Business Management and Economics Quiz

Economies of scale occur when the per-unit cost of production decreases with higher output levels.

SWOT analysis involves assessing a business's internal Strengths and Weaknesses, as well as external Opportunities and Threats.

The primary goal of financial management is to enhance the wealth of shareholders.

The marketing mix includes Product, Price, Place, and Promotion; Performance is not a component.

The Federal Reserve manages monetary policy, influencing money supply and interest rates to stabilize the economy.

ROI stands for Return on Investment, representing the profitability of an investment.

A market economy allocates resources based on supply and demand forces in the open market.

ROI measures the return on an investment, calculated as the percentage of net profit relative to the investment cost.

A monopoly is characterized by a single seller dominating the market with substantial market power.

Price elasticity of demand is a microeconomic concept; macroeconomic variables focus on the economy as a whole.

Oligopoly features a market dominated by a small number of large firms.

Gross profit is calculated by subtracting the cost of goods sold from total revenue.

Perfect competition is characterized by many buyers and sellers with no barriers to entry or exit.

A balance sheet summarizes a company's assets, liabilities, and equity at a specific moment.

CPI tracks the average price change of a basket of goods and services, reflecting inflation or deflation.

Elasticity of demand measures how sensitive quantity demanded is to changes in price.

Monopolistic competition involves firms offering differentiated products, allowing them some pricing power in the market.