Chapter 1

Question 1

Entrepreneur

Answer 1

someone who organizes, operates and takes the risk for a new business venture.

Question 2

Want

Answer 2

A good or service that people would like to have, but which is not essential for living.

Question 3

Economic problem

Answer 3

Unlimited wants but limited resources - this creates scarcity.

Question 4

Scarcity

Answer 4

Lack of sufficient products to satisfy total wants of population.

Question 5

Opportunity cost

Answer 5

The next best time given up by choosing another.

Question 6

Factors of production

Answer 6

Resources needed to produce goods and services - land, labour, capital and enterprise.

Question 7

Business

Answer 7

An organization that combines factors of production to make goods and services to satisfy people wants and needs.

Question 8

Specialization

Answer 8

People and businesses concentrate on what they are best at.

Question 9

Division of labour

Answer 9

Production is split into separate tasks and each worker specialises in one task.

Question 10

Added value

Answer 10

The difference between a products selling price and the cost of bought in materials.