1. Business activity Flashcards
1
Q
What are the factors of production?
[4]
A
Land
Labour
Capital
Enterprise
2
Q
Define Need
A
Good or a service that is essential for living
3
Q
Define Want
A
Good or service that people would like but is not essential for living
4
Q
What is the basic economic problem?
A
Humans want everything but resources are limited
5
Q
Define cost?
A
The next best alternative given by choosing another item
6
Q
Define specialization
A
When people and businesses concentrate on what they are best at
7
Q
Define added value
A
The difference between the selling price of a products the cost bought in materials and components.
8
Q
Why is added value important?
A
Sales revenue is greater than the cost of materials bought in by the business
