Business / Economics Definitions Quiz

What is the term for a good or service essential for living?

• Need

• Economic Problem

• Scarcity

• Want

What is the next best alternative given up by choosing another item?

• Added value

• Division of labour

• Specialization

• Opportunity cost

Which sector of industry provides services to consumers and other sectors of industry?

• Quaternary sector

• Tertiary sector

• Secondary sector

• Primary sector

What is the term for the money invested into the business by the owners?

• Internal Growth

• Capital employed

• Entrepreneur

• Capital

What is the term for a business owned by one person?

• Limited company

• Public limited company

• Sole trader

• Partnership

What is the term for the surplus after total costs have been subtracted from revenue?

• Depreciation

• Net profit

• Retained profit

• Gross profit

What is the term for the value of income, and it falls when prices rise faster than money income?

• Real income

• Disposable income

• Gross Domestic Product

• Inflation

What is the term for the total value of the output of goods and services in a country in one year?

• Unemployment

• Recession

• Gross Domestic Product

• Economic growth

What is the term for the increase in the average price level of goods and services over time?

• Recession

• Inflation

• Unemployment

• Economic growth

What is the term for the ability of a business to pay back its short-term debts?

• Liquidity

• Profitability

• Balance of payments

• Illiquid