Business Economics Fundamentals Quiz

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Which principle explains the concept of opportunity cost?

Equimarginalism

Risk and uncertainty

Discounting principle

Marginalism (correct)

Which unit of the syllabus covers the basic problems of an economy?

Unit IV

Unit II

Unit I (correct)

Unit III

Which unit of the syllabus covers the theory of utility?

Unit III

Unit I

Unit IV

Unit II (correct)

What does the concept of elasticity measure?

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

What does the law of diminishing marginal utility state?

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

What are the basic problems of an economy?

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

What is the law of diminishing marginal utility?

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. Signup and view all the answers

What is consumer equilibrium?

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

What are economies of scale?

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. Signup and view all the answers

What is market equilibrium?

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