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Business Studies IGCSEPDF 33
212 pagesrevision 46931
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Chapter 1: Business Activity
● Needs: They are goods and services essentialforliving and are limited in nature.
Wants: They are goods and services non-essential for living and are unlimited in
●
nature.
●
Economic Problem: Unlimited wants but resources required for satisfaction are
limited.
Factors of Production: They are resources needed to produce goods and services.
They are limited in nature and include:
●
1. Land: includes all natural resources used in production
2. Labour: it encompasses all the mental and physical efforts put in by employees
3. Capital: finance, machinery and equipment needed for the manufacture of goods
4. Enterprise: The individual who combines the three factors and takes the risk of
starting a new business