EMS 1
What is a need?
Something essential for survival
Give one example of a want
e.g. sweets, phone, games
What is a budget?
A plan for spending money
What is income?
Money received
Thabo gives his friend a soccer ball in exchange for a jacket. What is that called?
Bartering
What is saving?
Keeping money for future use
Name ONE factor of production
Land / Labour / Capital / Entrepreneurship
What is the difference between goods and services?
Goods = physical items, Services = actions
What is a business?
An organisation that sells goods/services
What is one disadvantage of bartering?
It is difficult to find someone who wants what you have and has what you need
A business has no customers. Why?
Poor quality / high price / bad marketing
Why is saving important?
Emergencies / future goals
How can a business increase profit?
Increase sales / reduce costs
Why are needs more important than wants?
Survival vs luxury
Explain how businesses help the economy
Jobs, goods, services
What is an entrepreneur?
A person who starts a business
What is a formal business?
A registered business
What does unlimited needs mean?
People always want more things
What is the economic problem?
Limited resources vs unlimited needs
Give ONE benefit of recycling
Reduces waste / protects environment
How can recycling benefit a business?
Saves costs / attracts customers
Why are human wants unlimited?
People always desire more/better things
What does the primary sector do?
Uses natural resources (e.g. mining, farming)
Give one example of the secondary sector
Factory / making clothes / building cars
Which sector includes shops and transport?
Tertiary sector