IGCSE Business Activity Quiz

What is NOT a factor of production?

• Labour

• Land

• Capital

• Equity

What is the business term used to describe the difference between the selling price of a product and the cost to make the product?

• Opportunity Cost

• Added Value

• Specialisation

• Scarcity

What is Opportunity Cost?

• The next best alternative given up by choosing another item.

• The unlimited supply of resources.

• The limited supply of resources.

• Satisfying customer needs.

What is a need?

• A product that makes a profit.

• A good or service consumers want to buy.

• A good or service essential of living.

• When consumers get what they require to satisfy their needs.

What helps businesses operate more efficiently?

• Specialisation

• Added value

• Supply

• Resources

What is a disadvantage of specialisation and division of labour?

• It's cheaper for the business.

• It's quicker to train workers.

• Workers may get bored doing just one job.

• Time is wasted.

What is the economic problem?

• Consumers wants change over time.

• There is too many product options.

• We do not have enough time to consume all the products offered.

• We do not have all the resources to satisfy all our wants.

A business has 1 million baht to invest in one of the three options: A new retail shop, upgrading all the ITC equipment in the company or developing a new product.

The business decides to invest the 1 million baht in developing a new product.

What is the opportunity cost for the business

• The new product development.

• Opening the retail shop and upgrading the business's technology.

• Not being able to sell the new product.

• There is no opportunity cost.

A hair salon decides to offer customers half price manicure when getting their hair done. The selling price of a hair cut is $15 and it costs the salon $6 per hair cut. The full cost of a manicure is $10 and costs the salon $2. The new total cost of a hair cut with manicure is $20.

What is the added value for the salon?

• $20

• $5

• $12

• $8

Scarcity in business and economics refers to:

• • A) the unlimited wants of humans.

• • B) the abundance of resources.

• • C) the limited availability of resources relative to unlimited human wants.

• • D) the efficient allocation of resources.