BUSINESS ECONOMICS EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

BUSINESS ECONOMICS EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY

1. Business economics studies:

A. Cooking systems
B. Application of economic theory in business decisions
C. HR only
D. Sports only
Answer: B
It applies economics to managerial decision-making.



2. Firm means:

A. Market
B. Business organization producing goods/services
C. HR firm
D. Cooking firm
Answer: B
A production unit.



3. Profit maximization means:

A. Minimizing output
B. Increasing profit difference between revenue and cost
C. HR maximization
D. Cooking maximization
Answer: B
Core business goal.



4. Revenue is:

,A. Cost
B. Income from sales
C. HR revenue
D. Cooking revenue
Answer: B
Money earned.



5. Cost refers to:

A. Profit
B. Expense incurred in production
C. HR cost
D. Cooking cost
Answer: B
Production expenditure.



6. Total cost is:

A. Fixed only
B. Fixed + variable costs
C. HR cost
D. Cooking cost
Answer: B
All costs combined.



7. Fixed cost is:

A. Changes with output
B. Does not change with output
C. HR fixed cost
D. Cooking fixed cost
Answer: B
Constant cost.



8. Variable cost is:

, A. Constant
B. Changes with output
C. HR variable
D. Cooking variable
Answer: B
Depends on production.



9. Marginal cost is:

A. Total cost
B. Extra cost of producing one more unit
C. HR cost
D. Cooking cost
Answer: B
Incremental cost.



10. Average cost is:

A. Total revenue
B. Total cost per unit
C. HR cost
D. Cooking cost
Answer: B
Cost per output.



11. Marginal revenue is:

A. Total cost
B. Extra revenue from selling one more unit
C. HR revenue
D. Cooking revenue
Answer: B
Additional income.



12. Demand refers to: