Business Essentials: Understanding Products, Needs, and Economic Concepts

The video tutorial explains the concept of business as a combination of factors of production to create goods and services. It differentiates between needs and wants, highlighting that needs are essential for living while wants are not. The tutorial addresses the economic problem of scarcity, where unlimited wants face limited resources. It describes the four factors of production: land, labor, capital, and enterprise. Finally, it introduces the concept of opportunity cost, which involves choosing between alternatives due to limited resources.

What is the primary purpose of a business?

• To eliminate competition

• To create a monopoly

• To increase government revenue

• To combine factors of production to make products

Which of the following is an example of a tangible product?

• Banking

• Shoes

• Tourism

• Insurance

What is a need according to the business context?

• Water

• A designer watch

• A luxury car

• A vacation

Which of the following best describes a want?

• Provided by nature

• Limited and necessary

• Unlimited and based on personal taste

• Essential for survival

What is the main cause of scarcity in economics?

• Excessive production

• Unlimited resources

• Limited wants

• Limited resources and unlimited wants

Which of the following is NOT a factor of production?

• Capital

• Land

• Labor

• Technology

What role does an entrepreneur play in business?

• Manufacturing goods

• Consuming products

• Taking risks and organizing production

• Providing natural resources

What is opportunity cost?

• The cost of producing a product

• The profit made from a business

• The next best alternative given up

• The total cost of all resources used

If a person chooses to buy a new phone instead of going on a vacation, what is the opportunity cost?

• The cost of the vacation

• The time spent deciding

• The vacation

• The cost of the phone

For a government, if they choose to build a new school instead of a new road, what is the opportunity cost?

• The education provided

• The new school

• The new road

• The cost of construction