Business Economics – Questions With Verified
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Practice questions for this set
Learn 1 /7 Study with Learn
Diseconomies of scale are increases in total av. costs and occur when company
expands too much to be efficient (beyond the minimum efficient scale).
Choose an answer
1 Define 'Production'. 2 How can profit be calculated?
What are the role of entrepreneurs [in
3 4 Define 'Diseconomies of Scale'.
the economy]?
Don't know?
Terms in this set (61)
Production is a process involving the conversion of
Define 'Production'.
resources into goods and services.
Productivity is the amount of goods and services
Define 'Productivity'. (output) created in a given amount of time with a given
amount of resources.
, What are the 4 Factors of Capital, Enterprise, Land and Labor.
Production?
Working/ Circulating Capital: Stocks of raw materials/
components that are used up during production and/or
What the two different converted into the final product.
types of capital? Fixed Capital: (Artificial) Resources that are not used up
during production and/or converted into the final
product.
Entrepreneurs:
What are the role of - Come up with the business idea
entrepreneurs [in the - Are business owners
economy]? - Are risk-takers
- Manage the Factors of Production
By:
- Providing Incentives
How could [the level of]
- Upgrading/ Using more efficient machinery
productivity be raised?
- Providing (skill) training for workers
- Introducing new worker practices
The Primary Sector covers the extraction/ production of
raw materials. The Secondary Sector covers the
Define and explain the
conversion of raw materials into finished/ semi- finished
Sectors of the Economy.
goods. The Tertiary Sector covers the provision of
services.
Define 'De- A decline in manufacturing in an economy.
industrialization'.
What are the 2 different Fixed costs (Overheads) remain the same and do not
types of costs? vary with output. Variable costs vary with output.
Total costs are the costs to a firm of producing all
Define 'Total Costs'.
output over a period of time. TC = FC + VC
Average cost is the cost of producing a single unit of
Define 'Average Cost'. output.
Av. Cost = (Total Cost) / (Quantity Produced)
Total revenue is the amount of money a firm receives
Define 'Total Revenue'.
from selling its output. Total Revenue = Price * Quantity
How can profit be Profit = Total revenue - Total costs
calculated?
Solutions
Save
Practice questions for this set
Learn 1 /7 Study with Learn
Diseconomies of scale are increases in total av. costs and occur when company
expands too much to be efficient (beyond the minimum efficient scale).
Choose an answer
1 Define 'Production'. 2 How can profit be calculated?
What are the role of entrepreneurs [in
3 4 Define 'Diseconomies of Scale'.
the economy]?
Don't know?
Terms in this set (61)
Production is a process involving the conversion of
Define 'Production'.
resources into goods and services.
Productivity is the amount of goods and services
Define 'Productivity'. (output) created in a given amount of time with a given
amount of resources.
, What are the 4 Factors of Capital, Enterprise, Land and Labor.
Production?
Working/ Circulating Capital: Stocks of raw materials/
components that are used up during production and/or
What the two different converted into the final product.
types of capital? Fixed Capital: (Artificial) Resources that are not used up
during production and/or converted into the final
product.
Entrepreneurs:
What are the role of - Come up with the business idea
entrepreneurs [in the - Are business owners
economy]? - Are risk-takers
- Manage the Factors of Production
By:
- Providing Incentives
How could [the level of]
- Upgrading/ Using more efficient machinery
productivity be raised?
- Providing (skill) training for workers
- Introducing new worker practices
The Primary Sector covers the extraction/ production of
raw materials. The Secondary Sector covers the
Define and explain the
conversion of raw materials into finished/ semi- finished
Sectors of the Economy.
goods. The Tertiary Sector covers the provision of
services.
Define 'De- A decline in manufacturing in an economy.
industrialization'.
What are the 2 different Fixed costs (Overheads) remain the same and do not
types of costs? vary with output. Variable costs vary with output.
Total costs are the costs to a firm of producing all
Define 'Total Costs'.
output over a period of time. TC = FC + VC
Average cost is the cost of producing a single unit of
Define 'Average Cost'. output.
Av. Cost = (Total Cost) / (Quantity Produced)
Total revenue is the amount of money a firm receives
Define 'Total Revenue'.
from selling its output. Total Revenue = Price * Quantity
How can profit be Profit = Total revenue - Total costs
calculated?
