Understanding Business Activity

A good or service essential for living

The lack of sufficient products to satisfy the total wants of the population

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

These are unlimited

The resources need to produce goods or services. There are four and are in limited supply

The next best alternative given up by choosing another item

When the production process is split up into different tasks and each worker performs one of these tasks

An enterprise that combines factors of production to make products which satisfy the people’s wants

The aims or targets that a business works towards

The difference between the selling price of a product or service and the cost of bought in materials and components

Any person or group with direct interest in the performance and activities of a business