Business is the organized efforts and activities of individuals to produce and sell goods and services for profit. As a student how will you answer the top 15 examination question and answer for ND1 business students in polytechnics?
1.Q.Define comparative poverty
Ans. Comparative poverty is recognizing that you are poor and sensing that a better financial life exists in a nearby location
2.Q.Opportunity cost exists because
Ans. Opportunity costs exist because companies need to make mutually exclusive choices.
3.Q.Treasury bonds have what maturity date?
Ans. The maturity date of a bond is the date at which the initial investment is returned to you.
4.Q.Define economies of scale
Ans. Economies of scale occur when the cost of producing individual items decreases as a larger volume is created.
5.Q.What is a significant difference between socialism and capitalism?
Ans. The biggest difference between capitalism and socialism is in who has the power to control the economy. In socialism, the economy is controlled and regulated by the government. In capitalism, individual people control the market through their decision making, demand, and supply.
6.Q.What is the law of diminishing marginal utility?
Ans. The law of diminishing marginal utility states that as people continue to consume a good, their utility from the next unit of consumption will be less.
7.Q.What is import substitution?
Ans. Import substitution, or import substitution industrialization, is an economic policy in which a nation seeks to eliminate or decrease the number of imports it receives, opting to produce domestically instead. It’s a policy that promotes economic isolation as a way for a nation to be self-sufficient and, in doing so, benefit its people through employment and prices.
8.Q.Define utility in economics.
Ans. The amount of value an item or service has to a consumer is called its utility in economics.
9.Q.Do all capitalist countries practice the same form of capitalism?
Ans.No, not all capitalist countries practice the same form of capitalism. In fact, there can be major differences even in regions that are similar
10.Q.In capitalist economies, prices are
Ans. In capitalist economies, prices are determined by the laws of supply and demand.
11.QHow is the value of a good or service determined?
Ans. The value of a good or service is determined by a system known as supply and demand.
12.Q.Who is Milton Friedman?
Ans. Milton Friedman (1912-2006) was an American economist. He attended Rutgers where he studied mathematics and economics. He furthered his economic studies at Columbia University, where he graduated with a Ph.D. in 1946. He devoted his career to economics, eventually working for the Department of Treasury.
13.Q.What effect will a drop in price most likely have?
Ans. Running a successful business depends not only on making good products and providing good service but also by making good decisions and predictions. One decision that a business needs to make is how much to charge for an item or service in order to recover costs and make a profit. This decision also depends on knowing how a higher or lower price will affect likely sales.
14.Q.What is the law of increasing costs?
Ans. The law of increasing costs is the concept that states, as the production of a good increase, so does the opportunity cost; when all factors of production have reached maximum output, it will cost more than average to manufacture more goods
15.Q.How do tariffs work to protect infant industries?
Ans. Tariffs, or taxes placed on imported goods, are often used as a protective measure for infant industries because it raises the price of an imported good, which encourages consumers at home to buy a product or service from a domestic business.