Business Economics Quiz 5 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Capital intensive technique would get chosen in a

Correct Answer: B) Capital surplus economy where the relative price of capital is lower.

2. Which of these is a disadvantage of monopoly from a consumers perspective

Correct Answer: B) Less choice.

3. Forward planning goes hand in hand with

Correct Answer: A) Decision making.

4. The income elasticity of demand is negative for a

Correct Answer: D) Inferior good.

5. Human activities directed towards acquisition of wealth are called economic activities.

Correct Answer: A) TRUE.

6. The combination of unlimited needs and wants with limited resources results in:

Correct Answer: C) Scarcity.

7. Which of the following is true of a monopolistically competitive firm in long-run equilibrium?

Correct Answer: B) Price equals average total cost but is greater than marginal cost.

8. Business is exchange of

Correct Answer: C) Goods and services to money.

9. Which of these jobs is involved in production?

Correct Answer: B) Factory worker.

10. Since micro economics splits up the entire economy into smaller parts for the purpose of intensive study, it is also known as

Correct Answer: A) Slicing method.

11. Which type of economy has the government making all decisions?

Correct Answer: D) Command.

12. ..... is a loan taken by the government from its own people as well as from foreign countries.

Correct Answer: A) Public debt.

13. A business which is a separate legal entity, who's management is usually separate from its owners, is which business structure?

Correct Answer: C) Company/Corporation.

14. Which factors in the followingUsed to consider whether the production is a short or long-term production.

Correct Answer: B) Production factors.

15. Micro and macro economics are ..... of economics.

Correct Answer: B) Scope.

16. Which of the following is not a central economic problem?

Correct Answer: B) When to produce?.

17. The central problem of any economy arises because

Correct Answer: D) Both 1 and 2.

18. If variable cost is £10 per unit and fixed costs are £400, 000, what is the total cost of producing 50, 000 units?

Correct Answer: A) £900, 000.

19. Which one is not a property of isoquant

Correct Answer: D) Positive slope.

20. An increase in the average prices of goods and services in a country.

Correct Answer: B) Inflation.