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Chapter 1 Business Activity

Total questions: 10

Worksheet time: 2mins

Name
Class
Date
1.

What is defined as a good or service essential for living?

a)

A need

b)

A want

c)

A luxury

d)

A desire

2.

Which term describes a good or service that people would like to have but is not essential for living?

a)

A need

b)

A want

c)

A necessity

d)

A requirement

3.

What is the economic problem as defined in the learning material?

a)

Unlimited resources and limited wants

b)

Limited resources and unlimited wants

c)

Unlimited resources and unlimited wants

d)

Limited resources and limited wants

4.

Which of the following is NOT a factor of production?

a)

Land

b)

Labour

c)

Technology

d)

Capital

5.

What does scarcity refer to in economic terms?

a)

Abundance of resources

b)

Lack of sufficient products to fulfill wants

c)

Surplus of goods

d)

Unlimited wants and resources

6.

What is the definition of "Opportunity cost"?

a)

The cost of producing one more unit of a good

b)

The next best alternative given up by choosing another item

c)

The total cost of all resources used in production

d)

The financial cost of an investment

7.

What does "Specialisation" refer to?

a)

The process of creating a new product

b)

The concentration on what people and businesses are best at

c)

The division of tasks among employees

d)

The increase in production costs

8.

What is "Division of labour"?

a)

The process of reducing the workforce

b)

The allocation of resources to different sectors

c)

The splitting of the production process into different tasks

d)

The increase in the number of employees

9.

What do businesses do according to the definition provided?

a)

They focus on reducing costs by minimizing production.

b)

They combine factors of production to make products that satisfy people's wants.

c)

They specialize in a single product to maximize efficiency.

d)

They outsource all production to reduce expenses.

10.

What is "Added value" ?

a)

The total cost of production including labor and materials.

b)

The difference between the selling price of a product and the cost of bought-in materials and components.

c)

The profit margin after all expenses are deducted.

d)

The increase in value due to marketing and advertising efforts.