Wednesday, May 17, 2017
Friday, April 14, 2017
Sunday, October 14, 2012
Hello, this is a summary of IGCSE Business Studies to help you understand the its core concepts more easily. As a student, I would like to share with you my experience since I am studying this subject right now. I am not a professional so please feel free to add comments and suggestions on how I should improve.
This study guide is going to be about IGCSE Business Studies, Third Edition by Karen Borrington and Peter Stimpson. For more information, visit this page. All credit goes to the authors.
I hope you will enjoy this study guide and for me to be of help!
Saturday, August 25, 2012
The economics problem: needs and wants.
Basically, all humans have needs and wants. Needs are things we can't live without, while wants are simply our desires that we can live without. We all have unlimited wants, which is true, since all of us want a new PC, a car, new graphics card, etc. that we actually do not need to live. Businesses produce goods and services to satisfy needs and wants.
Although we have unlimited wants, there are not enough resources for everyone. Resources can be split into 4 factors of production, which are:
- Land: All natural resources used to make a product or service.
- Labour: The effort of workers required to make a product or service.
- Capital: Finance, machinery and equipment required to make a product or service.
- Enterprise: Skill and risk-taking ability of the entrepreneur.
Entrepreneurs are people who combine these factors of production to make a product.
Posted by MrSpitfire at 5:55 PM
Friday, August 24, 2012
Levels of economic activity
In order for products to be made and sold to the people, it must undergo 3 different production processes. Each process is done by a different business sector and they are:
- Primary sector: The natural resources extraction sector. E.g. farming, forestry, mining... (earns the least money)
- Secondary sector: The manufacturing sector. E.g. construction, car manufacturing, baking... (earns a medium amount of money)
- Tertiary sector: The service sector. E.g banks, transport, insurance... (earns the most money)
Posted by MrSpitfire at 4:18 PM