Revisit Business Activity 1

Which of these is the best definition of the 'economic problem'?

• people do not have enough money

• Not enough resources to satisfy people's wants

• Not enough wants for the unlimited resources to satisfy

• There are too many factors of production

Which of the following is NOT a factor of production?

• Gold reserves

• Vehicles

• Manager

• Microsoft Teams

Division of labour is:

• Workers become specialist in all jobs

• Workers specialise on just one task

• All firms have only one worker so jobs are divided between firms

• No workers are employed as machines always do all the work

The best definition of a business is an organisation that:

• Is owned by the government

• produces only goods and services that satisfy people's basic needs

• Buys products from other firms and sells them to consumers for a profit

• combines the factors of production to make products that satisfy people's needs and wants

If a designer buys cloth for $30 and makes a suit that he sells for $70 then he has:

• Made a profit on the suit of $40

• Added $40 of value to the material

• Incurred no opprotunity cost in making the suit

• Used his own labour as the only factor of production in making the suit

Primary stage of production is concerned with:

• Providing services

• Extracting natural resources from the earth

• Converting natural resources into finished goods

• Transporting finished goods to final consumers

Which of the following businesses are found in secondary sector?

• Gold mining company

• Farming business

• Tour operator

• Construction company

In a mixed economy, which of the following groups industries are most likely to be owned by the government?

• Hotels and resorts

• Electricity and public transport

• Taxi services

• Online retailing portals

Privatisation means:

• Converting private limited companies into public limited companies

• Converting a partnership into a private limited company

• Selling a state owned industry to the private sector

• Buying a private sector business by the government

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