business studies unit 1 0.0 / 5 ? Business Studies-IGCSECIE Created by: jenanshantiCreated on: 09-03-18 12:46 needs is a good or service essential for living. 1 of 10 wants is good or service which people would like to have, but is not essential for living. 2 of 10 Economic problem there exists unlimited wants but limited resources to produce the goods and services to satisfy the wants. this creates scarcity. 3 of 10 factors of production are those resources needed to produce goods or services. there are four factors of production and they are in limited supply. 4 of 10 scarcity is the lack of sufficient products to fulfill the total wants of the population 5 of 10 opportunity cost is the next best alternative given up by choosing another item. 6 of 10 specialisation occurs when businesses concentrate on what they are best at. 7 of 10 division of labour is when the production process is split up into different tasks and each worker performs one of these tasks. it is a form of specialization. 8 of 10 businesses combine factors of production to make products (goods or services) which satisfy peoples wants. 9 of 10 added value is the difference between the selling price of a product and the cost of bought in materials and components. 10 of 10
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