Business Studies Gr8

What’s the main economic problem?

• Needs

• Wants

• Limited resources

• Unlimited wants and limited resources

Needs are..

• Things we like to have

• Things essential for survival

• Things we want

• Mobile Phone

The four factors of production are

• Land, capital, employees and owner

• Land, labour, Capital and Entrepreneur

• Manager, labour, entrepreneur and natural resources

• Land, labour, capital and entrepreneurship

Two types of natural resources are

• Economic resources and raw materials

• Natural resources and man-made resources

• Renewable and non-renewable resources

Opportunity cost is

• A choice

• Wants

• The next best alternative forgone in terms of a choice made

• Selection between two or more commodities

Economic goods are divided into

• Consumer goods and producer goods

• Durable consumer goods and Non-durable consumer goods

• Public goods and Merit goods

• Economic goods and private goods

Some examples or Internal stakeholders are;

• Employees, managers, suppliers and government

• Managers, owners, employees and supervisors

• Government, employees, owner, investors

• Employees, managers, investors and government

Assets are divided into

• Current assets

• Non-current assets

• Capital

• Non-current and current liabilities

The accounting equation is:

• Assets=capital + liabilities

• Liabilities + assets= capital

• Capital + assets = liabilities

• Capital = assets + liabilities

Three types or economies are

• Command economy

• Mixed exonomy

• Market economy

• Common economy