The Nature of Commerce - ASAP

Question 1

Consumer Definition: (in my own words)

Answer 1

Anybody who makes purchases to fulfil their needs and desires.

Question 2

Services Definition: (in my own words)

Answer 2

Services are things that someone will do for someone else in return for payment. People who provide services include hairdressers, doctors, dentists and personal trainers.

Question 3

Goods Definition: (in my own words)

Answer 3

Goods are tangible, manufactured items that can be grasped. For example, a television or a car.

Question 4

Durable goods Definition: (in my own words)

Answer 4

A product that can be utilised repeatedly. For example a car or television.

Question 5

Non-durable goods Definition: (in my own words)

Answer 5

Products that have a single use. For example, a sandwich or a litre of petrol.

Question 6

Opportunity cost Definition: (in my own words)

Answer 6

What a person sacrifices in order to fulfil a desire or a necessity. For example, say Jack got a part-time job helping at a local cafe. With his first pay cheque of a $100, he had to decide whether to purchase a new video game or to put the money towards buying a car when he left school. After much thought, he decided to put the money towards a car. His opportunity cost of doing this was the purchase of the video game.

Question 7

The four types of resources are:

Answer 7

• Land
• Labour
• Capital
• Enterprise

Question 8

Land Definition: (in my own words)

Answer 8

These assets are resources that are natural.

Question 9

Labour Definition: (in my own words)

Answer 9

The exertion of those who are engaged, both physically and mentally.

Question 10

Capital Definition: (in my own words)

Answer 10

Materials used to build other products.

Question 11

Enterprise Definition: (in my own words)

Answer 11

The potential to profitably integrate other resources like land, labour, and capital.