Consumers & Businesses
What is a consumer?
A person or organisation that buys goods or services for use.
What is a need?
Something essential for survival.
What is scarcity?
Limited resources cannot satisfy unlimited wants.
Which resource includes water, forests and minerals?
Land (natural resources).
What is opportunity cost?
The next best alternative that is given up.
Give one example of a consumer.
Examples include a family buying groceries or a student buying a laptop.
Name two examples of needs.
Food, water, shelter or basic clothing.
Why must people make choices?
Because resources are limited.
Which resource includes workers and their skills?
Labour
If you choose to play sport instead of doing homework, what is the opportunity cost?
Completing homework.
What is a business?
An organisation engaged in commercial, industrial or professional activities.
Give two examples of wants.
Mobile phone, designer clothing, swimming pool, gaming console, etc.
What scarce resource affects you when you only have one hour after school?
Time
Which resource includes machinery and equipment?
Capital.
You have $5. You buy lunch instead of saving for an excursion. What did you give up?
Saving money towards the excursion.
Name two examples of businesses.
Apple, McDonald's (or other valid businesses).
Why is it important to understand the difference between needs and wants?
It helps people make better choices about limited resources.
Outline why drought is an example of scarcity.
There isn't enough water to satisfy all wants, so priorities must be chosen.
What are the four factors of production?
Land, Labour, Capital and Entrepreneurship (Enterprise).
Identify the opportunity cost if you save your money instead of buying lunch today.
Buying lunch today.
Describe how consumer demand affects what businesses produce and sell.
Consumer demand tells businesses what people want, influencing what they produce and sell.
Outline the difference between needs and wants using examples.
Needs are essential for survival, while wants improve quality of life but are not necessary.
Outline how scarcity leads to choices and trade-offs.
Scarcity means resources are limited, so people must choose between alternatives and accept trade-offs.
Apply the four factors of production to a café.
Land: Labour: Capital: Enterprise:
Land—location and coffee beans;
Labour—baristas;
Capital—coffee machine/building;
Entrepreneurship—owner's ideas and risk-taking.
Describe a real-life decision you have made this week. Identify the scarce resource and the opportunity cost.
Answers will vary but should correctly identify the scarce resource, the choice made and what was given up.