Questions:

COMMERCE

1. Use the words in the list to complete the following passage.

Unlimited, wants, food, goods, plumbers, services, computer, consumer, scarce

A consumer is someone who purchases goods and services to satisfy their needs and

wants. Needs are those items that everyone must purchase because they are essential for survival.

This includes items such as, clothing and shelter. Wants are things that we like to have, such as a

car, mobile phone, or computer. Goods are things that are produced and can be physically touched;
for

example, a television or a car, while? are things that one person will do for someone in return

for payment. People who provide services include plumbers, doctors, and dentists. Wants are

unlimited while resources are scarce.

2. Classify the following goods as needs or wants by including them in the correct column in the
table:

television, house, bread, car, shirt, computer, coat, mobile phone. Add 3 more of your own in each

category.

Needs
House Car
Bread Mobile phone
Shirt Television
Coat Computer

3. Classify the following as either goods or services by including them in the correct column in the
table:

plumber, television, bicycle, doctor, dentist, camera, dress, electrician, teacher, shoe. Add 3 more of
your

own in each category.

Goods Services
Television Plumber
Bicycle Doctor
Camera Dentist
Dress Electrician
Shoe Teacher
4. Explain the difference between durable and non-durable goods.

A durable good is one that can

be used many times, such as a car or television. Non-durable goods

are those that can be used only once, such as a sandwich or a litre of

petrol.

5. Explain what is meant by the term ‘opportunity cost’.

What an individual gives up satisfying a need or want is

known as opportunity cost.

6. Sally decides to spend her pocket money on a cake instead of saving it to buy a mobile phone.
What is the opportunity cost of her decision?

The opportunity cost of this decision is the cake because it would have been a want that would
satisfy her.

7. Explain the difference between each of the four resources that are used to manufacture our goods
and

services.

Land — these resources occur naturally, such as forests, coal, and fertile soil.

Labour — this includes both the physical and mental effort of people who are working.

Capital — these resources are goods used to make other goods. For example, a tractor is a

capital good because it is used to produce crops.

Enterprise — this is the ability to combine the other resources of land, labour, and capital so

as to earn a profit. These resources are limited or scarce. At times, some resources can be

over utilised and become even more limited. For example, some species of fish have become

quite rare due to overfishing. Overall, this means that producers must constantly make

decisions to provide consumers with the goods and services they desire to satisfy

their needs and wants.

ENGLISH

MATHS

GEO

CHILD STUDIES