Business activity

Business activity

Needs and wants

• Need-good/service essential for living
• Want-good/service which people would like to have but not essential
• When people have unlimited wants and limited resources(needs), it leads to scarcity

Factors of production

• Land (natural resources-oil, gas metals etc.)
• Labour (no. of people available to make products)
• Capital (machinery and equipment)
• Enterprise (risk-taking ability of a person who brings other factors…