1. Understanding
business activity
yay!
, KEY DEFINITIONS
A need : something that is necessary.
A want : something that is beneficial but not necessary.
The economic problem : wants do not have limits but factors of
production (land, labour, capital and enterprise) do.
Scarcity : occurs when there is a greater amount of wants and needs
than resources.
Opportunity cost : the next best alternative given up when choosing
another.
, DIVISION OF LABOUR
Specialisation : when someone focuses on doing what they are best at.
Advantages Disadvantages
● Practice makes perfect ;) ● If 1 worker is absent, whole
production is impacted
● No time lost switching
between different jobs ● Job may get boring which
would impact the quality of
the work
, CLASSIFICATION
Services
Tertiary
Production
Secondary
Resources
Primary
business activity
yay!
, KEY DEFINITIONS
A need : something that is necessary.
A want : something that is beneficial but not necessary.
The economic problem : wants do not have limits but factors of
production (land, labour, capital and enterprise) do.
Scarcity : occurs when there is a greater amount of wants and needs
than resources.
Opportunity cost : the next best alternative given up when choosing
another.
, DIVISION OF LABOUR
Specialisation : when someone focuses on doing what they are best at.
Advantages Disadvantages
● Practice makes perfect ;) ● If 1 worker is absent, whole
production is impacted
● No time lost switching
between different jobs ● Job may get boring which
would impact the quality of
the work
, CLASSIFICATION
Services
Tertiary
Production
Secondary
Resources
Primary
