Introduction to Business Economics

<p>It leads to predictable changes in choices made. (D)</p> Signup and view all the answers

<p>They primarily serve their own self-interest. (B)</p> Signup and view all the answers

<p>They will respond to market changes based on profit expectations. (D)</p> Signup and view all the answers

<p>It increases the cost of leisure activities like going outdoors. (D)</p> Signup and view all the answers

<p>Emphasis on opportunity cost and self-interest. (A)</p> Signup and view all the answers

<p>Television sets (B)</p> Signup and view all the answers

<p>It is consumed in the act of consumption (B)</p> Signup and view all the answers

<p>Rent (A)</p> Signup and view all the answers

<p>Machinery and buildings used in production (B)</p> Signup and view all the answers

<p>It suffers wear and tear. (C)</p> Signup and view all the answers

<p>Money that can be easily accessed (B)</p> Signup and view all the answers

<p>The working part of the population (B)</p> Signup and view all the answers

<p>Money for replacements (C)</p> Signup and view all the answers

<p>Stocks of components, raw materials, and finished goods (C)</p> Signup and view all the answers

<p>The examination of individual businesses and industries (D)</p> Signup and view all the answers

<p>Managerial, financial, inter-personal, and strategic abilities (B)</p> Signup and view all the answers

<p>Created challenges for Airbus in competing effectively (D)</p> Signup and view all the answers

<p>Bill Gates (D)</p> Signup and view all the answers

<p>The economy as a whole (A)</p> Signup and view all the answers

<p>Demand and supply interactions within individual markets (B)</p> Signup and view all the answers

<p>The expertise provided by the entrepreneur (B)</p> Signup and view all the answers

<p>Fiscal policy (B)</p> Signup and view all the answers

<p>The national banking sector (D)</p> Signup and view all the answers

<p>Institutional investors (C)</p> Signup and view all the answers

<p>To improve workforce skills (C)</p> Signup and view all the answers

<p>It is the fastest growing sector in many mature economies. (A)</p> Signup and view all the answers

<p>Oligopoly (C)</p> Signup and view all the answers

<p>Consumer behavior (D)</p> Signup and view all the answers

<p>They provided funding for cross-subsidization. (C)</p> Signup and view all the answers

<p>Tertiary sector (B)</p> Signup and view all the answers

<p>They may charge excessively high prices. (B)</p> Signup and view all the answers

<p>The safeguards for Airbus (D)</p> Signup and view all the answers

<p>Specific company performance (C)</p> Signup and view all the answers

<p>Public utilities like water supply (D)</p> Signup and view all the answers

<p>Actions of one firm significantly affect others. (D)</p> Signup and view all the answers

<p>It is the main provider of part-time employment. (C)</p> Signup and view all the answers

<p>Automobile manufacturing (B)</p> Signup and view all the answers

<p>Enhanced product portfolio and shared R&amp;D costs (B)</p> Signup and view all the answers

<p>PESTLE (C)</p> Signup and view all the answers

<p>Psychological (C)</p> Signup and view all the answers

<p>They could consider relocating to England. (A)</p> Signup and view all the answers

<p>Inflation rates (C)</p> Signup and view all the answers

<p>Loss of competitive advantage (B)</p> Signup and view all the answers

<p>Changes in tax structure post-election (C)</p> Signup and view all the answers

<p>Both short-term operations and long-term strategy (D)</p> Signup and view all the answers

The value of the next best alternative forgone when making a choice.

Focuses on opportunity costs, self-interest maximization, and marginal decision-making.

The assumption that individuals make choices to maximize their own benefit.

Evaluating the benefits of doing a little more or a little less of something.

Choosing to spend time studying instead of watching a movie implies missing out on the enjoyment of the movie.

People make choices based on what they expect will create the most value, given their constraints and self-interest.

The goal of a business firm is to increase its profits as much as possible.

Economists use assumptions about self-interest to predict how groups (like businesses) will respond to changes in the market.

Goods that are not used up during consumption, like television sets.

Non-physical items provided for consumption, like attending a concert or staying in a hotel.

Natural resources, including forests, minerals, and the sea, used in production.

The cost of using land in production.

The workforce, people who work.

Compensation for labor.

Machinery, factories, and information technology used for production.

Decrease in value of capital over time due to wear and tear or obsolescence.

Stocks of raw materials, components, and finished goods held in warehouses, awaiting sale to retailers.

The return earned for making capital available to a business.

A person who combines resources to produce goods or services in a business.

The expertise provided by an entrepreneur to efficiently combine resources for production.

The study of individual businesses and how they behave.

A business employing less than 500 people.

Consumer demand, business supply, market pricing, firm costs, industry structure.

Mergers can drastically alter industry dynamics and competitive landscapes, prompting changes in pricing and market share.

Inflation, unemployment, economic growth, trade flows, exchange rates, and the balance of payments are important elements studied in macroeconomics.

Government policies related to taxation and spending.

Government actions to manage the economy by adjusting interest rates.

Government policies that aim to improve the efficiency and productivity of the economy.

Businesses owned by shareholders, often institutional investors.

Individuals or institutions who own shares of a company.

Organizations like pension funds, insurance companies and banks that invest large amounts of capital in various assets, including companies.

Part of the economy focused on providing services, like hairdressing, software, and consulting.

Market structure with a single seller, often state-owned, controlling the market.

A monopoly that arises because it would be inefficient to have multiple providers (e.g., utilities).

Market dominated by a small number of large firms.

Describes how companies compete in a market (e.g., monopoly, oligopoly).

Part of the economy focusing on processing raw materials into goods. Examples include manufacturing.

The ability of a business, company, or organization to influence the economy.

The different ways companies compete for customers in a market, like monopolies and oligopolies.

Methods a business uses to expand its operations, including reinvesting profits, borrowing, issuing shares, mergers, and acquisitions.

Combining two or more businesses into a single entity. Mergers involve joining forces, while acquisitions are one company taking over another.

Merging or acquiring pharmaceutical companies to expand product portfolios and share expensive research and development (R&D) costs.

The external factors impacting a business, including political, economic, social, technological, legal, and environmental influences.

A tool for evaluating the business environment by analyzing political, economic, social, technological, legal, and environmental/ethical factors.

Government policies, regulations, and changes that impact a business, such as taxes, trade agreements, and political stability.

Broad economic conditions that affect a business, such as inflation, interest rates, exchange rates, and consumer spending.

A business's ability to outperform its rivals through superior products, services, costs, or customer relationships.