This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a resource as the term is used by economists? A) Money. B) Land. C) Buildings. D) Labour. Show Answer Correct Answer: A) Money. 2. Economic growth can be measured by A) The CPI. B) The CBI. C) GDP. D) MPC. Show Answer Correct Answer: C) GDP. 3. Constitution A) A plan of government. B) A lawmaking branch of government. C) A right given by God. D) None of above. Show Answer Correct Answer: A) A plan of government. 4. If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then the firm is a A) Monopolist. B) Oligopolist. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 5. Consumer sovereignty is which of the following characteristics? A) Capitalist economy. B) Mixed economy. C) Socialist economy. D) Democracy. Show Answer Correct Answer: A) Capitalist economy. 6. An asset is defined as any economic resource expected to benefit a firm or an individual who owns it. A) True. B) False. Show Answer Correct Answer: A) True. 7. Giving up one activity to do another is an example of an ..... A) Resource. B) Competition. C) Opportunity cost. D) Productivity. Show Answer Correct Answer: C) Opportunity cost. 8. The market for automobiles is an oligopoly A) True. B) False. Show Answer Correct Answer: A) True. 9. ..... refers to the process of selecting an appropriate alternative that will provide the most efficient means of attaining a desired end, from two or more alternative courses of action A) Problem solving. B) Problem analyzing. C) Managerial expertise. D) Decision making. Show Answer Correct Answer: D) Decision making. 10. Which of the following is not covered under business decisions? A) Allocative decision. B) Distributive decision. C) Productive decision. D) None of the above. Show Answer Correct Answer: D) None of the above. 11. Consumer surplus is ..... A) Potential price-actual price. B) MVN = TVN-TVN-1. C) Demand=supply. D) None. Show Answer Correct Answer: A) Potential price-actual price. 12. Cost of demand creation on the nike balance sheet included ..... A) Depreciation. B) Rent. C) Endorsement contracts. D) Inventory costs. Show Answer Correct Answer: C) Endorsement contracts. 13. What is managerial economics? A) Only economics. B) Only management. C) Amalgamation of both. D) None of these. Show Answer Correct Answer: C) Amalgamation of both. 14. Economics is "On the one side, a study of wealth; and on the other, and more important side, part of a study of man" . This is stated by A) Adam Smith. B) Alfred Marshall. C) Robbins. D) Samuelson. Show Answer Correct Answer: B) Alfred Marshall. 15. Macro Economics deals with A) External value of money. B) Employment and economic growth. C) General price level. D) All of above. Show Answer Correct Answer: D) All of above. 16. Profit motive is a merit of ..... A) Socialism. B) Capitalism. C) Mixed Economy. D) None of the above. Show Answer Correct Answer: B) Capitalism. 17. Bookkeeping is a comprehensive system for collecting, analyzing, and communicating financial information. A) True. B) False. Show Answer Correct Answer: B) False. 18. When marginal utility from the consumption of a commodity is zero, then the: A) Total utility is zero. B) Total utility is highest. C) Total utility is rising. D) Total utility is falling. Show Answer Correct Answer: B) Total utility is highest. 19. State which of the following statement is not true. A) If the recourses were unlimited, people would be able to satisfy their wants. B) If recourse has only single use, then also economic problem would not arise. C) All countries, without exception, face problem of scarcity. D) Developed countries do not face Central Economic Problems. Show Answer Correct Answer: D) Developed countries do not face Central Economic Problems. 20. The interference of the government is very limited in A) Socialist economy. B) Capitalist economy. C) Mixed economy. D) All the above. Show Answer Correct Answer: B) Capitalist economy. ← PreviousNext →Related QuizzesEconomics QuizzesBusiness Economics Quiz 1Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9Business Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books