Business Definitions 2023

Question 1

What is a Need?

Answer 1

A need is something necessary for survival

Question 2

What is a Collective want?

Answer 2

A collective want is a shared desire or goal among a group of people.

Question 3

What is an Individual want?

Answer 3

Something that is desired by a particular person

Question 4

What is a Consumer good?

Answer 4

A Consumer good is a product/service for personal use. E.g. Food, clothing, entertainment.

Question 5

What is a Capital good?

Answer 5

Something that is used in production such as machinery or buildings. Its something businesses use to make things.

Question 6

What is a Service?

Answer 6

A service is something someone does that benefits another.

Question 7

What is a Developing Economy?

Answer 7

A developing economy includes countries that are not performing well in industrialisation, technology, and business trade.

Question 8

What is a Command Economy?

Answer 8

In a command economy the central government dictates the level of production of goods and controls their distribution and prices.

Question 9

What is a Modern Market Economy?

Answer 9

This is where people/businesses trade goods/services through markets, based on supply/demand, with little government intervention.

Question 10

What is a Leakage?

Answer 10

A leakage in business is a loss of funds from the circular flow of income, such as savings, taxes or imports.

Question 11

What is an Injection?

Answer 11

An injection is a source of funds (e.g. investment, government spending) that enters the circular flow of income.

Question 12

What is the Household Sector

Answer 12

In the circular flow of income, the household sector is the primary source of consumption expenditure and labour supply.

Question 13

What is the Production Sector?

Answer 13

The sector that creates goods and services through manufacturing, agriculture, and construction activities.

Question 14

What is Primary Production?

Answer 14

Primary production is the agricultural activities, aquaculture, fisheries and similar processes resulting in raw food materials.

Question 15

What is Secondary Production

Answer 15

Secondary production is the manufacturing of goods rather than producing raw materials

Question 16

What is Tertiary Production

Answer 16

Tertiary production refers to the production of services rather than goods.

Question 17

What is Quaternary Production

Answer 17

Quaternary production refers to knowledge-based services, such as research, consulting, and information technology.

Question 18

What is Demand?

Answer 18

The demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time.

Question 19

What is the Supply?

Answer 19

The supply is the amount of a resource that consumers purchase

Question 20

What is Surplus/Oversupply

Answer 20

The surplus is the amount of an asset or resource that exceeds the portion that’s actively utilised.

Question 21

What is Shortage/Undersupply

Answer 21

Shortage is when the quantity demanded exceeds the quantity supplied

Question 22

Define Equilibrium

Answer 22

Equilibrium is the price where the demand and the supply meet on the price mechanism model.

Question 23

What is the Economic problem?

Answer 23

Unlimited wants and limited resources or ‘relative scarcity’

Question 24

Is a Fisherman a Primary, Secondary, Tertiary or Quaternary?

Answer 24

Primary

Question 25

Is a Musician a Primary, Secondary, Tertiary or Quaternary?

Answer 25

Tertiary

Question 26

Is a Lawyer a Primary, Secondary, Tertiary or Quaternary?

Answer 26

Tertiary

Question 27

What is the Opportunity cost?

Answer 27

The cost of the best alternative

Question 28

What is the difference between imports and exports?

Answer 28

Imports are goods or services brought into a country from abroad, while exports are goods or services produced domestically and sold to foreign countries.