Unit 1-What is Business Activity?

What are needs?

• Needs are luxuries that enhance comfort.
• Needs are essential requirements for survival and well-being.
• Needs are optional desires that can be ignored.
• Needs are temporary wants that change over time.

What are wants?

• Wants are non-essential desires for goods or services.

• Wants are the same as basic necessities.
• Wants are mandatory requirements for living.

• Wants are essential needs for survival.

What does 'scarcity' mean in business?

• Scarcity is the concept of having enough resources to satisfy all consumer needs.
• Scarcity refers to an abundance of resources available for consumers.
• Scarcity means the ability to produce unlimited goods and services.
• Scarcity means limited resources available to meet unlimited consumer demands.

What does 'factors of production mean'?

• Factors of production are the resources used to produce goods and services, including land, labor, capital, and entrepreneurship.
• Factors of production are the laws and regulations governing businesses.
• Factors of production are the final goods sold to consumers.
• Factors of production refer to the financial profits of a business.

Opportunity cost means...

• the value of the next best alternative forgone when making a decision
• the total cost of all alternatives considered
• the benefit gained from the chosen option
• the cost of production for a good or service

What are the four factors of production?

• Goods, Services, Money, Trade

• Workforce, Infrastructure, Investment, Innovation
• Land, Labor, Capital, Entrepreneurship

• Resources, Skills, Technology, Management

What does 'business specialisation' mean?

• Business specialisation refers to diversifying into multiple markets.
• Business specialisation means focusing on a specific area a business has expertise in.

• Business specialisation means offering a wide range of products.
• Business specialisation is about reducing focus on customer needs.

Which one of these is NOT an advantage of the division of labor?

• Increased efficiency and output

• Reduced job satisfaction
• Quicker and cheaper to train workers

Which one of these is NOT a disadvantage of the division of labor?

• Workers are less skilled because they are only able to do one part of the production process.

• If one part of the production line breaks/stops, then the whole production line stops.

• Higher chances of worker burnout due to boring and repetitive tasks

• Increased efficiency and productivity

What is the formula for 'added value'?

• Added Value = Total Revenue + Cost of Inputs
• Added Value = Selling price - Cost of materials

• Added Value = Cost of Inputs - Total Revenue
• Added Value = Total Revenue / Cost of Inputs