This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 53 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Economic Company LimitedManufacture of products with an average cost of 400 baht, an average income of 300 baht and the average variable cost of 150 baht. Which company is in the following situation? A) Have normal profits. B) Loss but continue to produce. C) Loss and need to close the business. D) At the closing point of the business. Show Answer Correct Answer: B) Loss but continue to produce. 2. What is an Economy? A) It is the study of how people choose to use resources. B) Land, labor, and capital. C) The wealth and resources of a country or region. D) A market-based economic system. Show Answer Correct Answer: C) The wealth and resources of a country or region. 3. A service is..... A) Are the products offered by businesses. B) Are companies that offer business to consumers. C) Are physical, tangible items that can be seen and touched. D) The actions that are done by businesses for consumers. Show Answer Correct Answer: D) The actions that are done by businesses for consumers. 4. Which of the following pricing strategies best describes price lining? A) Setting individually negotiated prices for all categories of products. B) Setting an initial high price to cover new product costs and generate a profit. C) Setting a limited number of prices for certain categories of products. D) Setting an initial low price to establish a new product in the market. Show Answer Correct Answer: C) Setting a limited number of prices for certain categories of products. 5. Which of the following is an example of a need? A) Entertainment. B) Somewhere to live. C) Transport. D) Packaged holiday. Show Answer Correct Answer: B) Somewhere to live. 6. Odd-even pricing falls under the category of which of the following? A) Price skimming. B) Price lining. C) Price fixing. D) Psychological pricing. E) Market pricing. Show Answer Correct Answer: D) Psychological pricing. 7. The distinction between variable cost and fixed cost is relevant only in A) Long period. B) Short period. C) Medium term. D) Mixed period. Show Answer Correct Answer: B) Short period. 8. Which of the following terms refers to the amount paid for an existing business beyond the value of its other assets? A) Liability deduction. B) Goodwill. C) Excess compensation. D) Licensing. Show Answer Correct Answer: B) Goodwill. 9. Who gave welfare definition of economics A) Aristotle. B) Alfred Marshall. C) Lionel Robbins. D) Paul samuelson. Show Answer Correct Answer: B) Alfred Marshall. 10. What does the scarcity of resource implies ..... A) We must develop way to decrease our individual wants. B) Not all wants can be satisfied. C) Resources can not satisfy any want. D) Resources are very scarce and shall not be used at all. Show Answer Correct Answer: B) Not all wants can be satisfied. 11. Define-interest rates are defined as the A) Price of loans. B) Price of money. C) Rate charged on investment costs. D) The opportunity cost of not saving. Show Answer Correct Answer: B) Price of money. 12. .... refers to the quantity of a good or service that producers are willing and able to sell during a certain period under a given set of conditions A) Supply. B) Demand. C) Price. D) Production change. Show Answer Correct Answer: A) Supply. 13. ..... is the benefit or satisfaction gained from the use of a good or service. A) Utility. B) Incentives. C) Income. D) Cost-Benefit Analysis. Show Answer Correct Answer: A) Utility. 14. At what point does total utility starts diminishing? A) When marginal utility is positive. B) When it remains constant. C) When marginal utility is increasing. D) When marginal utility is negative. Show Answer Correct Answer: D) When marginal utility is negative. 15. Pigou was an ardent supporter of A) Wealth definition. B) Welfare definition. C) Scarcity definition. D) Growth definition. Show Answer Correct Answer: B) Welfare definition. 16. Economics is a study of mankind in a ordinary business of life-it's the statement of A) Adam smith. B) Lionel robbins. C) Alfred marshall. D) Samuelson. Show Answer Correct Answer: C) Alfred marshall. 17. When production increases fixed costs does what? A) Increases. B) Decreases. C) Remains the same. D) Diminishes. Show Answer Correct Answer: C) Remains the same. 18. Of the four factors of production, which of these are not a factor of production? A) Land. B) Capital. C) Development. D) Labour. Show Answer Correct Answer: C) Development. 19. Selling cost have to be incurred in case of A) Perfect competition. B) Imperfect competition. C) Monopolistic competition. D) None. Show Answer Correct Answer: B) Imperfect competition. 20. Which of the following is not the feature of capitalist economy: A) Right to private property. B) Freedom of economic choice. C) Collective ownership. D) Consumer Sovereignty. Show Answer Correct Answer: C) Collective ownership. ← 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