Business Studies.txt

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  1. Define economics
    How individuals try to satisfy unlimited wants, using scarce resources
  2. Opportunity cost is what?
    Opportunity cost is the next best choice
  3. What are the three factors of production?
    Land, labour and capital (NB fourth may be entrepreneurship)
  4. Define and give an example for land
    All resources which are provided from nature, soil trees etc
  5. Define and give an example for labour (human resources)
    The effort by people in the production process, builder
  6. Define and give an example for capital
    Man made resources that are used to produce other goods and services eg machines, tools
  7. Define entrepreneur
    People who take risks, invent products and start up new businesses
  8. Draw a circular flow model.
    In book
  9. Define interdependence
    When two or more people and/or groups have a mutual reliance on each other
  10. What is the factor reward for Land?
  11. What is the factor reward for labour?
  12. What is the factor reward for entrepreneurship?
  13. What is the factor reward for Capital?
  14. Define specialisation
    When a business focuses on producing one type of good or service
  15. Define division of labour
    When the production of one good or service is split into separate tasks.
  16. Define demand
    Demand is the willingness and ability of the consumer to purchase a good or service at a range of prices
  17. Draw up a demand schedule
    Answer in book
  18. Draw a demand curve for previous schedule
    In book and on schedule
  19. What is ceteris paribus?
    Assuming all things other than price stay the same
  20. What is the law of demand
    As price increases, quantity decreases
  21. Changes to quantity demanded cause and are caused by what
    Is caused by a change in price and causes a movement along the demand curve
  22. What happens and what causes a change in demand?
    Causes a shift of the demand curve, caused by any factor except the price
  23. What are some examples that change demand?
    • + is advertising, popularity
    • - is bad publicity, unpopular
  24. Define a complementary good
    A good that can be used with another
  25. Define a substitute good
    A good that can be used in place of another
  26. What is market demand
    The horizontal summation of all individual demand schedules
  27. Define supply
    The quantity of a good or service that a producer is willing and able to provide to the Market at a range of prices
  28. What is the law of supply?
    As the price increases, the quantity increases, ceteris paribus
  29. Draw a supply schedule
    In book
  30. Draw a supply curve
    In book
  31. T or F: the change in price of a good or service leads to a movement along the supply curve?
  32. A change in what leads to a shift of the supply curve?
    Costs of production
  33. Define Market
    A place or situation where buyers meet to exchange goods and services
  34. What is equilibrium
    The point where the Market supply and the Market demand curves intersect. Occurs when both buyers and sellers agree on the same price and quantity
  35. What happens if the seller decides to set the price above equilibrium?
    There won't be enough demand to match the quantity the sellers provide. Leads to excess supply or surplus
  36. What happens if the seller decides to set the price below equilibrium?
    There will be too much demand for the quantity the sellers will provide. Leads to excess demand or shortage
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Business Studies.txt
Yr 10 Bus Notes
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