1.1 Understanding Business Activity IGCSE Business studies

Created from Youtube video: https://www.youtube.com/watch?v=jadJUYXk4tIvideo

Concepts covered:business activity, needs and wants, scarcity, opportunity cost, adding value

The video on 'Understanding Business Activity' for IGCSE Business Studies covers key concepts such as the purpose and nature of business activity, needs and wants, scarcity, opportunity cost, specialization, and adding value. It explains how businesses aim to meet consumer needs and wants, the economic implications of scarcity, the role of opportunity cost in decision-making, the benefits and drawbacks of specialization and division of labor, and strategies for adding value to products and services.

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Concepts covered:business activity, needs and wants, scarcity, opportunity cost, adding value

Question 1

Businesses aim to meet customer needs and wants.

Question 2

What is opportunity cost in decision-making?

Question 3

The purpose of a business is to meet our needs and _____.

Question 4

CASE STUDY: A tech startup is deciding between investing in new software or hiring more staff. They have limited resources and need to make a choice.

What is the opportunity cost of hiring staff?

Question 5

CASE STUDY: A clothing brand specializes in eco-friendly fashion. They want to enhance their market position by leveraging their specialization.

Select three correct specialization benefits.

Question 6

Adding value is the same as making profit.

Question 7

What does scarcity in economics imply?

Question 8

Division of labor increases efficiency by allowing workers to focus on a _____.

Question 9

CASE STUDY: A local bakery wants to increase its profits by adding value to its products. They are considering several strategies to achieve this goal.

Which strategy does not add value?

Question 10

Opportunity cost involves gaining all alternatives when one is chosen.

Question 11

How does specialization benefit businesses?

Question 12

Value-added is the selling price minus the cost of _____.

Question 13

Scarcity arises from unlimited wants and limited resources.

Question 14

How can businesses add value to products?

Question 15

Opportunity cost is the loss of other _____ when one is chosen.

Question 16

Specialization increases efficiency in production processes.

Question 17

What is the main purpose of business activity?

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