1.1.

1 The purpose and nature of business activity: Activity A

Activity type
Sorting task

Time
30 minutes

Content
Needs, wants and scarcity

Key terms
need; scarcity; want

Aims
To understand the difference between wants
and needs, and how these are affected by
scarcity (1.1.1)

Skills practised
AO1: Knowledge and understanding 
AO2: Application 
AO3: Analysis
AO4: Evaluation

Preparation
Make one copy of Activity sheet 1.1.1A for each
student in the class.

Cambridge Assessment International Education Business Studies Teacher’s Guide © HarperCollinsPublishers Limited 2018
Procedure
1. Tell students that they are going to work in small groups to complete a sorting task, in which they
have to identify which statements represent needs and which represent wants. Students need to
decide based on the item in relation to the person in each statement.
2. Divide the class into groups of three to four and give a copy of Activity sheet 1.1.1A to each student.
3. Explain that the students need to work as a team to categorise the statements. They read the
statement, decide whether it is a need (N) or a want (W) and write the correct letter in the box.
4. Give students about 10 minutes to do this. Then take feedback from different groups for each
statement, asking them to explain their choice of category to the class.
5. Students then complete the second part of the activity sheet. In their groups, students have five to six
minutes to make a list of five resources which they think are scarce. The aim of this activity is for
them to come up with five resources that other groups do not think of.
6. Ask groups to feed back and award one point for every resource that no other group has. For
example, many groups may have oil on their list, whereas not many groups may think of capital. You
will have to make judgements as to whether the resources are scarce or not.
Teacher tip: Group students so that there is a mix of abilities in each group, so more able students can
support the less able in terms of subject knowledge and language.
Variation: Adapt the list of needs and wants to those of a specific business or a person in the class.
Extension: Students answer the exam-style question at the bottom of the activity sheet.

Suggested answers to Activity sheet 1.1.1A

Needs and wants: 1 W, 2 N, 3 W, 4 W, 5 N, 6 N, 7 W, 8 N, 9 N, 10 N
Scarce resources: Examples include: coal, oil, gas, land, trees
Extension question: The key ideas to mention in this question are: choice of uses for the scarce
resource means that its value increases, lack of supply and time/cost needed to make the product.
Example answers: Petrol: The time taken and resources needed to create petrol from oil result in a high
price. Petrol is also used by millions of people and businesses and is seen as a necessity.
Diamond rings: Diamonds are very scarce and are therefore rare. This increases their price as not
everyone can have one.

Cambridge Assessment International Education Business Studies Teacher’s Guide © HarperCollinsPublishers Limited 2018