Ch.1- Business Activity Flashcards

1
Q

Business Activity

A

The process of producing goods and services to satisfy consumer demand

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2
Q

Need

A

A good or service which is essential to living

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3
Q

Want

A

A good or service which people would like, but is not essential for living.

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4
Q

Economic problem

A

The basic problem of scarcity; unlimited wants cannot be met because there are limited factors of production.

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5
Q

Factors of production

A

The resources needed to produce goods and services- land, labour, capital and enterprise.

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6
Q

Scarcity

A

There are not enough goods and services to meet the wants of the population.

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7
Q

Opportunity cost

A

The benefit that could have been gained from an alternative use of the same resource.

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8
Q

Specialisation

A

People and businesses concentrate on what they are best at.

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9
Q

Division of labour

A

Production is divided into separate tasks and each employee does just one of those tasks.

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10
Q

Consumer goods

A

Products which are sold to the final consumer. They can be seen and touched.

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11
Q

Consumer services

A

Non-tangible products such as insurance services, transport.

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12
Q

Capital goods

A

Physical goods, such as machinery and delivery vehicles, used by other businesses to help produce other goods and services.

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