10 Questions
What is the primary purpose of business activity?
To produce goods or services that satisfy a need in the market
Why has specialization become more common?
Due to specialized technology, machinery, and increasing global competition
What is the difference between goods and services?
Goods are physical products, services are non-physical items
What does specialization lead to in terms of productivity?
Higher output per worker
What is the purpose of adding value to products or services in business activity?
To differentiate products from competitors and increase customer satisfaction
Which of the following is considered essential according to the text?
Shelter
What is the economic term for the loss of the next best alternative when making a decision?
Opportunity cost
In economics, which of the following represents factors of production?
Land, labour, capital, and Enterprise
What is the term used to describe desires which are non-essential according to the text?
Wants
When a producer decides to allocate all resources to producing electric vehicles, what represents the opportunity cost?
The loss of petrol vehicles production
Test your knowledge on the economic problem, scarcity, and factors of production which are essential resources that producers, consumers, workers, and governments make choices about. Understand the difference between needs and wants and how they impact businesses.
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