business studies unit 1

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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

Other cards in this set

Card 2

Front

is good or service which people would like to have, but is not essential for living.

Back

wants

Card 3

Front

there exists unlimited wants but limited resources to produce the goods and services to satisfy the wants. this creates scarcity.

Back

Preview of the back of card 3

Card 4

Front

are those resources needed to produce goods or services. there are four factors of production and they are in limited supply.

Back

Preview of the back of card 4

Card 5

Front

is the lack of sufficient products to fulfill the total wants of the population

Back

Preview of the back of card 5
View more cards

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