This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 30 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is economic activity? A) An individual who buys goods and services from businesses. B) The money businesses get to keep after paying off expenses. C) The contest between businesses to win over consumers. D) The activity of producing and selling of goods or services and making them available to all consumers. Show Answer Correct Answer: D) The activity of producing and selling of goods or services and making them available to all consumers. 2. The difference between a country's exports and imports. A) Balance of trade. B) Foreign debt. C) Opportunity cost. D) Comparative advantage. Show Answer Correct Answer: A) Balance of trade. 3. Each stage in the supply chain adds value for the final customer. A) True. B) False. Show Answer Correct Answer: A) True. 4. In a mixed economy A) All economic decisions are taken by the central authority. B) All economic decisions are taken by private entrepreneurs. C) Economic decisions are partly taken by the state and partly by the private entrepreneurs. D) None of the above. Show Answer Correct Answer: C) Economic decisions are partly taken by the state and partly by the private entrepreneurs. 5. What is the profit maximizing condition? A) MR = D. B) MR = MC. C) MCDONALD'S. D) D = Profits. Show Answer Correct Answer: B) MR = MC. 6. What is the aim of contractionary monetary policy? A) Stimulate the economy. B) Encourage people to buy more, increasing inflation. C) Lower demand and reduce inflation. D) Raise employment levels. Show Answer Correct Answer: C) Lower demand and reduce inflation. 7. Which of the following is not within the scope of Business Economics? A) Capital Budgeting. B) Risk Analysis. C) Business Cycles. D) Accounting Standards. Show Answer Correct Answer: D) Accounting Standards. 8. Services are more tangible, more customized, and more storable than most products. A) True. B) False. Show Answer Correct Answer: B) False. 9. A need is something people can live without. A) False. B) True. Show Answer Correct Answer: A) False. 10. The third step in the decision making process is A) Define the problem. B) Evaluate the alternatives. C) Identify the alternatives. D) Make a choice. Show Answer Correct Answer: B) Evaluate the alternatives. 11. .... Ram:My corn harvest this year is poor.Krishan:Don't worry. Price increases will compensate for the fall in quantity supplied. Vinod:Climate affects crop yields. Some years are bad, others are good.Madhu:The Government ought to guarantee that our income will not fall.In this conversation, the normative statement is made by A) RAM. B) KRISHAN. C) MADHU. D) VINOD. Show Answer Correct Answer: C) MADHU. 12. Name the occupation in which people work for others and get remunerated in return A) Business. B) Profession. C) Employment. D) None of the above. Show Answer Correct Answer: C) Employment. 13. What are the four main parts of the circular flow diagram? A) Product Market, Stock Market, Factor Market, Fish Market. B) Product Market, House Market, Factor Market, Good Market. C) Factor Market, Product Market, Households, Firms. D) Factor Market, households, Stock Market, super market. Show Answer Correct Answer: C) Factor Market, Product Market, Households, Firms. 14. What of the following is a feature of a monopoly? A) There is plenty of competition. B) Price is set freely by the consumers. C) The product sold is unique. D) There are very few barriers to entry. Show Answer Correct Answer: C) The product sold is unique. 15. According to the law of supply, supply of a commodity is dependent on A) Price. B) Demand. C) Cost. D) Other factors. Show Answer Correct Answer: A) Price. 16. Which among the following are the steps of demand forecasting? A) Setting objectives. B) Setting time period. C) Estimating results. D) All of these. Show Answer Correct Answer: D) All of these. 17. Opportunity Cost is best defined as A) The best rejected alternative you give up when making a decision. B) The price you pay to purchase something. C) The benefit you gain by making a decision. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: A) The best rejected alternative you give up when making a decision. 18. What are the outlay costs? A) Fuel payment or electricity bills. B) The cost made for certain product. C) Costs that are non traceable. D) The cost that combines profit and loss. Show Answer Correct Answer: A) Fuel payment or electricity bills. 19. When supply of a commodity decreases on a fall in its price, its is called A) Expansion of supply. B) Increase in supply. C) Contraction of supply. D) Decrease in supply. Show Answer Correct Answer: C) Contraction of supply. 20. Perfect market has A) Homogeneous product. B) Heterogeneous goods. C) Special goods. D) Only industrial goods. Show Answer Correct Answer: A) Homogeneous product. ← 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