IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
A good or service that is essential for people's living -
Correct Answer ✅Need
A good or service which people want to have, not essential -
Correct Answer ✅Want
When wants exceed the resource available to make scarcity -
Correct Answer ✅Economic problem
when there are unlimited wants but limited resources -
Correct Answer ✅Scarcity
Land, labor, capital, enterprise - Correct Answer ✅Factors
of Production (4)
The next best alternative choice given up as another was
chosen - Correct Answer ✅Opportunity cost
When workers specialize in one task which they do, best at -
Correct Answer ✅Specialization
,IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
When labor force is divided into sections in which people at
those sections are specialized in one particular job - Correct
Answer ✅Division of labor
Combine 4 factors of production and make products/services
- Correct Answer ✅Purpose of business activity
Selling price - cost of making products - Correct Answer
✅Added value
Where people extract natural resources from earth and turn
them into raw materials - Correct Answer ✅Primary sector
Turn raw materials into products - Correct Answer
✅Secondary sector
Provide services to customers and sell products - Correct
Answer ✅Tertiary sector
,IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
Decline of importance for secondary sector - Correct
Answer ✅De-industrialization
Has private and public sector businesses - Correct Answer
✅Mixed economy
Businesses own by individuals - Correct Answer ✅Private
sector
Businesses own by the government - Correct Answer
✅Public sector
Money (invested into a business) - Correct Answer
✅Capital
A person who combines all 4 factors of production together -
Correct Answer ✅Entrepreneur
Risk-taking, confident, patient, optimistic, creative, hard-
working - Correct Answer ✅Qualities of an entrepreneur
, IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
A plan which outlines a business' objectives, name of
organization, finance and owners of business - Correct
Answer ✅Business plan
Amount of money invested into a business - Correct Answer
✅Capital employed
Number of employees, output, sales and capital employed -
Correct Answer ✅Comparing the size of businesses (4)
More profit, status, lower average costs, more market share -
Correct Answer ✅Why owners want business to grow
Bad communication, management, increase expansion costs -
Correct Answer ✅Expansion problems (4)
Nature of product/service, owner wants, market size -
Correct Answer ✅Why business want to stay small
Questions and Answers (Latest Update
2024)
A good or service that is essential for people's living -
Correct Answer ✅Need
A good or service which people want to have, not essential -
Correct Answer ✅Want
When wants exceed the resource available to make scarcity -
Correct Answer ✅Economic problem
when there are unlimited wants but limited resources -
Correct Answer ✅Scarcity
Land, labor, capital, enterprise - Correct Answer ✅Factors
of Production (4)
The next best alternative choice given up as another was
chosen - Correct Answer ✅Opportunity cost
When workers specialize in one task which they do, best at -
Correct Answer ✅Specialization
,IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
When labor force is divided into sections in which people at
those sections are specialized in one particular job - Correct
Answer ✅Division of labor
Combine 4 factors of production and make products/services
- Correct Answer ✅Purpose of business activity
Selling price - cost of making products - Correct Answer
✅Added value
Where people extract natural resources from earth and turn
them into raw materials - Correct Answer ✅Primary sector
Turn raw materials into products - Correct Answer
✅Secondary sector
Provide services to customers and sell products - Correct
Answer ✅Tertiary sector
,IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
Decline of importance for secondary sector - Correct
Answer ✅De-industrialization
Has private and public sector businesses - Correct Answer
✅Mixed economy
Businesses own by individuals - Correct Answer ✅Private
sector
Businesses own by the government - Correct Answer
✅Public sector
Money (invested into a business) - Correct Answer
✅Capital
A person who combines all 4 factors of production together -
Correct Answer ✅Entrepreneur
Risk-taking, confident, patient, optimistic, creative, hard-
working - Correct Answer ✅Qualities of an entrepreneur
, IGCSE Business Studies 0450 Exam
Questions and Answers (Latest Update
2024)
A plan which outlines a business' objectives, name of
organization, finance and owners of business - Correct
Answer ✅Business plan
Amount of money invested into a business - Correct Answer
✅Capital employed
Number of employees, output, sales and capital employed -
Correct Answer ✅Comparing the size of businesses (4)
More profit, status, lower average costs, more market share -
Correct Answer ✅Why owners want business to grow
Bad communication, management, increase expansion costs -
Correct Answer ✅Expansion problems (4)
Nature of product/service, owner wants, market size -
Correct Answer ✅Why business want to stay small
