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 The economic problem of unlimited wants and limited resources  The factors of production  The development of economic activity and the use of specialization.

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Presentation on theme: " The economic problem of unlimited wants and limited resources  The factors of production  The development of economic activity and the use of specialization."— Presentation transcript:

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2  The economic problem of unlimited wants and limited resources  The factors of production  The development of economic activity and the use of specialization  What is meant by a business  The most common aims of business  The different groups involved in business activity.

3 NeedsWants

4 NNeeds ›E›Essential goods or services necessary for living. ›S›Satisfy the basic things for life. WWants ›N›Non-essential goods and services that people would like to have. ›I›Interests & Tastes

5 NeedsWants Limit your wants to no more than 25 items please!

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9 TThe shortage of goods & services ›T›TOO FEW FACTORS OF PRODUCTION! Land Labour Capital Enterprise Factors of Production

10 All of the natural resources provided by nature

11 All people’s efforts to make products

12 All finance, machinery & equipment in manufacturing products

13 All people that have skills & have risk-taking ability  factors of production  produce good or service

14 Limited in Supply Land Labour Capital Enterprise Factors of Production

15 Unlimited Wants Limited Resources Scarcity +=

16 Individual BusinessGovernment

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18 Joe cuts the wood He assembles the table Joe polishes the table Joe delivers the table on a horse and cart 1432

19 The wood for 20 tables is cut with a specialist machine Carpenters assemble the tables The tables are finished in the polishing department A transport company collects the tables to deliver them to furniture retailers

20  Specialization / Division of Labour › Production Process › Different tasks split up › Workers performs a task

21  Advantages › Specialised task training › Increases efficiency › Increases output › Save time  Disadvantages › Bored workers › Possible drops in efficiency › Production stopped due to absence

22  Unlimited wants  4 factors of production › Resources in limited supply to make goods and services  Scarcity › Limited resources – unlimited wants  Choice › Opportunity Cost  Specialisation › Improves efficient use of resources

23  Combine factors of production  Produce products  satisfy peoples wants

24  Goods › Physical items › Tangible › Touch and see  Services › Intangible

25  Combines scarce factors of production in order to produce good and services  Produces those goods and services which are needed to satisfy the needs and wants of the population  Employs people as worker and pays them wages to allow them to consume products made by other people

26  Aim / Target to work towards › Make a Profit › To increase added value › To expand the business › To achieve business survival › To provide a service

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28 Selling Price Cost of materials/ Components Value Added -=

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32 GGet into groups and look at the text and prepare to explain to the rest of the class what your objective means. ›G›Group 1 – Profit and Growth ›G›Group 2 – Added Value ›G›Group 3 – Survival and providing a service PPrepare to give a presentation on your findings

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36  Owners  Workers  Managers  Consumers  Government  Community

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38  The difference between wants and needs, with examples  Scarce resources  Principle of opportunity costs  Importance of specialization in production  Purpose of business activity  Importance of different groups in business activities.

39  IGSCE Business Studies › The purpose of Business Activity › Revision Questions


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