1. Lim Sei Kee @ cK

2. A: Cost of losing a job? B: Cost of starting a business? C: Cost of employing staff? D: Cost of something given up?

3.  measures the cost of any economic choice in terms of the next best alternative foregone EXAMPLES: The opportunity cost of deciding not to work is the lost wages foregone The opportunity cost of spending money on a foreign holiday is the lost opportunity to buy a new television.

4.  Poor Management  Insufficient Capital  Lack of Planning  Operational Inefficiencies

5. 1. ( ): describes the actions of someone who shows some initiative by taking a risk by setting up, investing in and running a business. 2. ( ) - something you have to have

6.  To produce goods and services requires resources. We call these the factor inputs available in the production process.  Economists make a distinction between three types of resources - land, labour and capital.  LAND  LABOUR  CAPITAL

7.  Factors of production are the resources of LAND, LABOUR, CAPITAL and ENTERPRISE used to produce goods and services.

8.  Land is the natural resources on the planet. It includes space on the ground, hills, seas, oceans, air etc

9.  Labour is the human input (workers, managers etc) into the production process.  Each individual has a different level of skills, qualities and qualifications. This is known as the HUMAN CAPITAL.

10.  Man made physical goods used to produce other goods and services.  Examples include machines, computers, tools, factories, roads etc.  Increases in the level of capital are called INVESTMENT

11.  The entrepreneur provides the initial ideas.  They risk their own resources in business ventures. They also organise the other 3 factors of production.

12. Labour: Workers employed directly in the car industry; engineers, designers, paint sprayers, testers, management staff, transport & distribution workers etc Land: Natural resources used in manufacturer, land for plant and equipment Capital: Fixed capital: machinery, technology, buildings + Working capital: i.e. stocks of raw materials and components Entrepreneurship (sometimes seen as a separate factor): management, risk-taker

13.  The factors of production are combined to make goods and services. Choices have to be made over what to produce and how to produce.  The value of total production in an economy is known as TOTAL OUTPUT.

14.  (1) PRIMARY INDUSTRY  (2) SECONDARY INDUSTRY  (3) TERTIARY INDUSTRY

15.  (1) PRIMARY INDUSTRY  Industry that extracts raw materials from the earth, such as coal, fish and wheat. Raw materials are mined, collected, grown or cut down.  Examples coal mining, agriculture, oil extraction

16.  (2) SECONDARY INDUSTRY  Industry that processes primary products into manufactured goods.  Examples car production, making tables

17.  (3) TERTIARY INDUSTRY  Businesses that provide a service, either to individuals or to other businesses  Examples hairdressing, banking or solicitors

18.  A]] Think about IGS. What evidence is there of the 4 factors of production land, labour, capital and enterprise?  B]] Now do the same for a business that you know something about.  C]] What qualities are needed in an effective entrepreneur?  D]] Think about your own human capital. What skills and qualities do you have?