BA 101 MIDTERM FINAL PAPER 2026 FULL
QUESTIONS AND CORRECT ANSWERS
◉ Contract.
Answer: A legally binding agreement between two or more parties
that outlines the rights and obligations of each party.
◉ Transaction.
Answer: An instance of buying or selling something; the action of
conducting business.
◉ What is the definition of cost in economics?.
Answer: Cost refers to the value of resources used to produce goods
or services.
◉ How is benefit defined in economic terms?.
Answer: Benefit is the gain or advantage obtained from a good or
service.
◉ What does value represent in economics?.
Answer: Value is a function of scarcity and need.
,◉ What is the significance of competition in business?.
Answer: Competition drives innovation, efficiency, and the allocation
of resources within a community.
◉ What are technological innovations in the context of competition?.
Answer: Technological innovations are advancements that provide a
competitive advantage over process innovations.
◉ What are the key elements of a free market system?.
Answer: Private property, freedom of choice, fair competition, and
the right to keep profits.
◉ Who is Adam Smith?.
Answer: Adam Smith is known as the father of modern economics
and is famous for his work on the principles of free market
capitalism. He envisioned creating more resources so that everyone
could become wealthier.
◉ What is the primary reason for US business success?.
Answer: A freely operating economy and favorable social climate.
◉ How do global politics and economics affect US business?.
, Answer: They have a significant influence on US business operations
and strategies.
◉ What is economics?.
Answer: The study of how society chooses to employ resources,
illustrated by the comparison of North Korea and South Korea.
◉ What does resource development study?.
Answer: How to increase the availability and efficiency of resources.
◉ What was Thomas Malthus's view on wealth distribution?.
Answer: He believed that if wealth is concentrated among rich
landowners, the majority will remain peasants, leading to
overpopulation and resource scarcity.
◉ What did Thomas Carlyle refer to economics as?.
Answer: He called economics 'dismal'.
◉ What is the 'invisible hand' theory?.
Answer: A concept introduced by Adam Smith, suggesting that
individuals' efforts to pursue their own interest may benefit society
as a whole.
QUESTIONS AND CORRECT ANSWERS
◉ Contract.
Answer: A legally binding agreement between two or more parties
that outlines the rights and obligations of each party.
◉ Transaction.
Answer: An instance of buying or selling something; the action of
conducting business.
◉ What is the definition of cost in economics?.
Answer: Cost refers to the value of resources used to produce goods
or services.
◉ How is benefit defined in economic terms?.
Answer: Benefit is the gain or advantage obtained from a good or
service.
◉ What does value represent in economics?.
Answer: Value is a function of scarcity and need.
,◉ What is the significance of competition in business?.
Answer: Competition drives innovation, efficiency, and the allocation
of resources within a community.
◉ What are technological innovations in the context of competition?.
Answer: Technological innovations are advancements that provide a
competitive advantage over process innovations.
◉ What are the key elements of a free market system?.
Answer: Private property, freedom of choice, fair competition, and
the right to keep profits.
◉ Who is Adam Smith?.
Answer: Adam Smith is known as the father of modern economics
and is famous for his work on the principles of free market
capitalism. He envisioned creating more resources so that everyone
could become wealthier.
◉ What is the primary reason for US business success?.
Answer: A freely operating economy and favorable social climate.
◉ How do global politics and economics affect US business?.
, Answer: They have a significant influence on US business operations
and strategies.
◉ What is economics?.
Answer: The study of how society chooses to employ resources,
illustrated by the comparison of North Korea and South Korea.
◉ What does resource development study?.
Answer: How to increase the availability and efficiency of resources.
◉ What was Thomas Malthus's view on wealth distribution?.
Answer: He believed that if wealth is concentrated among rich
landowners, the majority will remain peasants, leading to
overpopulation and resource scarcity.
◉ What did Thomas Carlyle refer to economics as?.
Answer: He called economics 'dismal'.
◉ What is the 'invisible hand' theory?.
Answer: A concept introduced by Adam Smith, suggesting that
individuals' efforts to pursue their own interest may benefit society
as a whole.
