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Business Activity

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

________ is a good or service essential for living

a)

Want

b)

Desire

c)

Needs

d)

Factor of production

2.

Mineral resources are an example of the factor of production of_________

a)

land

b)

labor

c)

capital

d)

enterprise

3.

When making a choice the next best alternative we give up is referred to as__________

a)

factor of production

b)

opportunity cost

c)

scarcity

d)

specialisation

4.

If one worker is absent from the production line and no one else can do their job, this is a disadvantage of______

a)

added value

b)

there being four factor of production

c)

people having unlimited wants

d)

division of labor

5.

A business that makes ice cream buys ingredients at a cost of $1 per ice-cream. It spends $1000 on expenses and $200 per day on wages. The ice cream sells for $4 each and the business makes 1000 ice creams per day. How much is the added value of each ice cream?

a)

$1.80

b)

$3.00

c)

$2.00

d)

$2.50

6.

People have limited wants

a)

True

b)

False

7.

Scarcity results from limited resources and limited wants

a)

True

b)

False

8.

Oil is an example of capital

a)

True

b)

False

9.

Business are only owned by private individuals.

a)

True

b)

False

10.

Added value can be increased by raising prices

a)

True

b)

False

11.

All businesses combine the factors of production to make products that satisfy people's wants

a)

True

b)

False

12.

Added value does not include profit

a)

True

b)

False

13.

What are the factors of production for land

a)

wood

b)

chef

c)

factory

d)

farmers field

14.

What are the examples of labor

a)

Truck

b)

manager

c)

chef

d)

lorry

15.

What are the examples of capital

a)

the owner of sole trader

b)

wood

c)

a manager of a business

d)

trucks

16.

The economic problem exist because people have unlimited (a)   .

17.

There are never enough (a)   to produce the goods and services to satisfy these wants.

18.

_________of labour is when the production process is split up into different tasks.

a)

Adding

b)

Division

c)

Reduce

d)

Hire

19.

Choice is necessary when resources are scarce. This leads to_________

a)

Opportunity cost

b)

limited supply

c)

specialization

d)

added value

20.

Which one is the advantage of division labor?

a)

workers may leave their jobs because they are bored

b)

If a worker is absent others workers do not do their job so production may stopped

c)

workers only do one job so is quicker and cheaper to train

d)

workers only do monotonous job and leads to a lack of motivation and lower efficiency