Business Economics Quiz 36 (20 MCQs)

Quiz Instructions

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1. Which of the following could attract new firm to join an industry?

Correct Answer: C) Economic profits.

2. A trade in which the parties involved anticipate that the benefits will outweigh the cost is called .....

Correct Answer: B) Voluntary exchange.

3. The four sectors in the economy are .....

Correct Answer: A) The household sector, financial sector, business sector & government sector.

4. Freedom of choice is the advantage of

Correct Answer: B) Capitalism.

5. GDP, or gross domestic product, measures .....

Correct Answer: A) The value of all final goods and services produced.

6. Which of the following is NOT a key feature of Market Economies?

Correct Answer: B) Trade Regulation.

7. A Firm's profitability depends much on its ..... of production.

Correct Answer: C) Cost.

8. A person who uses raw materials to create something new

Correct Answer: A) Builder.

9. When production increases average total cost tends to do what?

Correct Answer: D) Decreases then increases.

10. What kind of cost is the following?That will continuously decrease when the production volume increases

Correct Answer: D) Average fixed cost.

11. Relationship between the amount of a resource that is available and the price.

Correct Answer: B) Supply.

12. The money left over after all business costs are subtracted

Correct Answer: C) Net profit.

13. Because of scarcity, people are forced to make ..... about how to use resources.

Correct Answer: A) Choices.

14. Which of the following Is a type of economic activities?

Correct Answer: D) All of these.

15. If the total cost is US$ 35, 000, 000 and output is 100, 000 units, what is the average cost?

Correct Answer: C) US$ 350.

16. Which of the following is not a category of a ratio?

Correct Answer: A) Return on assets.

17. Which of the following is not one of the four central questions that the study of economics is supposed to answer?

Correct Answer: B) When are goods produced?.

18. A situation where there is only one buyer

Correct Answer: C) Monopsons.

19. Market Economy is on the basis of

Correct Answer: B) Supply and Demand forces in the market.

20. The term group equalibrium is related to

Correct Answer: A) Monopolistic competition.