#1
Which of the following is a basic economic concept?
Supply and demand
ExplanationFundamental forces determining prices and quantities in a market economy.
#2
What is the primary purpose of a business plan?
To secure funding and guide the organization
ExplanationDocument outlining business goals, strategies, and financial projections to attract investors and guide operations.
#3
What is the role of a central bank in an economy?
To regulate and control the money supply and interest rates
ExplanationInstitution responsible for monetary policy, currency issuance, and interest rate regulation.
#4
What is the primary function of the Federal Reserve in the United States?
To regulate and stabilize the monetary and financial system
ExplanationCentral banking system responsible for monetary policy, banking supervision, and financial stability in the U.S.
#5
What is the difference between a recession and a depression in the context of economics?
A depression is more severe than a recession
ExplanationEconomic downturn characterized by more severe and prolonged contraction in economic activity than a recession.
#6
What is GDP in the context of economics?
Gross Domestic Product
ExplanationTotal value of all goods and services produced within a country's borders in a specific time period.
#7
In business, what does ROI stand for?
Return on Investment
ExplanationMeasure of profitability, indicating the return on a financial investment relative to its cost.
#8
In economics, what does the term 'opportunity cost' refer to?
The highest-valued alternative that must be forgone to pursue a certain action
ExplanationThe value of the next best alternative given up when a decision is made.
#9
What does the term 'Monopoly' mean in economics?
A market structure with a single seller dominating the market
ExplanationMarket situation where a single seller controls the entire supply of a product.
#10
What is the purpose of a balance sheet in accounting?
To show the financial position of a company at a specific point in time
ExplanationFinancial statement detailing a company's assets, liabilities, and equity at a particular date.
#11
What is the purpose of SWOT analysis in business?
Strengths, Weaknesses, Opportunities, Threats
ExplanationStrategic planning tool evaluating internal and external factors affecting a business.
#12
Who is known as the 'Father of Economics'?
Adam Smith
ExplanationScottish economist and philosopher, a key figure in the development of classical economics.
#13
What is inflation in the context of economics?
An increase in the general price level of goods and services
ExplanationRise in the overall price level of goods and services in an economy over time.
#14
What is the Law of Diminishing Marginal Utility in economics?
The more you have of a good, the less satisfaction you get from each additional unit
ExplanationConcept stating that the additional satisfaction gained from consuming each additional unit of a good decreases.
#15
In business, what does the acronym KPI stand for?
Key Performance Indicator
ExplanationQuantifiable metric used to evaluate the success of an organization, project, or process.