Year 7 IGCSE Business Studies Quiz 3

What is the key difference between needs and wants?

• Needs are necessary for survival, while wants are not.

• Needs are only about money, while wants are about emotions.

• Needs are always free, while wants are expensive.

• Needs and wants are the same.

Which of the following best describes scarcity?

• A lack of interest in buying goods.

• Unlimited resources to satisfy all wants.

• Limited resources to meet unlimited wants.

• The high cost of luxury goods.

What does opportunity cost refer to?

• The amount of money spent on a purchase.

• The next best alternative given up when making a decision.

• The total value of all alternatives.

• The cost of a product in the future.

How can a business increase the value of its products?

• By reducing quality to cut costs.

• By using cheap materials to maximize profit.

• By improving branding and customer service.

• By focusing only on production.

Which of the following is an example of adding value?

• Selling a basic T-shirt at the same price.

• Adding a logo to a T-shirt and selling it at a higher price.

• Keeping the same price for a product over the years.

• Buying raw materials at a discount.

Specialization in a business means:

• Employees doing all tasks to save time.

• Focusing on one specific task or area to improve efficiency.

• Reducing the workforce to save money.

• Stopping production of goods.

Which of these is an advantage of specialization?

• Increases boredom among employees.

• Leads to faster and more efficient production.

• Makes tasks more difficult to manage.

• Reduces the quality of goods.

What is the primary sector concerned with?

• Manufacturing goods.

• Providing services to customers.

• Extracting raw materials like farming or mining.

• Selling products to customers.

Which sector includes industries like education and healthcare?

• Primary sector

• Secondary sector

• Tertiary sector

• Quaternary sector

What is a sole proprietorship?

• A business owned and run by one person.

• A business owned by two or more partners.

• A large multinational corporation.

• A government-run business.