What is defined as a good or service essential for living?

• A need

• A want

• A luxury

• A desire

Which term describes a good or service that people would like to have but is not essential for living?

• A need

• A want

• A necessity

• A requirement

What is the economic problem as defined in the learning material?

• Unlimited resources and limited wants

• Limited resources and unlimited wants

• Unlimited resources and unlimited wants

• Limited resources and limited wants

Which of the following is NOT a factor of production?

• Land

• Labour

• Technology

• Capital

What does scarcity refer to in economic terms?

• Abundance of resources

• Lack of sufficient products to fulfill wants

• Surplus of goods

• Unlimited wants and resources

What is the definition of "Opportunity cost"?

• The cost of producing one more unit of a good

• The next best alternative given up by choosing another item

• The total cost of all resources used in production

• The financial cost of an investment

What does "Specialisation" refer to?

• The process of creating a new product

• The concentration on what people and businesses are best at

• The division of tasks among employees

• The increase in production costs

What is "Division of labour"?

• The process of reducing the workforce

• The allocation of resources to different sectors

• The splitting of the production process into different tasks

• The increase in the number of employees

What do businesses do according to the definition provided?

• They focus on reducing costs by minimizing production.

• They combine factors of production to make products that satisfy people's wants.

• They specialize in a single product to maximize efficiency.

• They outsource all production to reduce expenses.

What is "Added value" ?

• The total cost of production including labor and materials.

• The difference between the selling price of a product and the cost of bought-in materials and components.

• The profit margin after all expenses are deducted.

• The increase in value due to marketing and advertising efforts.