity of the production process

• To ensure the employment in the distribution sector

_______ is the means by which a product is passed from the place of production to the customer.

• Shipping

• Stores or shops

• Distribution channel

• Wholesaler

Description of this distribution method: It has large stores, usually in the center of towns or cities; It usually sells a wide variety of products from a wide range of suppliers. It is also a retail establishment offering a wide range of consumer goods in different areas of the store, each area specializing in a product category

• Department store

• Chain stores

• Direct sales

• Supermarkets

Which of the following is the best definition for PRODUCTION?

• an activity done by businesses to make goods and services

• an activity of transforming raw materials into finished products

• an economic activity of combining factors of productions to make goods and services which usually leads to economic profit

• an economic activity or process of combining raw materials and labour to make products to meet the demand in order to gain profit