WorksheetsUnderstanding business activity
Total questions: 20
Worksheet time: 10mins
Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.
Tertiary Sector
Primary Sector
Secondary Sector
The economic problem
Land, labour, capital and enterprise are collectively known as
Goods and services
Business cycle
Factors of production
Output
Which of these is the best definition of the ‘economic problem’?
People do not have enough money.
There are not enough resources to satisfy people’s wants.
There are too many factors of production.
The amount of something produced by a person, machine or industry.
Which of the following is NOT a factor of production?
oil reserves
factory buildings
skilled labour
a play station
Which is a disadvantage of 'division of labour'?
workers and trained in one task & specialised in this, increasing efficiency.
Quicker & cheaper to train workers as fewer skills need to be taught.
Workers can become bored from doing just one job - efficiency might fall.
Less time is wasted moving from one workbech to another.
What is 'added value'?
is the next best alternative given up by choosing another item.
is the difference between the selling price of a product and the cost of bought-in materials and components.
It's a good or service essential for living.
is the lack of sufficient products to fulfil the total wants of the population.
A good or service essential for living
needs
wants
factors of productioin
scarcity
A good or service which people would like to have, but it is not essential for living.
needs
wants
scarcity
factors of production
lack of sufficient products to fulfill the total wants of the population
economic problem
scarcity
factors of production
needs
There exist unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity
economic problem
wants
needs
scarcity
The next best alternative given up by choosing another item
Opportunity cost
Businesses
Economic problem
factors of production
When the production process is split up into different tasks and each worker performs one of these tasks. It is a form of specialisation
Division of labour
Specialisation
Added value
Businesses
Combine factors of production to make products (goods and services) which satisfy people’s wants
Specialisation
Division of labour
Businesses
Added value
