AS Business BS1 Topic #1

 Aims and objectives of private and public enterprises. Needs and wants. Opportunity cost. 

What are needs and wants?

Needs are essential for living (these change over time and differ for different cultures and countries), where as wants are what people would like to have, but are not essential to their survival. People's wants are unlimited. A need is food, water and shelter where as a want is something such as a phone, car or bicycle.

What is an opportunity cost?

Scarcity = unlimited wants and limited resource. This eventually leads to opportunity cost which is the benefit, value or profit of something which must be given up in order to acquire…