Business Week 2021 (Senior Contest)

What, according to the definition of opportunity cost, is sacrificed when a decision is taken?

• An identical alternative

• Any possible alternative

• The least valuable alternative

• The next best alternative

A person makes sandwiches at home for five hours each day. She makes 20 sandwiches per hour, and she sells each sandwich for $2 each. What is the opportunity cost if she takes a holiday on a working day?

• $2

• $40

• 20 sandwiches

• 100 sandwiches

For what would price elasticity of demand be used?

• Calculating current disposable income

• Calculating the rate of price inflation

• Identifying changes in consumer spending patterns

• Estimating changes in a company’s cost

What is likely to fall when the rate of unemployment falls?

• Business confidence

• Government welfare payments

• Consumer spending

• Government revenue

What does an economist mean by the factor of production called capital?

• Goods that can be used to produce other goods

• Money used to start a business

• Resources that cannot be replaced

• The profits of a company

What does net income mean?

• Income after allowing for price changes

• Income after paying regular household bills

• Income less tax and government deductions

• Income plus overtime payments

A demand curve shows the relationship between the quantity demanded and

• a change in income

• consumer tastes

• the price of the product

• the supply of the product

The short-run average variable cost of a firm will rise owing to

• the expansion of factory space

• an increase in the cost of labour

• an increase in the salaries of directors.

• the building of new warehouse

In the theory of consumer behaviour, the sum of all marginal utilities is

• average marginal utility

• the initial marginal utility

• total utility

• diminishing marginal utility

Payment of interests on loans and the repayment of capital sum at a future date is

• balance debt

• debt servicing

• debt relief

• debt retaking