Theme 1 part 1

What is the economic problem related to scarcity?

• Limited wants and infinite resources

• Limited wants and finite resources

• Unlimited wants and finite resources

• Unlimited wants and infinite resources

Which of the following is a business objective focused on maximizing sales?

• Satisficing

• Cost efficiency

• Profit maximisation

• Sales maximisation

What is the term for the cost of the next best alternative foregone?

• Sunk cost

• Fixed cost

• Opportunity cost

• Variable cost

Who are considered stakeholders in a business?

• Only employees

• Only shareholders

• Economic agents

• Only customers

What is the role of an entrepreneur in the economy?

• To organize factors of production

• To consume goods

• To regulate markets

• To save money

Which of the following is a non-financial motive for entrepreneurship?

• Revenue

• Cost reduction

• Independence

• Profit

Which of the following is NOT a factor of production?

• Capital

• Enterprise

• Technology

• Land

What is an advantage of division of labor?

• Higher training costs

• Increased boredom

• Increased efficiency

• Decreased productivity

Which factor can cause a shift in the demand curve?

• Number of firms in the industry

• Introduction of new technology

• Changes in real incomes

• Changes in production costs

What does the supply curve represent?

• Consumer demand

• Producer supply

• Market equilibrium

• Government intervention