Business Activity 0.0 / 5 ? Business StudiesUnderstanding Business ActivityIGCSECIE Created by: LavanyaBCreated on: 14-03-17 12:17 Business Activity The process of producing goods and services to satisfy consumer needs 1 of 12 Need A good or service which is essential to living 2 of 12 Want A good or service which people would like, but is not essential for living 3 of 12 Economic Problem Unlimited wants cannot be met because there are limited factors of production. This Creates Scarcity 4 of 12 Factors of Production The resources needed to produce goods and services- land, labour, capital and enterprise 5 of 12 Scarcity There are not enough goods and services to meet the wants of the population 6 of 12 Opportunity Cost The benefit that could have been gained from and alternative use of the same resource 7 of 12 Specialisation People and business concentrate on what they are best at 8 of 12 Divison of Labour Production is divided into separate tasks and each worker does just on of those tasks 9 of 12 Consumer Goods Products which are sold to the final consumer. They can bee seen and touched, for example computers and food. 10 of 12 Consumer Services Non-tangible products such as insurance services, transport 11 of 12 Capital Goods Physical goods, such as machinery and delivery vehicles, used by other businesses to help produce other goods and services 12 of 12
Chapter 10: Government influences on business economic policy and regional policy 5.0 / 5 based on 1 rating
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