Nature and Scope of Business Economics Chapter 1 Quiz

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.

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.