Understanding Business Activity 0.0 / 5 ? Business StudiesUnderstanding Business ActivityGCSECIE Created by: Thomas RathboneCreated on: 15-12-14 16:48 What is a need? A good or service essential for living 1 of 5 What is a want? A good or service which people would like to have but which is not essential for living 2 of 5 What is meant by the Economic Problem? There exists unlimited wants but limited resources to produce the goods and services to satisfy those wants. This creates scarcity. 3 of 5 What is meant by scarcity? Is the lack of sufficient products to fulfil the total wants of the population. 4 of 5 What is Opportunity cost? Is the next best alternative given up by choosing another item 5 of 5
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