lesson 1

Question 1

define good

Answer 1

a physical product

Question 2

define service

Answer 2

a non physical product

Question 3

define Need

Answer 3

goods and services that are essential for living

Question 4

define want

Answer 4

goods and services that are not essential for living

Question 5

whats the economic problem

Answer 5

scarcity and opportunity cost

Question 6

define scarcity

Answer 6

our needs and wants are unlimited but our recourses are limited

Question 7

define opportunity cost

Answer 7

the next best choice not taken

Question 8

what are the factors of production

Answer 8

capital , enterprise , land , labour

Question 9

define capital

Answer 9

money invested in the business by the owner

Question 10

define enterprise

Answer 10

the ability of an entrepreneur has , to take risks and decisions to run a business

Question 11

define land

Answer 11

the ground a business stands on

Question 12

define labour

Answer 12

workers needed in production

Question 13

what is meant by the division of labour

Answer 13

where the production process is divided into parts and each worker does a certain part

Question 14

what is meant by specialisation of labour

Answer 14

where a worker becomes a expert in a particular profession

Question 15

what is the advantage of specialisation of labour to the worker

Answer 15

the worker will earn more money and he’ll be more skilled so there’s a high chance of promotion

Question 16

whats the disadvantage of specialisation to the worker

Answer 16

the worker will become bored and stressed and mono skilled thus increasing the risk of job insecurity

Question 17

advantage of specialisation to the company

Answer 17

higher quality and higher quantity could be produced

Question 18

Disadvantage of specialisation to the company

Answer 18

lower quality could be produced since the workers bored and if one worker becomes absent production will stop

Question 19

whats a primary sector

Answer 19

the extraction of raw material from the earth or mine example farm

Question 20

what is a secondary sector

Answer 20

the factory that processes the raw materials into final goods

Question 21

what is a tertiary sector

Answer 21

company that provides these goods and services to final customers example clothing store , cinema , daycare center