Y7 - Business Studies (Term 1, p.21)

Which of the following are true?

• The business world is all around us.

• Business provide us - suppliers - with all the good and services that we need and would like to have.

• We are using things made by businesses around the world.

The final user of a product.

• consumer

• business activity

• needs

• wants

The process of producing goods and services to satisfy consumer demand.

• consumer

• business activity

• needs

• wants

A good or service which is essential to living.

• consumer

• business activity

• need

• want

A good or service which people would like, but is not essential for living.

• consumer

• business activity

• need

• want

Wants are the same as needs.

• True

• False

What are examples of wants?

• mobile phones

• cars

• holidays

• water

• shelter

What are examples of needs?

• mobile phones

• food

• holidays

• water

• shelter

Which of the following are true?

• The main reason you may have given for not having all of your wants is you may not have enough money to buy them.

• Our needs are unlimited.

• Our wants are unlimited.

• Others, who can afford their basic needs, cannot afford to buy what they want.

Unlimited wants cannot be met because there are limited factors of production. This creates scarcity.

• economic problem

• factors of production

• land

• labour

• capital