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WANTS AND NEEDS

WANTS AND NEEDS. A person’s NEEDS are limited - FOOD CLOTHING SHELTER. A person’s WANTS are unlimited - CAR MOBILE PHONE HOLIDAY NEW CLOTHES ENTERTAINMENT. BUSINESS ACTIVITY. Business activity provides us with goods and services to satisfy our wants. GOODS.

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WANTS AND NEEDS

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  1. WANTS AND NEEDS • A person’s NEEDS are limited - • FOOD • CLOTHING • SHELTER • A person’s WANTS are unlimited - • CAR • MOBILE PHONE • HOLIDAY • NEW CLOTHES • ENTERTAINMENT Business Activity in Contemporary Society

  2. BUSINESS ACTIVITY Business activity provides us with goods and services to satisfy our wants Business Activity in Contemporary Society

  3. GOODS • GOODS are things which you can see and touch. • DURABLE goods are goods which we use again and again, eg, computer. • NON-DURABLE goods are things we normally use only once, eg, food, newspaper but we buy regularly Business Activity in Contemporary Society

  4. SERVICES • Services are things which are done for us, eg, banking, education, transport Business Activity in Contemporary Society

  5. ? Copy this table into your jotter and complete by writing down 6 of your WANTS. State whether they are goods (durable or non-durable) or services. Business Activity in Contemporary Society

  6. BUSINESS ACTIVITY In order to produce goods and services (OUTPUTS), a business needs to use resources (INPUTS) INPUTS Resources PROCESS OUTPUTS Goods/Services For example Materials Labour For example Trainers Meal in restaurant Business Activity in Contemporary Society

  7. FACTORS OF PRODUCTION The resources a business uses are called the FACTORS OF PRODUCTION. • LAND • LABOUR • CAPITAL • ENTERPRISE Business Activity in Contemporary Society

  8. LAND • The factor of production called LAND refers to all natural resources for example, • oil • coal • water • forests • as well as land itself Business Activity in Contemporary Society

  9. LABOUR • The factor of production called labour refers to the human resources used in the organisation. For example, • sales persons • accountants • cleaners • machinists Business Activity in Contemporary Society

  10. CAPITAL • The factor of production called capital refers to • all the man made resources owned by the business, such as, • factory • tools • equipment • machinery • vehicles • the finance invested in the business Business Activity in Contemporary Society

  11. ENTERPRISE The ability of the owner or manager of a business to use the other factors of production - land, labour and capital - effectively. LABOUR CAPITAL LAND Business Activity in Contemporary Society

  12. ? Herr Kutt opened a hairdressing and beauty salon business with £3,000 from his savings and a bank loan of £2,000 He found premises in the High Street which had land at the back he could use as a customer car park. He fitted out the salon with furniture and equipment and ensured he had a good supply of water for washing. He employed Liam and Linda as stylists, Lisa as a junior, Luke as a receptionist and Lauren as a beautician. Copy out the table below and complete showing Herr Kutt’s factors of production. One has been done for you.

  13. THE BUSINESS CYCLE and WEALTH CREATION Business produces goods and services to meet the never ending wants of consumers Consumers have money from their wages to spend on other goods and services Consumers buy goods and services to obtain the things they want Wealth is created for businesses and their employees Business Activity in Contemporary Society

  14. BUSINESS CYCLE Business Activity in Contemporary Society

  15. ? Answer the following questions in your jotter 1 What is the difference between needs and wants? Give examples. 2 If we only had needs rather than wants, why would there be very limited business activity? 3. Identify and Describe the 4 factors of production. Which do you think is the most important? Justify your answer. 4 Explain how the cycle of business creates wealth. 5 Which of the following jobs create wealth? Teacher; Doctor; Miner; Baker;Accountant; Jewellery Designer Business Activity in Contemporary Society

  16. SECTORS OF ACTIVITY/INDUSTRY • Businesses can be grouped into sectors according to the types of products or services they provide. • These sectors are called • PRIMARY • SECONDARY • TERTIARY Business Activity in Contemporary Society

  17. PRIMARY SECTOR • Businesses involved in exploiting natural resources OIL EXCAVATION FORESTRY FARMING MINING Business Activity in Contemporary Society

  18. SECONDARY SECTOR • Businesses involved in manufacturing and construction • Taking natural resources and changing them into things we can use Car manufacture Clothing manufacture Shipbuilding Business Activity in Contemporary Society

  19. TERTIARY SECTOR • Businesses which provide a service, eg BANKING BARBERS HOTEL Business Activity in Contemporary Society

  20. ? Copy this table into your jotter and complete showing which of the following organisations are involved in Primary, Secondary and Tertiary activities

  21. Changes in Industrial Activity • All countries are heavily involved in primary sector activities at first • As their economies grow they become industrialised and become more involved in secondary industries • In the last 30 years the UK has lost many of its traditional industries (de-industrialisation) • In the UK there has been a significant growth in service industries Business Activity in Contemporary Society

  22. QUESTIONS • Identify and describe each of the 3 sectors of economic activity? • Identify 3 examples of activity for each sector. • Can you think of ways in which Shell Oil could be involved in all 3 sectors of economic activity? Business Activity in Contemporary Society

  23. Design a poster explaining the 3 sectors of business activity Business Activity in Contemporary Society

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