Grade 7 BEE Key Terms
Unit 1
Basic needs refer to those things that are essential for survival.
Enterprise is a business which takes risks to produce commodities so as to satisfy needs
and wants and make profits.
Entrepreneur refers to someone who organises and manages a business, with the aim of
making profit.
Goods are tangible, that is, they can be seen and touched.
Opportunity cost is the sacrifice which arises while making a choice.
Purchasing power or capacity to pay refers to the ability to buy goods and services.
Risk-taking means that entrepreneurs venture into a new business even if there is a risk
of
making losses.
Scarcity refers to the basic economic problem where wants are unlimited but resources
available
to satisfy them are limited.
Services are aids that satisfy those who consume them, though they cannot be touched,
that is, they are intangible.
Wants are those goods and services people would wish to have but which are not
essential for survival.