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AQA A-Level Business Paper 1Questions And Answers AQA A-Level Business Paper 1Questions And AnswersAQA A-Level Business Paper 1Questions And AnswersAQA A-Level Business Paper 1Questions And AnswersAQA A-Level Business Paper 1Questions And AnswersAQA A-Level Business Paper 1Questions And Answers

Economics - social science dealing with how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources Business Economics - other term for managerial economics The Great Hunger - Other term use for Irish potato famine in 1845 accounting profit - total amount of money taken in from sales minus the dollar cost of producing goods and services Pragmatism - solving problems in a sensible way that suits conditions that really exist now, rath...

General determinants of demand - Normal vs. inferior goods Substitute and complementary goods Other determinants, such as income, demography preferences, fashion Range of possible elasticities - E=0 - stiff demand E<1 - inelastic demand E = 1 - unitary-elastic demand E>1 - elastic demand E -> inf - infinitely elastic demand Determinants of elasticity of demand - Character of good Availability of substitutes Budget share - the higher the share the higher the elasticit...

A coordination problem usually occurs in situations where there is - more than one equilibrium. When a player randomizes over several available actions to make her current action less predictable, then a ______________________ strategy has been played. - mixed strategy. . A strategy that results in the highest payoff to a player regardless of the opponent's action is called - dominant strategy. Refer to the above game, the dominant strategy for player 2: - is T1 Refer to the a...

Which of the following will increase the break-even quantity? a. A decrease in overall fixed costs b. A decrease in the marginal costs c. A decrease in the price level d. An increase in price level - c. A decrease in the price level An increase in the break-even quantity implies that it takes you longer (need to produce and sell more units) before you can break even. In that case, an increase in FC, an increase in MC, or a reduction in price will cause the break-even quantity to ...

Two steps to problem solving - 1) figure out why mistakes are being made 2) figure out how to prevent future mistakes rational-actor paradigm - assumption that people act rationally, optimally and self interestedly To change behavior, what should you change? - incentives What is a good workplace incentive? - rewarding good performance What three questions should you ask to analyze a problem? - 1) Who is making the bad decision? 2) Does the decision maker have enough information to...

The one thing that Unites all economists is their use of : - The rational-Actor Paradigm A well-designed organization is one in which employee incentives are aligned with: - Organizational Goals If people behave rationally, optimally, and self-interestedly, a bad decision occurs for which of these reason(s)? - 1) The decision-maker did not have enough information to make a good decision. 2) The decision -maker did not have the incentive to make a good decision. There are three levers...

What is Managerial Economics? - The study of how to allocate scarce resources to efficiently achieve managerial goals, like profit maximization. What is the focus of Managerial Economics? - Making managerial decisions to maximize profit or the value of the firm, using tools from microeconomics and some macroeconomics. What is Accounting Profit? - Total revenue minus explicit costs (costs shown in financial statements). Formula: Accounting Profit = Total Revenue - Explicit Costs W...

Management - getting work done through others What is a Manager - Someone whose primary responsibility is to carry out the management process --> plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources monitor - seek and receive information from a variety of sources Disseminator - passing info on to others through memos, e-mails, phone calls. Spokesperon - Transmit information to people outside the organization.

Economics - The study of the production, distribution, and consumption of goods and services Economics - It the study of choice related to the allocation of scarce resources. Managerial Economics - is a branch of economics that applies microeconomics concept methods, and analysis to examine how an organization or business can achieve its aims and objectives most efficiently through decision-making. Managerial Economics - purpose of managerial economics is to provide economic method...