Business Economics Fundamentals Quiz

<p>The responsiveness of quantity demanded to changes in price.</p> Signup and view all the answers

<p>As a consumer consumes more units of a product, the satisfaction derived from each additional unit decreases.</p> Signup and view all the answers

<p>The basic problems of an economy include scarcity, choice, and allocation of resources.</p> Signup and view all the answers

<p>The law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction or utility derived from each additional unit decreases.</p> Signup and view all the answers

<p>Consumer equilibrium refers to the point where a consumer maximizes their satisfaction or utility, given their budget constraint and the prices of goods.</p> Signup and view all the answers

<p>Economies of scale refer to the cost advantages that a business can achieve as it increases its scale of production, leading to lower average costs per unit.</p> Signup and view all the answers

<p>Market equilibrium occurs when the quantity demanded of a good or service equals the quantity supplied, resulting in a stable price.</p> Signup and view all the answers