Business Economics Quiz 45 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. In the long run, in monopolistic competition, the producers will produce at a level of output .....

Correct Answer: C) Where MC=MR.

2. Under inductive method logic proceeds from:

Correct Answer: D) Particular to general.

3. Speculative demand for money is dependent on

Correct Answer: B) Rate of interest.

4. A small island in the pacific has one business that sells diving equpiment.

Correct Answer: A) Monopoly.

5. Which of the following is a possible cause of diseconomies of scale?

Correct Answer: C) Greater distance between senior staff and shop floor workers.

6. Having each worker focus on a particular facet of production is called .....

Correct Answer: C) Specialization.

7. Consider the following and decide, which economy (if any) is without scarcity

Correct Answer: D) None of the above.

8. Which of the following is the right equation for law of demand?

Correct Answer: D) D=a-bP.

9. Which of the following definitions of economics includes the economic concept of ' scale of preferences'?

Correct Answer: C) Scarcity definition.

10. A nation's transportation, communication, and utility systems.

Correct Answer: A) Infrastructure.

11. Which of the following is the cause of central economic problem?

Correct Answer: D) All of the above.

12. Under the cross elasticity of demand between two substitutes product

Correct Answer: B) If the price of one product decreases, the demand for the other product will decreases.

13. Indian banking sector consists of ..... public sector banks.

Correct Answer: C) 27.

14. The flexibility of demand for priceWill always be negativeDue to the change of price and purchase demandWhat are the following characteristics?

Correct Answer: D) In the opposite direction.

15. Rapid integration and connection between countries is known as

Correct Answer: C) Globalisation.

16. In case a factory has idle capacity, the company can use following analysis to accept or reject an order

Correct Answer: B) Incremental Analysis.

17. The term production in economics means-

Correct Answer: A) Creation of economic utilities.

18. Which one in the following is not correct:

Correct Answer: A) There are limited wants.

19. From the supply side, an industrial sector is made up of all the companies that cover similar needs .....

Correct Answer: A) True.

20. Which of the following is related to the problem 'how to produce'?

Correct Answer: B) The choice of technique.