Business Degree Business Economics

Question 1

What is 'opportunity cost' in economics?

Accepted Answer

The value of the next best alternative foregone when making a choice

Answer

The direct monetary expense of a business decision

Answer

The cost of correcting a poor business decision

Answer

The interest paid on borrowed capital

Question 2

What does 'GDP' (Gross Domestic Product) measure?

Accepted Answer

The total monetary value of all goods and services produced within a country in a given period

Answer

The total value of a country's imports and exports

Answer

A country's total national debt outstanding

Answer

The average income per capita of a country's citizens

Question 3

What is 'supply and demand' in market economics?

Accepted Answer

The economic model describing how prices are determined by producers' willingness to sell and consumers' desire to buy

Answer

A government framework for controlling prices and production

Answer

A company's internal production and inventory planning system

Answer

A measure of a product's profitability across different markets

Question 4

What is 'inflation' in economic terms?

Accepted Answer

A sustained increase in the general price level of goods and services over time

Answer

A decrease in the general price level of goods and services

Answer

A rapid rise in company stock prices

Answer

An expansion in money supply that only affects financial markets

Question 5

What is a 'monopoly' in market structure?

Accepted Answer

A market dominated by a single seller with no close substitutes for its product

Answer

A market with many competing firms of equal size

Answer

A market where two large firms control most of the supply

Answer

A government-regulated market with fixed prices

Question 6

What is 'comparative advantage' in international trade?

Accepted Answer

The ability to produce a good at a lower opportunity cost than a trading partner

Answer

Having the largest economy in a trading bloc

Answer

Possessing advanced technology that competitors lack

Answer

Having access to more natural resources than other countries