Business studies Section 1 : Understanding business activity

Define opportunity cost

• Unlimited wants cannot be met because there are limited factors of production .

• they are not in a goods and services to meet the wants of the population

• the benefit that could have been gained from an alternative use of the same resource

• The resources needed to produce goods and services .

A need is a good or service essential for living .

• True
• False

the purpose of ______________ is provide consumers.

Two factors of production are:

• Enterprise, Labour

• Consumer services, Consumer goods

• Need, Want

• Capital goods, consumer goods

Consumer goods are non-tangible products.

Ex: Insurance services and transport.

• True
• False

Businesses produce different types of goods and services, these are known as:

The purpose of business activity is:

• Only giving free services

• To see consumers flourish

• Only selling products

• To provide consumers

Scarcity is when there are a lot of goods and services to meet the wants of the population.

• True
• False

Specialisation: People and businesses concentrate at what they are best at

• True
• False

Factors of Production are ________________