BA 101 Midterm Final Exam Questions
and Answers Verified Solutions Latest
Update 2026/2027
Question:
Contract.
Answer:
A legally binding agreement between two or more parties that outlines the rights and obligations of
each party.
Question:
Transaction.
Answer:
An instance of buying or selling something; the action of conducting business.
Question:
What is the definition of cost in economics?.
Answer:
Cost refers to the value of resources used to produce goods or services.
Question:
How is benefit defined in economic terms?.
Answer:
Benefit is the gain or advantage obtained from a good or service.
Question:
What does value represent in economics?.
,Answer:
Value is a function of scarcity and need.
Question:
What is the significance of competition in business?.
Answer:
Competition drives innovation, efficiency, and the allocation of resources within a community.
Question:
What are technological innovations in the context of competition?.
Answer:
Technological innovations are advancements that provide a competitive advantage over process
innovations.
Question:
What are the key elements of a free market system?.
Answer:
Private property, freedom of choice, fair competition, and the right to keep profits.
Question:
Who is Adam Smith?.
Answer:
Adam Smith is known as the father of modern economics and is famous for his work on the
principles of free market capitalism. He envisioned creating more resources so that everyone could
become wealthier.
Question:
What is the primary reason for US business success?.
, Answer:
A freely operating economy and favorable social climate.
Question:
How do global politics and economics affect US business?.
Answer:
They have a significant influence on US business operations and strategies.
Question:
What is economics?.
Answer:
The study of how society chooses to employ resources, illustrated by the comparison of North
Korea and South Korea.
Question:
What does resource development study?.
Answer:
How to increase the availability and efficiency of resources.
Question:
What was Thomas Malthus's view on wealth distribution?.
Answer:
He believed that if wealth is concentrated among rich landowners, the majority will remain
peasants, leading to overpopulation and resource scarcity.
Question:
What did Thomas Carlyle refer to economics as?.
Answer:
He called economics 'dismal'.
and Answers Verified Solutions Latest
Update 2026/2027
Question:
Contract.
Answer:
A legally binding agreement between two or more parties that outlines the rights and obligations of
each party.
Question:
Transaction.
Answer:
An instance of buying or selling something; the action of conducting business.
Question:
What is the definition of cost in economics?.
Answer:
Cost refers to the value of resources used to produce goods or services.
Question:
How is benefit defined in economic terms?.
Answer:
Benefit is the gain or advantage obtained from a good or service.
Question:
What does value represent in economics?.
,Answer:
Value is a function of scarcity and need.
Question:
What is the significance of competition in business?.
Answer:
Competition drives innovation, efficiency, and the allocation of resources within a community.
Question:
What are technological innovations in the context of competition?.
Answer:
Technological innovations are advancements that provide a competitive advantage over process
innovations.
Question:
What are the key elements of a free market system?.
Answer:
Private property, freedom of choice, fair competition, and the right to keep profits.
Question:
Who is Adam Smith?.
Answer:
Adam Smith is known as the father of modern economics and is famous for his work on the
principles of free market capitalism. He envisioned creating more resources so that everyone could
become wealthier.
Question:
What is the primary reason for US business success?.
, Answer:
A freely operating economy and favorable social climate.
Question:
How do global politics and economics affect US business?.
Answer:
They have a significant influence on US business operations and strategies.
Question:
What is economics?.
Answer:
The study of how society chooses to employ resources, illustrated by the comparison of North
Korea and South Korea.
Question:
What does resource development study?.
Answer:
How to increase the availability and efficiency of resources.
Question:
What was Thomas Malthus's view on wealth distribution?.
Answer:
He believed that if wealth is concentrated among rich landowners, the majority will remain
peasants, leading to overpopulation and resource scarcity.
Question:
What did Thomas Carlyle refer to economics as?.
Answer:
He called economics 'dismal'.
