Business IGCSE Definitions to Learn S1Ch01

(a)   is a good or service which people would like to have, but which is not essential for living.

(a)   there exist unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity.

(a)   are those resources needed to produce goods or services.

(a)   is the lack of sufficient products to fulfill the total wants of the population.

(a)   is the next best alternative given up by choosing another item.

(a)   occurs when people and businesses concentrate on what they are best at.

(a)   is when the production process is split up into different tasks, and each worker performs one of these tasks. It is a form of specialization.

(a)   is combine factors of production to make products (goods and services) that satisfy people’s wants.

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

How to add value to products and services?

• Increase selling price but keep the cost of materials the same.

• Decrease selling price and increase the cost of materials.

• Branding

  Customer Service

  Adding features

  Quality

• Reduce the cost of materials but keep the price the same.