Fundamentals of Economics and Business Environment Quiz

Focuses on the behavior of individuals and firms in making decisions regarding the allocation of limited resources.

The value of the next best alternative forgone when a decision is made.

Scottish economist and philosopher known for his work 'The Wealth of Nations', advocating free-market capitalism.

An economic system where the government does not interfere with the free market.

An acronym used to identify internal strengths and weaknesses, as well as external opportunities and threats to a business.

Total value of all goods and services produced within a country's borders, regardless of ownership.

Responsible for regulating the nation's monetary policy, supervising and regulating banks, and maintaining financial stability.

An index that measures the average change in prices paid by consumers for a basket of goods and services.

The use of government spending and taxation to influence the economy.

An economic system where private individuals own and control the factors of production for profit.

The depletion of a shared resource by individuals, acting in their own self-interest, contrary to the common good.

Selling goods in a foreign market at a price below their cost of production to gain a competitive advantage.

A measure of how consumers respond to changes in price.

Term coined by Adam Smith to describe how self-interest and competition can lead to economic prosperity.