BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Form utility usually applies only to services and not to goods. Economic utility is one of the four types of utility that satisfy wants. Selling snow tires to a customer during the first snowstorm of the season is an example of providing time utility.

Detailed explanation-2: -In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates.

Detailed explanation-3: -In a market economy, prices are set by the decisions of thousands of consumers and producers, each acting in their own self-interest. The profit motive and competition between businesses provide an incentive for producers to deliver the most desirable, cost-effective products at the best possible price.

Detailed explanation-4: -When productive resources are used for capital formation, fewer consumer goods are produced. If a country did not produce any capital goods, it could not produce many consumer goods.