Economic Concepts in Business Activity

Needs are essential for survival, wants are desired but not essential.

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

Land, Labour, Capital, Enterprise.

<p>Opportunity cost is the next best alternative given up by choosing another item.</p> Signup and view all the answers

<p>Specialization allows people and businesses to focus on what they are best at.</p> Signup and view all the answers

<p>Division of labor is when production is split into different tasks, and each worker performs one of these tasks.</p> Signup and view all the answers

<p>Increased productivity and efficiency</p> Signup and view all the answers

<p>Boredom and burnout</p> Signup and view all the answers

<p>Added Value = selling price - total cost</p> Signup and view all the answers

<p>Increase selling price by improving quality or reduce cost of materials</p> Signup and view all the answers

<p>Primary Sector, Secondary Sector, Tertiary Sector</p> Signup and view all the answers

<p>Decline in the importance of the secondary sector</p> Signup and view all the answers