Business Essentials 1.1 - 1.3

How many factors of production are there?

• 3

• 4

• 5

• 2

What are the factors of production?

• Land, Labour, Cost and Enterprises

• Land, Labour, Capitol and Enterprise

• Land, Labour, Capital and Enterprise

• Land, Company, Capital and Enterprise

Needs are goods or services essential for living while Wants are goods or services which people would like to have, but which is not essential for living.

• True

• False

What is the term that describes the shortage of good and services in a country due to the limited availability of Factors of Production (resource of productions) ?

• Poverty

• Famine

• Scarcity

This term is used to cover all of the natural resources provided by nature and includes fields and forests, oil, gas, metals and other mineral resources.

• Land

• Soil

• Sand

• Space

This is the efforts of people needed to make products.

• Energy

• Time

• Skills

• Labour

This is the finance, machinery and equipment needed for the manufacture of goods.

• Budget

• Capital

• Money

• Cost

This is the skill and risk-taking ability of the person who brings the other resources together to produce a good or service.

• Enterprise

• Enterprising

• Enterpreneurs

Answer explanation

For example, the owner of a business. These people are called entrepreneurs.

In making choices and decision, we need to consider what we are giving up, to make sure it is not worth more to us than the option we are choosing.

Opportunity Cost is the term that defines the lost opportunity resulting from the choice of something else.

• True

• False

Business Objective is an aim or target that the business needs to achieve.

• True

• False