Basic Concepts In Business Studies PDF

BASIC CONCEPTS IN BUSINESS STUDIES  Starter What are resources  Lesson objectives To know the meaning of basic concepts in economics. To understand the reason why resources are scarce. What is the difference between needs and wants?  Need s Needs are...

BASIC CONCEPTS IN BUSINESS STUDIES  Starter What are resources  Lesson objectives To know the meaning of basic concepts in economics. To understand the reason why resources are scarce. What is the difference between needs and wants?  Need s Needs are things that are necessary for your survival. They are things you can't do without.  WANTS Are things you would like to have, they are not absolutely necessary for your survival, but it would be a good thing to have them. NEED-WANT QUIZ 1) Is a house a 4) How about medicine? Want or want or a need? need? Want oWant Need Need 5) Finally, what about school? 2) Is a car a Want or need? want or a Want need? Need Want Need 3) What about a CD player? Want or need? Want Need  Scarcity Scarcity means limited resources used in satisfying unlimited human wants. That is, human wants are unlimited but the resources that are used in producing them are not enough  TASK From the video clip: Identify the three concepts identified in the video. Define each of the concepts as explained in the video. Relate the concepts to your daily life. After you have finished, think how this relates to the concept of scarcity, choice, and opportunity cost.  Choice Choice is the act of selecting among many unlimited wants. For example if we choose to use up scarce resources in the production of cars those same resources cannot be used to produce food. This opportunity is forgone  Opportunity Cost Opportunity cost – is the cost of the next best alternative foregone. $100 The opportunity cost of taking action is what we could have got if we had taken an alternative action Food? Entertainment? Clothing? If you have a limited amount of money you have to make a choice as to what you spend it on  Mini Plenary Worksheet