Business Economics and Business and Commercial Knowledge - 9 mtp MTP

2. Sarah, runs a lemonade stall, her decision-making process involves assessing the demand for her lemonade, pricing strategies, and maximizing her profit within the limited scope of her small business. Which level of the economy does Sarah's lemonade stall represent ? (A) Macro Economy (B) Global Economy (C) Micro Economy (D) National Economy

3. In which economy, the material means of production i.e. factories, capital, mines, etc. are owned by the whole community represented by the State ? (A) Socialist Economy (B) Capitalist Economy (C) Mixed Economy (D) Communist Economy

4. Which of the following is related with the total arrangements for the production and distribution of goods and services in a society? (A) Economic Problem (B) Economic Choice (C) Economic System (D) Economic Institution

Suppose the price elasticity of demand of a firm for its product is -1.2. If the price of the product is increased by 5%, then it is most probable that: (A) Both total revenue and profit would increase. (B) Both total revenue and profit would decrease, (C) Total revenue would decrease but profit may increase. (D) Total revenue would increase but profit may decrease. The demand function of a product X (in kg.) is expressed as Q = 1000-50P, where…