- 1. Business economics is a field of study that focuses on the production, distribution, and consumption of goods and services within an economy. It involves analyzing how businesses operate, make decisions, and interact with each other in various market environments. Business economics also examines the factors that influence pricing, market demand, profit maximization, and overall business strategy. By studying topics such as supply and demand, cost analysis, and market structures, business economics helps businesses make informed decisions to optimize their productivity and financial performance.
What is the formula to calculate total revenue in business economics?
A) Fixed costs + Variable costs
B) Price per unit x Quantity sold
C) Marginal revenue - Marginal cost
D) Average revenue x Quantity sold
- 2. What concept in business economics refers to the additional revenue generated from selling one more unit of a product?
A) Profit margin
B) Marginal revenue
C) Total revenue
D) Average revenue
- 3. What does the term 'elasticity of demand' measure in business economics?
A) Market concentration
B) Production efficiency
C) Responsiveness of quantity demanded to price changes
D) Profit margins
- 4. What type of market structure is characterized by a single seller with high barriers to entry?
A) Monopolistic competition
B) Monopoly
C) Perfect competition
D) Oligopoly
- 5. In business economics, what is the relationship between marginal cost and average total cost when average total cost is decreasing?
A) Marginal cost is less than average total cost
B) Marginal cost is greater than average total cost
C) Marginal cost has no relation to average total cost
D) Marginal cost is equal to average total cost
- 6. What do economies of scale refer to in business economics?
A) Costs that remain constant regardless of output
B) Costs saved by outsourcing
C) Variable costs that vary with output
D) Cost advantages due to increased production scale
- 7. What is the term for the difference between total revenue and total cost in business economics?
A) Costs
B) Revenue
C) Gross margin
D) Profit
- 8. What is the term for the most preferred use of a resource, which is forgone when the resource is used for something else?
A) Fixed cost
B) Opportunity cost
C) Variable cost
D) Sunk cost
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