Explain the concept of opportunity cost and give 3 examples of it.
Opportunity cost means the second best choice that is given up. This is due to the shortage of products and resources hence unable to satisfy all of our wants. Therefore we must choose the best choice and give up the other. The first example would be the government choosing between building roads and building hospitals. The second example is choosing between two locations for a new factory. The third example would be a business considering labor intensive or capital intensive.
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Enterprise
- Explain the difference between a charity and a social enterprise.
- Explain what is meant by the term "triple bottom line".
- What is meant by the term 'social enterprise'?
- Using an example of a small business/recently established new business, explain how its owners overcame the three challenges - New businesses, Economic growth and Innovation.
- List 3 benefits of entrepreneurship to the economy of your country and explain why they are important.
- Explain why there are so many new business enterprises in the tertiary sector of industry, such as hairdressing and car servicing.
- What do you understand by the term "entrepreneur"?
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- A new business selling computer software has just opened in your town. Explain 3 needs that this business will have if it is to be successful.