Understanding Business Activity. Definitions you need to know under the topic business Activity. 0.0 / 5 ? Business StudiesBusiness Activity IGCSECIE Created by: LukusashiCreated on: 05-05-14 15:07 A need? A need or a good or service essential for living. 1 of 7 A want? A want is a good or service which people would like to have, but which is not essential for living. Peoples wants are unlimited. 2 of 7 The economic problem There exist unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity. 3 of 7 Factors of production These are resources needed to produce goods or services. there are four factors of production and they are in limited supply 4 of 7 The factors of production Land, Labour, Capitol and Enterprise 5 of 7 Scarcity Scarcity is the lack of sufficient products to fulfil the total wants of the population. 6 of 7 Opportunity cost This is the next best alternative given up by choosing another item. 7 of 7
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