IGCSE Business Studies

A good or service that people would like to have, but is not required for living is called

• Want

• Needs

• Interest

• Desire

A good or service that is essential for living is called

• Want

• Needs

• Interest

• Desire

Scarcity is the main economic problem. What is scarcity?

• It is a situation that exists when there are unlimited wants and limited resources to produce the goods and services to satisfy those wants

• the next best alternative forgone by choosing another item

• is the physical and mental efforts put in by the workers in the production process

• is the finance, machinery and equipment needed for the production of goods and services

Which of these is the best definition of the “Economic Problem”?

• People do not have enough money

• There are not enough resources to satisfy people’s wants

• There are too many items

• There are too many factors of production

Which of the following is NOT a factor of production?

• oil reserves

• factory buildings

• skilled labor

• music CDs

Division of labor can be defined as

• Workers specialize on just one task and become better at it

• Workers become specialist in all jobs

• All firms only have one worker

• No workers are employed as machines always do all the work

One of the drawbacks to division of labor is that

• output and efficiency falls

• workers spend time on training to do several different jobs

• workers can become bored through concentrating on one job

• no machinery is used and this slows down production

Which of the following is NOT the example of Capital

• Money

• Building

• Staff

• Machinery

Which of the following is the example of Entrepreneurship

• Staff

• Worker

• Security

• Manager

The next best alternative given up by choosing another item is the definition of?

• Scarcity

• Opportunity cost

• Purchase

• Business activity