- State the factors to consider when Preparing a scale of preference
– Decide which goods to buy according to their importance or priority and resources available.
- Manage their finances well by buying only the most important things
- Efficiently use available resources
- Make reasonable choices when purchasing goods.
- Maximise the satisfaction of needs and wants using limited resources
- State the various types of business activities
- Extraction
- Processing
- Manufacturing
- Distribution and transportation
- Construction
- Trading
- Provision of services
- Explain the various types of business activities you have listed above.
Extraction – means obtaining goods from their natural setting e.g mining, farming, lumbering etc
Processing of raw materials – it is changing the form of goods without combining it with other goods
Manufacturing – combining different raw materials to come up with one final product e.g. table is made of wood, glue, nails and varnish
Construction – involves building structures like Rails, road and buildings
Distribution of goods – Spreading of goods from the manufacturers to the users. Done by distributors
Trade – Buying and selling of goods with the aim of making profits. Done by traders
Provision of services – Selling services to consumers e.g. hairstylist, car washers
- Business activities create employment for self and other people in the community
- Business activities help individuals improve their standard of living due to increased income from the profit earned.
- Business activities use available resources within societies to create goods and services.
- Business activities help to offer alternative goods that may not be easily available in the community.
- Define Goods and services
Goods are things that we can touch
Services refer to the activities that people or organisation do or provide to get paid to satisfy the needs or wants of a consumer
- State the Types of goods
- Producer and consumer goods
Producer goods are used in producing other. They are also known as capital goods e.g. machines, equipments and tools.
Consumer goods are readily usable by the final consumer. E.g. food, clothing, furniture, cosmetics, medicine etc
- Economic goods and non economic goods
Economic goods are goods with a price and are generally limited in supply
Non economic goods are free goods with no price. These are also known as free goods
- Intermediate goods and finished goods
Intermediate goods cannot be used until they are further processed
Example: cotton
Finished goods have already been transformed into final products for consumption
Example: clothes
- Name some Types of services
- Commercial services
Business use these services in conducting various business activities
They include banking services, insurance
- Social services
These are essential public services. They are provide by the government or other organisations such as non profit organisations
Include services in education, sanitation, medical facilities
- Personal services/direct services
These are services provide by an individual according to their personal needs
They include teaching, healthcare
- State the Importance of goods and services
- Goods and services help satisfy consumer needs and wants
- Business make money by producing and selling goods and services
- Goods and services ensure the community of business
- Selling goods and services is a source of income
- Distinguish between goods and services
| Goods | Service |
| Are tangible ie can be seen, touched or felt | Are intangible i.e. cannot be seen touched |
| Not always exhausted during use | Always used up or exhausted after every act |
| Identical goods can be created through mass production | Are difficult to make identical since they vary over tome and provider |
| The price paid is for the possession or ownership of the good | Price paid is the effect of the act or the effort |
| Surplus goods can be stored for latter use | Cannot be provided in excess and once provided cant be stored later |
| Are easily separable from the producers | Are inseparable cant be |
- What are the Characteristics of goods and services
The characteristics of goods and services can be used to distinguish or differentiate goods and services
- Goods are tangible that is they can be touches and felt
Services are intangible that is they cannot be touched or felt
- Goods can be separated from the seller
Services cannot be separated from the service provider
- Ownership of goods can be transferred from the seller to the buyer
Services cannot be transferred to the client
- Goods can be stored for future use
Services cannot be stored for future use
- Goods can be quantified in various shapes and sizes
Services cannot be quantified
- The quality of goods can be standardised
the quality of services cannot be standardised
- Goods can be seen while services cannot be seen
- Which are the Sources and places for buying goods and services
- Goods can be obtained from various sources and places. These places and sources include open air markets, kiosks, supermarkets online markets
- Services are acquired from different service providers such as barbershops, transport operators, lawyers offices, they can be located at different places
- Goods and services can be obtained through online markets platforms through websites and applications
- Examples of online services include online banking, where people can conduct banking transactions such online cash withdrawals and payments.
- Define the following terms
A resource is anything needed to accomplish a task or satisfy a need or a want
Economic resources are the inputs used to produce goods and services for satisfaction of human needs and wants.Economic resources are those resources that require human effort to produce goods and services.
- Name three examples of economic resources.
- Soil
- Minerals
- Machines
- Vehicles
- Buildings
- Tools
- State the Characteristics of economic resources
- Can change ownership
Economic resources can change ownership from one person to another through sale or donations
- Have utility
Utility means usefulness.
Economic resources can be used to produce other goods and services
- Scarce in supply
Economic resources are not available in sufficient quantities
- Have monetary value
They have a value that can be exchanges for ownership
- Have alternative use
Economic resources may be put into different uses
Eg car owner may rent it for business
- Can be complementary
Different economic resources may be consumed together such as a car with petrol
- Can be combined
Different economic resources are combined to produced the final product
For example a wooden chair is made using nails, timber and vanish
- Name the Types of economic resources
- Human made resources/artificial resources
Are made by people to be used in producing goods and services
Examples: machines, factories, vehicles
These things aid the production of goods and services and make work easier
- Human resources
Are people who have the skills required in producing goods and services
Examples; drivers, technicians, salespeople, farmers, carpenters, bakers
- Natural resources
Are things that are naturally found in the environment and are important in the production of goods and resources.
Examples; water, land, forests, minerals
- The distribution of economic resources is uneven. This means that different regions or places may have different types of resources.
- Example certain regions have rivers while others do not
- Explain some of the Sustainable ways of using economic resources in Kenya
- Suitable use of economic resources mans using resources in a way that ensures we meet our own needs without affecting the ability of future generations to meet their needs.
- Suitable use of resources aims ensure that future generation can be able to utilise economic resources to produce the products and services they need
- Some of the ways to sustainably use economic resources include
- Planting trees after cutting down other tress
- Treating industrial wastes before disposing them to water bodies or releasing them int the air
- Protecting soil from the erosion to improve farm produce
- Recycling plastics and other harmful materials instead of dumping them anyhow.
- Tools, instruments or machines should be properly maintained.
- Employees or labourers should be treated well and paid fairly. This ensures their availability for future projects
- Economic resources are important and therefore should be used responsibly.
Our community needs economic resources because of the following reasons
- They are used to create goods and services which satisfy human needs and wants
- They are a means of development because they are the key to the improved economic growth of a country
- Economic resources create employment opportunities for the people who utilise them
- Economic resources create wealth and eradicate poverty
- Explain the Importance of communication in business
- It helps in decision making
Good communication provides all the necessary information that helps to make quality decisions
- It enhances public relationships
Good communication enables the business to create a good image for the public
- It improves customer services
Communication enables the business to create good image for the public
- It helps give instructions
Effective communication helps business to get work done by issuing procedures and orders
- It enhances good relationship between business owners and employees
Effective communications ensure business owners and employees have a good working relationship
- It promotes business innovation
Sharing information stimulates creativity and innovation among the employees
- It increase productivity
Good communication, motivates wor kers which increases productivity
- What is the Importance of production
- It makes use of the available resources to make goods and services
- It creates employment opportunities
- It provides goods and services required to satisfy human needs and wants
- It improves trade in a country. This contribute to the economy of the country
- State the Factors of production,
Factors or production are the resources needed to produce goods and services
They include
- Land
- Labour
- Capital
- Entrepreneurship
