This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When inflation is high the ..... of the dollar decreases A) Cost value. B) Purchasing power. C) Importance. D) Validity. Show Answer Correct Answer: B) Purchasing power. 2. Resources such as buildings, equipment, and factories. A) Human Resources. B) Capital. C) Entrepreneurship. D) Natural Resources. Show Answer Correct Answer: B) Capital. 3. What is an exchange rate? A) The rate at which goods are exchanged between two countries. B) The price of one nation's currency in terms of another's. C) How many US dollars you can exchange for RMB at Travelex. D) The price of goods in terms of a foreign currency. Show Answer Correct Answer: B) The price of one nation's currency in terms of another's. 4. In Mixed economy, private sector- A) Are absolutely free to make any type of decisions. B) Works only for social objectives. C) Are regulated directly and / or indirectly by government. D) Does not exists at all. Show Answer Correct Answer: C) Are regulated directly and / or indirectly by government. 5. Applied economics includes A) Regression analysis and mathematical linear programming. B) Capital budgeting. C) Both (a) and (b). D) None. Show Answer Correct Answer: C) Both (a) and (b). 6. What is an example of a labour resource? A) Wheat. B) A builder. C) Cement. D) A truck. Show Answer Correct Answer: B) A builder. 7. The practice of examining the costs and the expected benefits of a choice as an aid to decision making. A) Cost-Benefit Analysis. B) Trade-off. C) Marginal Cost. D) Opportunity Cost. Show Answer Correct Answer: A) Cost-Benefit Analysis. 8. Which one of the following Indian industries has been hit hard by globalisation? A) Soft drinks. B) Automobiles. C) Electronics. D) Toy. Show Answer Correct Answer: D) Toy. 9. In long-run equilibrium in a monopolistically competitive market, firms typically: A) Earn a normal profit. B) Charge a price equal to marginal cost. C) Earn an above-normal profit. D) Charge a price equal to marginal revenue. Show Answer Correct Answer: A) Earn a normal profit. 10. Deal with the question of "what ought to be" . Involve opinions, judgement, assumption about what the economy should be or what policy should be used to achieve economic goals. A) Positive analysis. B) Normative analysis. Show Answer Correct Answer: B) Normative analysis. 11. The internal diseconomies is A) High salary of firm. B) High tax for industry. C) Low tax for industry. D) Labour and management disputes in firm. Show Answer Correct Answer: D) Labour and management disputes in firm. 12. Does increasing the money supply cause inflation or deflation? A) Inflation. B) Deflation. Show Answer Correct Answer: A) Inflation. 13. Which of the following statement is not correct? A) Business Economics refers to the integration of economic theory th business practice. B) Business Economics is not only valuable to business decision makers, but also useful for managers of 'not-for-profit' organisations. C) Theories of Economics provide the tools which explain various concepts such as demand, supply, costs, price, competition etc. D) Business Economics is concerned only with Micro Economics. Show Answer Correct Answer: D) Business Economics is concerned only with Micro Economics. 14. Doctors treats her mother is a economic activity. A) TRUE. B) FALSE. C) CANNOT SAY. D) None of above. Show Answer Correct Answer: B) FALSE. 15. Dr Mohan Kumar is working against the post of a senior doctor in a government hospital. He does not discriminate between the rich and poor while treating his patients medically. When he returns home from the hospital, he attends to the poor patients at home free of cost between 6:00 p.m. to 8:00 p.m. Besides, he gives them the information about the employment opportunities. 1. What type of activities does Dr Mohan Kumar perform at home? A) Economic. B) Non-Economic. C) Profession. D) Business. Show Answer Correct Answer: B) Non-Economic. 16. Which of the following is not correct? A) Micro and macro economics are complementary to each other. B) Every macro economic problem required micro economic analysis for its proper understanding. C) Micro economic behaviour can be added up to derive macro economic behaviour. D) What is macro from national angle is micro from world angle. Show Answer Correct Answer: C) Micro economic behaviour can be added up to derive macro economic behaviour. 17. ..... analyses cause and effect relationship but does not pass any value judgment. A) Positive or pure science. B) Normative science. C) None of the above. D) All of above. Show Answer Correct Answer: A) Positive or pure science. 18. ..... is the base of marketing planning A) Demand Estimation. B) Demand analysis. C) Demand function. D) Demand forecasting. Show Answer Correct Answer: D) Demand forecasting. 19. Monopolistically competitive firms are considered inefficient in allocating society's resources for which of the following reasons? A) In long-run equilibrium, the marginal benefit exceeds the price charged by the firms. B) In long-run equilibrium, the price is greater than the marginal cost. C) In long-run equilibrium, average total costs are minimized. D) In long-run equilibrium, the firm is earning economic profits. Show Answer Correct Answer: B) In long-run equilibrium, the price is greater than the marginal cost. 20. Packaging milk into smaller containers to meet the demand of people who live alone is an example of A) Form utility. B) Possession utility. C) Time utility. D) Place utility. Show Answer Correct Answer: A) Form utility. ← 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