Untitled Deck Flashcards
1
Q
What is business economics?
A
Business economics is the study of how businesses manage scarce resources.
2
Q
What is the fundamental premise of business economics?
A
The premise is that there will never be enough resources to completely satisfy human wants.
3
Q
Why is the concept of scarcity important in economics?
A
It is fundamental to everything else in economics.
4
Q
What choices do businesses make regarding resources?
A
Businesses are constantly making choices on how to allocate scarce resources.
5
Q
What do businesses weigh when making resource allocation decisions?
A
They weigh the relative benefits of each course of action.
6
Q
What is the goal of businesses when allocating resources?
A
To choose the course of action which maximises profit.
