Revision Unit 1

Our teacher Maria gave this questions to answer on the unit we finished reading on Business, Revision Unit 1

A. Human needs are: shelter, clean water, clothing. It is essential for every human being to have somewhere to sleep and protect from the cold or rain. It is also crucial for us to drink water, dehydration is a dangerous thing, and clothing is also very important to stay cover, such as from the cold winter.

Human wants are: luxury house, coca-cola, car, designer jeans. It is not a need for a us to have a big house, with many rooms and nice things, coca-cola is a tasteful drink, but not essential, and designer jeans are something only those with money use, no all of us have them and we don’t need them.

B. In all countries there are wants and needs that need to be fulfilled, to make all of these goods and services there are factors of production, land, labour, capital, enterprise, which are limited. As there is never enough land or capital to fulfil the needs and wants of the population, there is an economic problem of scarcity.

C. Land: natural resources provided by nature, such as oil, land, forests, gas, metals.

Labour: people available to make products.

Capital: finance, machinery and equipment used for manufacture of goods.

Enterprise: the person who brings the resources and factors of production together to produce a good or a service, such as the owner of a business, known as an entrepreneur.

D. Let’s imagine someone that has $1000 and wants to buy a new pair of shoes and phone, so he goes to store and the phone is $700 and the shoes are $500, he does not have enough money to pay both the phone and the shoes, so he chooses to buy the shoes, the phone would be the opportunity cost. Opportunity cost is the best alternative given up by choosing.

E. A group of students has to decide whether to go to Entre Rios, by bus and make a two days stop in the Termas, or go directly to a camping site in Entre Rios by Plane. The students decide to go to Entre Rios by bus and stop for two days in the Termas, as they have never been there. The air plane is the opportunity cost.

A group of tourists visiting Rome are asked by the guide whether they would like to go see Fontana de Trevi or visit the Colosseum . They decide to go to the Colosseum, which is bigger and takes longer to visit. Seeing Fontana de Trevi would be the opportunity cost.

F. Division of labour is when the production is divided into the making of different jobs and making each worker a specialist at just one task.

G. Why is a business likely to increase output if it adopts division of labour? It is likely for a business to increase output if it adopts division of labour because, having different workers doing different tasks and then putting them together to have the final product is faster than having one person doing the whole product by himself.

H. Mixing the eggs and the milk, adding the flour, adding the mix to a mould, putting the mould in he oven.

I. Three benefits from business activity can be: products that satisfy the needs and wants of people, they give jobs to unemployed people, when you pay for a product you are also paying taxes that then help society.

J. Added value is the difference of money there is between the selling price of a product and the cost of bought in materials and components that the product has.

K. You can make the product with cheaper products, or something that makes it different, such as making it hand made, you will be earning more money.