Business Economics BBA I MC

The cost of next best alternative foregone is:

• Marginal Cost
• Opportunity Cost
• Total Cost
• Diminishing Cost

It includes a reward for the riskiness of investments:

• Risk
• Loss
• Revenue
• Profit

“Earlier one receives the better it is”, it defines:

• Marginal Cost
• Opportunity Cost
• Time value of Money
• Sunk Cost

Macro Economics has:

• Narrow Scope
• Wide Scope
• Limited Scope
• No Scope

The demand of a commodity which is backed by purchasing power and willingness to spend money:

• Effective Demand
• Budget Line
• Indifference Curve
• PPC

Economics is best defined as

• How people make money and profits in the stock market.
• Making choices from an unlimited supply of goods and services.
• Making choices with unlimited wants but facing a scarcity of resources
• Controlling a budget for a household.

Assumptions of the Indifference Curve theory are:

• Rationality
• Ordinality
• Diminishing MRS
• All of the above

The goods having income elasticity equal to zero:

• Luxury Goods
• Necessity Goods
• Inferior Goods
• Superior Goods

For the law of demand, the assumption of ceteris paribus means that all variables are held constant except:

• Consumer tastes and preferences
• Consumer income
• Own price and quantity demanded.
• The number of consumers in the market.

The slope of the demand curve for butter shows that an increase in the price of butter leads to

• A decline in the amount of butter available
• An increase in demand for butter
• An expected decline in the price of butter
• A decrease in demand for butter