WorksheetsIGCSE Business (0264) 1.1 The Nature of Business Activity Quiz
Total questions: 15
Worksheet time: 8mins
Which of the following is an example of land as a factor of production?
A factory worker
Office computers
A gold mine
A business manager
Which factor of production refers to the human effort used in production?
Capital
Labour
Land
Enterprise
Which of the following best describes capital in business?
Money used to buy goods
Natural resources used in production
Machinery and equipment used to produce goods
The risk taken by entrepreneurs
Which of these best represents enterprise?
A loan from the bank
A manager who takes risks to organize resources and start a business
Land used for farming
Factory machines
Which of the following combines and organizes the other three factors of production?
Labour
Land
Capital
Enterprise
What is meant by adding value?
Increasing the price of raw materials
The difference between the selling price and the cost of production
Reducing production costs
Increasing the amount of labour used
Which of the following is NOT a way to increase added value?
Improving product quality
Creating a strong brand image
Raising selling prices without improving the product
Offering additional services such as free delivery
A business buys raw cotton for $5 and sells a shirt made from it for $25. What is the added value?
$20
$25
$5
$30
How can a restaurant add value to its meals?
Buying cheaper ingredients
Training chefs to prepare food more attractively
Paying staff lower wages
Reducing portion sizes
Why is adding value important to a business?
It lowers the costs of production
It allows the business to make a profit and remain competitive
It reduces the need for enterprise
It ensures unlimited resources
What is meant by opportunity cost?
The cost of employing extra workers
The benefit lost from the next best alternative when a choice is made
The cost of producing a product
The total profit a business makes
If a business decides to use land to build a factory, the opportunity cost is:
The money spent on construction
The alternative use of the land that has been given up
The wages paid to workers
The interest on loans taken
A student has $10. They can either buy a new book for school or go to the cinema with friends. If they choose the book, what is the opportunity cost?
The $10 spent
The enjoyment of watching the movie with friends
The cost of producing the book
The time taken to read the book
A government chooses to spend more money on building hospitals instead of roads. The opportunity cost is:
The wages of hospital staff
The money collected from taxes
The roads that could have been built
The cost of medical equipment
Why is the concept of opportunity cost important in decision-making?
It ensures unlimited resources are available
It helps businesses and individuals make more informed choices
It reduces the risks of enterprise
It guarantees maximum profit
