1.1 Business Activity:
a) Define Business activity?
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b) State three differences between needs and wants.
Needs
Wants
c) Use two different colours to identify needs and wants from the list.
food
haircut
Luxury car
rent
Mobile phone
Education
chocolate
Bottled
sparkling water
water
air
laptop
diamond
d) Match the following definitions with correct terms:
Sr #
Terms
Definitions
1
Opportunity cost
2
Scarcity
3
Needs
how to satisfy unlimited wants and needs with limited resources.
4
Wants
the value of the next-best alternative when a decision is made.
5
Business activity
6
Economic Problem
7
Factors of Production
something that is desired.
Land, labour, capital and enterprise
resources are only available in limited supply.
any activity related to the purpose of making a profit.
things that are essential for human survival.
e) Complete the following sentence, selecting the right word for each gap.
scarcity
goods
unlimited
limited
The economic problem is to meet ___________________ wants but only having ____________
resources to produce all the __________________ and services to meet these wants. This leads to
________________.
f)
g)
h)
i)