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IGCSE BUSINESS ACTIVITY

Total questions: 45

Worksheet time: 1hrs 2mins

Name
Class
Date
1.

A good or service that people would like to have, but is not required for living is called

a)

Want

b)

Needs

c)

Interest

d)

Desire

2.

A good or service that is essential for living is called

a)

Want

b)

Needs

c)

Interest

d)

Desire

3.

Scarcity is the main economic problem. What is scarcity?

a)

It is a situation that exists when there are unlimited wants and limited resources to produce the goods and services to satisfy those wants

b)

the next best alternative forgone by choosing another item

c)

is the physical and mental efforts put in by the workers in the production process

d)

is the finance, machinery and equipment needed for the production of goods and services

4.

Which of these is the best definition of the “Economic Problem”?

a)

People do not have enough money

b)

There are not enough resources to satisfy people’s wants

c)

There are too many items

d)

There are too many factors of production

5.

Which of the following is NOT a factor of production?

a)

oil reserves

b)

factory buildings

c)

skilled labor

d)

music CDs

6.

Division of labor can be defined as

a)

Workers specialize on just one task and become better at it

b)

Workers become specialist in all jobs

c)

All firms only have one worker

d)

No workers are employed as machines always do all the work

7.

One of the drawbacks to division of labor is that

a)

output and efficiency falls

b)

workers spend time on training to do several different jobs

c)

workers can become bored through concentrating on one job

d)

no machinery is used and this slows down production

8.

Which of the following is NOT the example of Capital

a)

Money

b)

Building

c)

Staff

d)

Machinery

9.

The next best alternative given up by choosing another item is the definition of?

a)

Scarcity

b)

Opportunity cost

c)

Purchase

d)

Business activity

10.

Land, labour, capital and enterprise are collectively known as

a)

Goods and services

b)

Business cycle

c)

Factors of production

d)

Output

11.

Which of the following is NOT a factor ofproduction?

a)

oil reserves

b)

factory buildings

c)

skilled labour

d)

a play station

12.

What might an entrepreneur risk when starting up a business? You may find more than one option. Tick all that apply...

a)

They might have invested their own personal savings

b)

Relationships with family & friends might suffer due to long hours

c)

Giving up a job / steady income

d)

Getting rich if the business does well

13.

________ is a good or service essential for living

a)

Want

b)

Desire

c)

Needs

d)

Factor of production

14.

Mineral resources are an example of the factor of production of_________

a)

land

b)

labor

c)

capital

d)

enterprise

15.

Oil is an example of capital

a)

True

b)

False

16.

Business are only owned by private individuals.

a)

True

b)

False

17.

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

a)

True

b)

False

18.

What are the factors of production for land

a)

wood

b)

chef

c)

factory

d)

farmers field

19.

What are the examples of labor

a)

Truck

b)

manager

c)

chef

d)

lorry

20.

What are the examples of capital? You may find more than one option

a)

the cash money invested by the owner

b)

wood

c)

a manager of a business

d)

trucks

21.

What is an 'entrepreneur'?

a)

A person in charge of the business strategy.

b)

A person who lends the funds to set up a new business venture.

c)

A person who organises, operates and takes the risk of a new business venture.

d)

A group of people in charge of creating the business plan of a new venture.

22.

What do you call a person, business or other organisation which buys goods or services from a business?

a)

Seller

b)

Customer

c)

Employee

d)

Employer

23.

Businesses need to carry out market research so that they can identify consumer__________ and ___________?

a)

wants and needs

b)

wants and feelings

c)

spending and budget

d)

income and needs

24.

Which of the following is NOT part of business activity?

a)

Making laws for the country

b)

Using resources

c)

Producing goods or services

d)

Trying to make a profit

25.

Which of the following is best described as a want rather than a need?

a)

Holiday

b)

Food

c)

A home

d)

Basic medicine

26.

The main output of an airline is .........

a)

A service

b)

A good

27.

The main output of a car manufacturer is ..........

a)

Goods

b)

Services

28.

How can a business increase added value?

4 lines
29.

The difference between the cost of raw material and the selling price of a product/service

a)

Added value

b)

Revenue

c)

Margin

d)

Mass consumption

30.

The difference between the selling price and the cost of production is known as

a)

Added value

b)

Revenue

c)

Profit Margin

d)

Mass consumption

31.

Division of Labour can be defined as ....................

a)

the breaking down of work into smaller units

b)

a condition in which one has to work to earn a living

32.

In Division of Labour,each worker handles a specific task

a)

True

b)

False

33.

What is Specialization?

a)

Becoming an expert in a particular craft or skill

b)

Production of more goods and services in a shorter time

34.

Which of these is an advantage of Division of Labour?

a)

It quickens the speed of work

b)

It wastes time and energy

35.

Which is not true about division of labour?

a)

Large scale production

b)

Requires less training

c)

Highly repetitive work

36.

Which of the following is a disadvantage of division of labour?

a)

Increased Flexibility of workers

b)

Reduced total cost of producing goods

c)

Repetitive jobs

37.

Specialization focuses on producing______________.

a)

a variety of activities or products.

b)

one particular kind of activity or product.

38.

What causes boredom in division of labour?

a)

Increased efficiency

b)

Doing the same work

c)

Less time required to complete work

39.

Land, labour, enterprise and capital are all examples of (a)   in the production process.

40.

What does "Jack of all Trades" mean?

a)

a person named Jack

b)

a person who trades with Jack

c)

a person who does multiple tasks

d)

a person who trades with everyone

41.

How can you use division of labor at home?

a)

each of my family members can make their own sandwich

b)

mom can make sandwiches while we watch TV

c)

mom gets the bread on plates, brother puts mayo, sister puts ham, dad puts cheese, and I close the sandwich and add chips

d)

mom makes sandwiches, dad gets drinks, and siblings and I relax

42.

In division of labour, each worker handles a specific task

a)

True

b)

False

43.

Kathy, Sue, and Christina own a bakery. Each day all three women spend hours baking cakes, decorating cakes, and packaging cakes. Which economic concept would help them become more efficient?

a)

Scarcity

b)

Productivity

c)

Specialization

d)

Interdependence

44.

The iPhone, designed in the United States and produced with the help of programmers in India and laborers in China and in the Democratic Republic of the Congo, was used to represent which of the following sociological concepts?

a)

division of labor

b)

mechanization

c)

outsourcing

d)

weak ties

45.

Which of the following is not an advantage of Division of Labour?

a)

Raising living standards

b)

Resources are saved

c)

Greater risk of unemployment

d)

Raising labor productivity