This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Short run marginal costs eventually increase because of the effects of: A) Increasing marginal product. B) Diminishing marginal product. C) Increasing fixed costs. D) Diseconomies of scale. Show Answer Correct Answer: B) Diminishing marginal product. 2. The best way to be a good decision-maker in a large business firm (and make some good income!) is to A) Be the CEO at the beginning of your career. B) Invest in the most stocks. C) Get an entry level position with a good education and work your way to the top. D) Never get into business but rather be a superstar musician or athlete. Show Answer Correct Answer: C) Get an entry level position with a good education and work your way to the top. 3. Products that can be physically seen and touched. A) Services. B) Economics. C) Goods. D) Economics. Show Answer Correct Answer: C) Goods. 4. Which of the following is NOT a major barrier to entry for a monopolist? A) Control over a key input. B) Patent protection. C) Economies of scale. D) Product differentiation. Show Answer Correct Answer: D) Product differentiation. 5. Economic problems arises due to A) Limited wants. B) Scare means. C) Alternative uses. D) Both B and C. Show Answer Correct Answer: D) Both B and C. 6. Which one of the following is a diseconomy of scale? A) An increase in productivity. B) An increase in bureaucracy. C) A decrease in the cost of research and development. D) A decrease in government regulation. Show Answer Correct Answer: B) An increase in bureaucracy. 7. The term "economies of scale" refers to ..... A) The average costs of production decreasing as a firm expands. B) The average costs of production rising as a firm expands. C) The average costs of production remaining the same as a firm expands. D) The average costs of production at first decreasing, then increasing, as a firm expands. Show Answer Correct Answer: A) The average costs of production decreasing as a firm expands. 8. The highest contribution to FDI in India in April 2017 if from ..... A) Singapore. B) USA. C) UK. D) Mauritius. Show Answer Correct Answer: D) Mauritius. 9. Suppose the flexibility of the demand for the price of the product C is equal to-0.7. If the price is reduced by 10%, how will the sales of C products? A) Trade C will increase by more than 10%. B) Trade C will increase by 10%. C) Trade C will be reduced by less than 10%. D) Products C will be reduced by 10%. Show Answer Correct Answer: C) Trade C will be reduced by less than 10%. 10. Which of these are only variable costs? A) -Rent, raw materials. B) Inputs, wages per hour. C) -Insurance, electricity. D) -Raw materials, loan payment. Show Answer Correct Answer: B) Inputs, wages per hour. 11. Medicine is a..... A) Necessity. B) Luxory. C) Utility. D) All of the above. Show Answer Correct Answer: A) Necessity. 12. The point of satiety is known as in law of diminishing marginal utility A) Maximum satisfaction. B) Minimum satisfaction. C) No satisfaction. D) All of the above. Show Answer Correct Answer: A) Maximum satisfaction. 13. Which of the financial statements below doesn't belong to the three main Financial Statements? A) Balance Sheet. B) Statement of Operations. C) Income Statement. D) Statement of Cashflows. Show Answer Correct Answer: B) Statement of Operations. 14. What is microeconomics A) The branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity. B) The branch of economics concerned with medium-scale economic factors, such as cryptocurrency. C) The part of economics concerned with single factors and the effects of individual decisions. D) The part of economics concerned with single factors and the effects of group decisions. Show Answer Correct Answer: C) The part of economics concerned with single factors and the effects of individual decisions. 15. As per ....., economics is being regarded as "an engine of social betterment" A) Wealth definition. B) Welfare definition. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Welfare definition. 16. A business' financial structure should be flexible:able to adapt to fluctuating financial circumstances. If we talk about qualitiative elasticity that means: A) The amount of available resources measured in relation to access to the capital markets. B) Enables the business to replace one type of capital for another. C) The sensitivity of the demand of capital to changes in interest rates. D) None of the above is correct. Show Answer Correct Answer: B) Enables the business to replace one type of capital for another. 17. Microeconomics is concerned with ..... A) The operation of the economy as a whole. B) How prices are determined in individual markets. C) Adjusting taxes and interest rates to manage the economy. D) The distribution of income and wealth in an economy. Show Answer Correct Answer: B) How prices are determined in individual markets. 18. The most prominent members of the Neo-classical school of economics is A) Adam Smith. B) Milton Friedman. C) Lucas. D) Alfred Marshall. Show Answer Correct Answer: D) Alfred Marshall. 19. It shows all combinations of inputs, which cost the same total amount. A) Isocost line. B) Utility. C) Total utility. D) Budget line. Show Answer Correct Answer: A) Isocost line. 20. A government's fiscal policies that are intended to encourage economic growth are known as ..... policies A) Appropriate. B) Complementary. C) Expansionary. D) Realistic. Show Answer Correct Answer: C) Expansionary. ← PreviousNext →Related QuizzesEconomics QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books