Business IGCSE Definitions to Learn S1Ch01

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

______________ there exist unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity.

________________ are those resources needed to produce goods or services.

__________ is the lack of sufficient products to fulfill the total wants of the population.

____________ is the next best alternative given up by choosing another item.

__________ occurs when people and businesses concentrate on what they are best at.

_______________ is when the production process is split up into different tasks, and each worker performs one of these tasks. It is a form of specialization.

____________ is combine factors of production to make products (goods and services) that satisfy people’s wants.

______________ is the difference between the selling price of a product and the cost of bought-in materials and components.

How to add value to products and services?

• Increase selling price but keep the cost of materials the same.

• Decrease selling price and increase the cost of materials.

• Branding

  Customer Service

  Adding features

  Quality

• Reduce the cost of materials but keep the price the same.