This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 50 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Business that buys large quantity of goods from various producers, warehouses them and resells to retailers A) Social responsibility. B) Producer. C) Service. D) Wholesaler. Show Answer Correct Answer: D) Wholesaler. 2. What is the main motive of business A) Time pass. B) Profit. C) Spend surplus money. D) Entertainment. Show Answer Correct Answer: B) Profit. 3. Maddie wants to buy an IPod so she can listen to her favorite tunes. Her mom told her that she would need to pay for the IPod herself. Maddie gets a weekly allowance of $ 3.00. What is the best thing Maddie can do so that she can get what she wants as soon as she can? A) She needs to spend her allowance each week on the little things she wants. B) She needs to put her allowance in savings. C) She needs to do things to earn extra money like babysit, have a lemonade stand, and have a toy sale, as well as save her allowance. D) She should beg her mom for the IPod. Show Answer Correct Answer: C) She needs to do things to earn extra money like babysit, have a lemonade stand, and have a toy sale, as well as save her allowance. 4. Fixed cost per unit increases when A) Volume of production decreases. B) Volume of production increases. C) Variable cost per unit decreases. D) Variable cost remains constant. Show Answer Correct Answer: A) Volume of production decreases. 5. A system in which the society's leaders, usually members of the central government, make all economic decisions is called a(n) ..... A) Centrally planned economy. B) Socialist government. C) Communist government. D) Command economy. Show Answer Correct Answer: A) Centrally planned economy. 6. What type of factor of production is a road? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: A) Capital. 7. Bill of Rights A) The first 10 amendments to the American Constitution. B) A document issues by a judge that says exactly who and when will be searched. C) A formal change to the Constitution. D) None of above. Show Answer Correct Answer: A) The first 10 amendments to the American Constitution. 8. ..... means selling a security with an agreement to repurchase it at a future date. A) Commercial Papers. B) Repo Rate. C) Reverse Repo Rate. D) Certificate of Deposit. Show Answer Correct Answer: B) Repo Rate. 9. When changes in a product's price cause corresponding changes in consumer demand, the product has A) Elastic demand. B) Usefulness. C) Utility. D) Inelastic demand. Show Answer Correct Answer: A) Elastic demand. 10. Item bought for personal use A) Raw Good. B) Consumer Good. C) Industrial Good. D) Capital Good. Show Answer Correct Answer: B) Consumer Good. 11. Cardinal approach is related to: A) Indifference curve. B) Equi-marginal utility. C) Law of diminishing returns. D) None of these. Show Answer Correct Answer: B) Equi-marginal utility. 12. In the sum-of-the-year-digits method for depreciating assets they: A) Depreciate assets by an equal amount every year. B) Depreciate more during the first years than in the later years. C) Depreciate annually based on a decreasing weighting factor based on the economic life remaining. D) None of the answers above is correct. Show Answer Correct Answer: C) Depreciate annually based on a decreasing weighting factor based on the economic life remaining. 13. The sole national re-insurer for India is ..... A) Oriental Insurance. B) General Insurance Corporation. C) Star Heath Insurance. D) Life Insurance Corporation. Show Answer Correct Answer: B) General Insurance Corporation. 14. In the long run all firms are making A) Abnormal profit. B) Normal profit. C) Losses. D) None of above. Show Answer Correct Answer: B) Normal profit. 15. A brand new toy store opens across the street from an existing toy store. The new toy store has lower prices on some popular games. The existing toy store lowers the price of some games to match the new store prices. This is an example of: A) Competition. B) Specialization. C) Savings. D) Trade. Show Answer Correct Answer: A) Competition. 16. ..... is the extra cost of producing one more unit; ..... is found by adding fixed and variable costs. A) Marginal Cost; Total Cost. B) Extra Cost; Added Cost. C) Marginal Cost; Additional Cost. D) Total Cost; Gross Cost. Show Answer Correct Answer: A) Marginal Cost; Total Cost. 17. What is a mixed Economy A) There is no private sector. B) The free exchange of goods and services and private ownership of property. C) An economy where customs, traditions and believes prescribe the principles of economic organization for production of goods and services. D) An economy organized with some free market elements and some socialistic elements. Show Answer Correct Answer: D) An economy organized with some free market elements and some socialistic elements. 18. There are many fast food franchises that sell hamburgers. Each one has its own flagship hamburger product that distinguishes itself amongst the competition. A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Monopolistic competition. 19. The art of predicting demand for products or services at some future time A) Demand Analysis. B) Demand Forecasting. C) Quantitative method. D) Qualitative method. Show Answer Correct Answer: B) Demand Forecasting. 20. The government prints more money to pay its expenses is what type of inflation? A) Cost-push inflation. B) Demand-pull inflation. Show Answer Correct Answer: B) Demand-pull inflation. ← 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