Business Environment

Which of thes options best describes opportunity cost?

• The price of taking a chance

• The alternative you have to go without in a choice of two things

• The cost of opportunity

• The price you pay when you make a choice

Which of these are external factors that influence financial decisions?

• Price

• Personal

• Cultural

• Marketing

• Finance

Which best identify Internal factors influencing financial decisions?

• Age

• Gender

• Occupation

• Social Influences

• Marketing

A bus fare is $2.00 in the morning rush hour, but only $1.50 during the afternoon. The morning fare can be explained by the fact that the demand for morning bus rides is

• Price Elastic

• Price Inelastic

Which of these are more representative of Price Elastic

• Fresh fruit and vegetables

• Milk, Eggs and Bread

What is a cost-benefit analysis?

• The taxes that people pay when they buy something.

• A process that allows businesses and individuals to analyze where to spend money.

• The amount of money required to have or do something

What are consequences?

• something that is possible but is not yet real

• money charged to do something for a service

• task that demands time and effort to complete

• the results (positive or negative) of an action or decision

The opportunity cost of Australian households moving away from coal-powered energy to solar-powered energy includes:

(i) the loss of jobs in the coal industry,

(ii) a cleaner environment,

(iii) reduced coal production.

• (i), (ii) and (iii)

• (ii) and (iii)

• (iii) only

• (i) and (iii)

What is a cost?

• the item you receive after you pay
• giving up one thing for another
• the amount of money paid for something

What is a benefit?

• the item you receive after you pay for it
• giving up one thing for another
• the amount of money paid for something