Scope of Business: Economics Chapter 1 Quiz and Flashcards

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Questions and Answers

What is the basic objective of all economic activities?

To create net value added (correct)

To maximize production

To generate profit

To minimize costs

Which of the following is not a type of business mentioned in the text?

Banking

Agriculture

Technology (correct)

Mining

What are the inputs referred to in economic activities?

Land, labor, capital, and entrepreneurship (correct)

Employees and customers

Goods and services

Marketing and advertising

What does business economics incorporate elements of?

Both microeconomics and macroeconomics Signup and view all the answers

Which of the following are the basic economic problems?

What to produce, how to produce, for whom to produce Signup and view all the answers

What is the meaning and nature of business economics described in the learning outcomes?

The study of economic activities related to businesses only Signup and view all the answers

What is the main purpose of any economic activity such as production, consumption, distribution, exchange, and inventory accumulation?

To create surplus or profit Signup and view all the answers

What did the term 'Economics' originally mean, based on its Greek origin?

Household management Signup and view all the answers

In the context of economic enterprises, what decisions does a production unit have to make?

What to produce, When to produce, For whom to produce, Why to produce Signup and view all the answers

What is considered as the first modern work of Economics?

`The Wealth of Nations' by Adam Smith Signup and view all the answers

What was Economics known as till the 19th century?

'Political Economy' Signup and view all the answers

What is the primary aim of Non-Profit Organisations (NPOs) according to the text?

'Social benefits' Signup and view all the answers

What is the original meaning of the term 'Oikonomia' in Greek?

'Household management' Signup and view all the answers

What did Adam Smith's book 'The Wealth of Nations' contribute to Economics?

First modern work of Economics Signup and view all the answers

What type of goods are consumer goods, producer goods, capital goods, private goods, public goods, essential goods, and non-essential goods?

'Goods' Signup and view all the answers

What decisions does a finance enterprise dealing with funds have to make?

When to raise funds. Where to direct the use of funds. Maturity and other terms of funds. Signup and view all the answers

Study Notes

Basic Objectives and Concepts

The basic objective of all economic activities is to satisfy human wants and needs.
The term 'Economics' originally meant "household management" based on its Greek origin, derived from the words 'oikos' meaning house and 'nomos' meaning management.
The original meaning of the term 'Oikonomia' in Greek is "household management".

Types of Business and Economic Problems

Business economics incorporates elements of economics, management, and decision-making.
The basic economic problems are what, how, and for whom to produce.
A production unit in an economic enterprise has to make decisions about what, how, and for whom to produce.

Goods and Services

Consumer goods, producer goods, capital goods, private goods, public goods, essential goods, and non-essential goods are all types of goods.

Non-Profit Organisations and Finance

The primary aim of Non-Profit Organisations (NPOs) is to provide social services and benefits to society.
A finance enterprise dealing with funds has to make decisions about investment, financing, and dividend distribution.

History of Economics

Adam Smith's book 'The Wealth of Nations' is considered a foundational work of modern economics, contributing to the development of the field.
Economics was known as "Political Economy" until the 19th century.

Key Decisions

Economic activities involve inputs, which are the resources used to produce goods and services.
A business enterprise has to make decisions about production, consumption, distribution, exchange, and inventory accumulation.

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Description

Test your knowledge on the meaning and nature of business economics, the scope of business economics, and the incorporation of elements of macroeconomics. This quiz covers topics related to the introduction to business economics.