Understanding Business Activity
- Created by: DanielSmart
- Created on: 06-04-15 16:54
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- Business Activity
- The process of producing goods and services to satisfy consumer demand
- Need: a good or service which is essential to living
- Want: a good or service which people would like, but is not essential for living
- Economic Problem: unlimited wants cannot be met because there are limited factors of production. This creates Scarcity.
- Factors of production: the resources needed to produce goods and services - Land, Labour, Capital, Enterprise.
- Enterprise: people prepared to take the risk of setting up businesses - they are known as entrepreneurs
- Capital: machinery, equipment and finance needed for production of goods and services
- Enterprise: people prepared to take the risk of setting up businesses - they are known as entrepreneurs
- Labour: the number of people available to work
- Capital: machinery, equipment and finance needed for production of goods and services
- Division of Labour: production is divided into seperate tasks and each worker does just one of those taks.
- Capital: machinery, equipment and finance needed for production of goods and services
- Land: all natural resources such as minerals, ores, fields, oils and forests.
- Labour: the number of people available to work
- Division of Labour: production is divided into seperate tasks and each worker does just one of those taks.
- Labour: the number of people available to work
- Scarcity: there are not enough goods and services to meet the wants of the population.
- Factors of production: the resources needed to produce goods and services - Land, Labour, Capital, Enterprise.
- Economic Problem: unlimited wants cannot be met because there are limited factors of production. This creates Scarcity.
- Consumer Goods: products which are sold to the final consumer. They can be seen and touched, for example computers and food.
- Consumer Services: non tangible products such as insurance services, transport.
- Consumer Goods: products which are sold to the final consumer. They can be seen and touched, for example computers and food.
- Consumer Goods: physical goods, such as machinery and delivery vehicles, used by other businesses to help produce other goods and services
- Consumer Services: non tangible products such as insurance services, transport.
- Consumer Services: non tangible products such as insurance services, transport.
- Land: all natural resources such as minerals, ores, fields, oils and forests.
- Scarcity: there are not enough goods and services to meet the wants of the population.
- Opportunity Cost: the benefit that could have been gained from an alternative use of the same resource.
- Specialisation: people and businesses concentrate on what they are best at
- The process of producing goods and services to satisfy consumer demand
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