Objectives of Business (Grade 11 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the primary objective that drives most businesses?
What is the primary objective that drives most businesses?
Profit maximisation
What does opportunity cost refer to in business?
What does opportunity cost refer to in business?
Value of next best option given up
Which of these is an example of explicit costs in accounting profit?
Which of these is an example of explicit costs in accounting profit?
Employee wages and salaries
What does accounting profit fail to include?
What does accounting profit fail to include?
Implicit costs
How is economic profit calculated?
How is economic profit calculated?
Revenue minus explicit & opportunity costs
What does normal profit represent?
What does normal profit represent?
Minimum profit needed to survive
Can a business have positive accounting profit but negative economic profit?
Can a business have positive accounting profit but negative economic profit?
Yes, this is entirely possible
Sarah's bakery earns 100,000 USD revenue, 70,000 USD costs, foregoes 25,000 USD salary. Economic profit?
Sarah's bakery earns 100,000 USD revenue, 70,000 USD costs, foregoes 25,000 USD salary. Economic profit?
5,000 USD
Why is economic profit more accurate than accounting profit?
Why is economic profit more accurate than accounting profit?
It includes opportunity costs
Normal profit occurs at what point for a business?
Normal profit occurs at what point for a business?
Break-even with opportunity costs