This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Nowadays, consumers are becoming more interested in health.How will it affect the demand of green tea, which is a healthy food? A) The demand line does not change. B) Demand line slides to the right of the original line. C) Demand lines are scrolled to the left of the original line. D) The amount of demand decreased. Show Answer Correct Answer: B) Demand line slides to the right of the original line. 2. A buyer's willingness and ability to pay a price for a specific quantity of a good or service. A) Demand. B) Supply. C) Market. D) Inflation. Show Answer Correct Answer: A) Demand. 3. Which of the following best describes the relationship between trade offs and opportunity cost? A) Opportunity costs happen because of trade offs. B) Opportunity costs are the opposite of trade offs. C) Trade offs lower the opportunity cost of an economic decision. D) Trade offs occur when there are no opportunity costs. Show Answer Correct Answer: A) Opportunity costs happen because of trade offs. 4. "At the higher price levelThe price of demand for priceWill be higherThe price of demand for priceAt the price level that is always lower. "The following text is correct or wrong. A) True. B) False. Show Answer Correct Answer: A) True. 5. Father of Economics A) Marshall. B) Smith. C) Schumpeter. D) Keynes . Show Answer Correct Answer: B) Smith. 6. Which is the characteristics of an underdeveloped economy? A) General poverty. B) Significance of industrial sector. C) Low growth of population. D) Use of higher production techniques and skills. Show Answer Correct Answer: A) General poverty. 7. The first order derivative of total cost is ..... ? A) Average cost. B) Average variable cost. C) Average fixed cost. D) Marginal cost. Show Answer Correct Answer: D) Marginal cost. 8. Which of the following does not characterise business activity? A) Production of goods. B) Presence of risk. C) Sale or exchange. D) Salary or wages. Show Answer Correct Answer: D) Salary or wages. 9. Rashtriya Madhyamic Shiksha Abhiyan was to improve access to A) Elementary Education. B) Secondary Education. C) Tertiary Education. D) All of the above. Show Answer Correct Answer: C) Tertiary Education. 10. A business is a person or group of people who sell a good or service. A) True. B) False. Show Answer Correct Answer: A) True. 11. Most countries try to maintain an inflation rate of ..... per year. A) One percent or less. B) Two to three percent. C) Four to five percent. D) Six to seven percent. Show Answer Correct Answer: B) Two to three percent. 12. What happens when there is too much money and too few goods/products? A) Prices go lower?. B) Recession. C) Economics. D) Inflation. Show Answer Correct Answer: D) Inflation. 13. If the supply decreases and the demand increases then the price will ..... A) Decrease. B) Increase. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Increase. 14. What is a land product A) Diamonds. B) Tractor. C) Car. D) Surfboard. Show Answer Correct Answer: A) Diamonds. 15. Which is not a likely disadvantage of a small firm? A) Higher costs. B) Difficulty attracting quality staff. C) Vulnerability to competition (especially from larger companies). D) Lower overall wage costs. Show Answer Correct Answer: D) Lower overall wage costs. 16. If actual reward is greater than value of risk then the company will face A) Loss. B) Profit. C) No loss no profit. D) Shut down. Show Answer Correct Answer: B) Profit. 17. In a market economy all assets are held by: A) Investors. B) Privately. C) Government. D) Jointly by government. Show Answer Correct Answer: B) Privately. 18. . Market which has two firms is known as A) Oligopoly. B) Monopoly. C) Duopoly. D) Perfect competition. Show Answer Correct Answer: C) Duopoly. 19. Which of the following is not a phase in the law of variable proportions A) Increasing returns. B) Constant returns. C) Diminishing returns. D) Negative returns. Show Answer Correct Answer: B) Constant returns. 20. When an individual's income falls (while everything else remains the same), his demand for an inferior good: A) Increases. B) Decrease. C) Remains unchanged. D) Negative. Show Answer Correct Answer: B) Decrease. ← 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