GSCE CAMBRIDGE BUSINESS C1

Factor of goods?

• Can physically touch

• Intangible

• Cannot physically touch

• services

Factors of services?

• products

• Can physically touch

• Intangible

• food

What are needs?

• Things we want

• Things we cannot live without

• Things we can live without

• Not necessary

What are wants?

• food

• Things we cannot live without

• needs

• Things we can live without

What are the factors of production?

• -Land

  -Labour

  -Capital

  -Scarcity

• -Land

  -Capital

  -Labour

  -Enterprise

• -Capital

  -Enterprise

  -Labour

  -Intensive therapy

• -Investment

  -Enterprise

  -Land

  -Capital

What is an entrepreneur

• Someone who takes the risk to make a profit

• Someone who takes the risk for charity

• Someone who doesn't take the risk to make a profit

• Someone who takes the risk to break-even

What is scarcity

• When there are not enough goods to meet the wants and needs of consumers

• When demand is less than supply

• When demand is greater than supply

• When there are more then enough goods to meet the needs and wants of consumers

What is opportunity cost?

• Loss of other alternatives when one is chosen

• When choosing an option voids all others

• Gain of alternatives when one is chosen

• When choosing an option creates others

What is specialisation?

• Being good at something

• Being bad at something

• Being good at something/having a comprehensive understanding of something

• Having a compressive understanding of something

What is adding value?

• When the selling price of an item is higher than the cost of production

• after buy service

• When the selling price of an item is lower than the cost of production

• The division of labour into specialised jobs