This quiz works best with JavaScript enabled. Home > Economics > Applied Economics > Applied Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Applied Economics Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Finding out what possible business ideas you can pick up from what already exists: A) Creating business. B) Organizing business. C) Exploring business. D) Planning business. Show Answer Correct Answer: C) Exploring business. 2. What is the law of demand? I. As price increases consumers will purchase less of the specific commodity. II. As price increases consumers will purchase more of the specific commodity. III. As price decreases consumers will purchase more of the specific commodity. IV. As price decreases consumers will purchase less of the specific commodity. A) I and II. B) I and III. C) I, II, and III. D) I, II, III and IV. Show Answer Correct Answer: B) I and III. 3. A change in price creates an equal change in quantity demanded. A) Perfectly Elastic Demand. B) Unitary Demand. Show Answer Correct Answer: B) Unitary Demand. 4. In this market structure, one competitor doesn't have an edge over the others since all sellers are equal A) Monopoly. B) Monopolistic Competition. C) Oligopoly. D) Pure Competition. Show Answer Correct Answer: D) Pure Competition. 5. Seller make the product available at introductory prices lower than the other market A) Impact on the consumer. B) Impact on the supplier & investor. C) Impact on the government. D) Impact on the household & community. Show Answer Correct Answer: A) Impact on the consumer. 6. Foreign currency inflow less outflow payments A) Balance of Accounts. B) Balance of Payments. Show Answer Correct Answer: B) Balance of Payments. 7. The theory of production explains the principles by which a business firm decides how much of each commodity that it will produce. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 8. What is cost-benefit analysis used for? A) To assess the long-term impact of an action. B) To evaluate whether the benefits of an action outweigh the costs. C) To determine the total cost of an action. D) To compare the costs of different actions. Show Answer Correct Answer: B) To evaluate whether the benefits of an action outweigh the costs. 9. The kind of market structure with a lesser degree of market concentration but still with asignificant market power is observed since few sellers are colluding or forming a cartel to set theprice that would give the maximum profit for the industry. A) Oligopoly. B) Perfect Competition. C) Monopsony. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 10. A legal entity that is separate and distinct from its owners A) Sole proprietorship. B) Partnership. C) Corporation. D) Cooperative. Show Answer Correct Answer: C) Corporation. 11. What is the significance of applied economics? A) It focuses solely on economic theory without real-world implications. B) It has no practical application in the real world. C) It is only relevant for academic research. D) It provides valuable insights for decision-makers in various sectors. Show Answer Correct Answer: D) It provides valuable insights for decision-makers in various sectors. 12. Economic concept that measures the ability of parties in negotiation to influence each other A) Competitive rivalry. B) Treat of new entrants. C) Treat of new substitutes. D) Bargaining power. Show Answer Correct Answer: D) Bargaining power. 13. Many firms, freedom of entry, homogeneous products, normal profit. A) Perfect Competition. B) Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 14. Is Economics is also a Social Science? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 15. What notion of viability states that a portion of the profit will be distributed as taxes and interest on debts like bank loans. A) Viability as Growth. B) Viability as a Shareholder value. C) Viability as a future profit. D) Viability as an Exchange Value. Show Answer Correct Answer: B) Viability as a Shareholder value. 16. Which one of the following is a supply side policy which the government could use to help meet its economic objectives? A) An improved apprenticeship program. B) An increase in the rate of corporation tax. C) Higher unemployment benefits. D) Quantitative easing. Show Answer Correct Answer: B) An increase in the rate of corporation tax. 17. This is an economic model that illustrates the flow of factors of production in the economy. A) Factor income. B) Production Possibility Frontier. C) Cicular flow diagram. D) Factor input. Show Answer Correct Answer: C) Cicular flow diagram. 18. The demand curve is always downward sloping due to the law of diminishing marginal utility. A) True. B) False. Show Answer Correct Answer: A) True. 19. What is the branch of economics that focuses on the practical application of economic theories and principles to analyze and address real-world issues and challenges? A) Economics. B) Applied Economics. C) Scarcity. D) Opportunity Cost. Show Answer Correct Answer: B) Applied Economics. 20. Determined by the willingness and ability of producers to sell a product (a good or a service) at different prices. A) Demand. B) Supply. C) Market Demand. D) Law of supply. Show Answer Correct Answer: B) Supply. ← PreviousNext →Related QuizzesEconomics QuizzesApplied Economics Quiz 1Applied Economics Quiz 2Applied Economics Quiz 3Applied Economics Quiz 4Applied Economics Quiz 5Applied Economics Quiz 6Applied Economics Quiz 7Applied Economics Quiz 9Applied Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books