This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 59 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Market ..... occurs where demand and supply ar A) Equilibrium. B) Utility. C) Elastic. D) None of these. Show Answer Correct Answer: A) Equilibrium. 2. The guiding principle of business economics is A) Profit maximization. B) Loss maximization. C) Profit minimization. D) Loss minimization. Show Answer Correct Answer: C) Profit minimization. 3. ..... refers to transfer of ownership of an industry from the public to private sector. A) Liberalization. B) Privatization. C) Globalization. D) None of these. Show Answer Correct Answer: B) Privatization. 4. Economic activity = ..... + ..... : A) Business + Profession. B) Profession + Employment. C) Business + Employment. D) Business + Profession + Employment. Show Answer Correct Answer: D) Business + Profession + Employment. 5. The Law of Supply says that when prices go up, supply does what? A) Goes up. B) Stays the same. C) Goes down. D) Goes away. Show Answer Correct Answer: A) Goes up. 6. Scarcity and choice because of A) Unlimited resources and limited human wants. B) Limited resources and unlimited human wants. C) Unlimited resources and unlimited human wants. D) Limited resources and limited human wants. Show Answer Correct Answer: B) Limited resources and unlimited human wants. 7. Price mechanism is the system in a ..... economy which brings about equality between demand and supply. A) Market. B) Socialist. C) Mixed. D) All of the above. Show Answer Correct Answer: A) Market. 8. Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $ 5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is A) Staying at home. B) Both the ice cream and the movie. C) Ice cream at Dairy Queen. D) The movie. Show Answer Correct Answer: C) Ice cream at Dairy Queen. 9. The kinked demand curve explains A) Price rigidity. B) Price flexibility. C) Demand rigidity. D) Demand flexibility. Show Answer Correct Answer: A) Price rigidity. 10. Diabetic medicine's have ..... demand A) Elastic. B) Inelastic. Show Answer Correct Answer: B) Inelastic. 11. Why does scarcity exist? A) Each year workers tend to produce less than previously. B) Machines wear out in time. C) There are not sufficient resources to meet everyone's wants. D) There is a limit to people's wants. Show Answer Correct Answer: C) There are not sufficient resources to meet everyone's wants. 12. Which of the following is a barrier to entry? A) Diseconomies of scale. B) High start-up costs. C) Low labour productivity. D) Inflation. Show Answer Correct Answer: B) High start-up costs. 13. Long-term production has only variable factors.What does it mean? A) Increasing production volumeCan only increase the amount of stable factors only. B) Unable to increase the amount of productivity. C) Increasing the amount of productivityCan be done byIncrease the amount of all kinds of production factors. D) Long-term production uses factorsLess production than short-term. Show Answer Correct Answer: C) Increasing the amount of productivityCan be done byIncrease the amount of all kinds of production factors. 14. Companies with an existing distribution network are at a disadvantage in the global context. A) True. B) False. Show Answer Correct Answer: B) False. 15. A ..... is a market situation where there is only one producer who controls the supply of a good or service. A) Oligopoly. B) Monopoly. C) GDP. D) Competition. Show Answer Correct Answer: B) Monopoly. 16. When customers buy the exact amount of goods that producers are selling at a specific price, the ..... price exists. A) Unit. B) Market. C) Equilibrium. D) Production. Show Answer Correct Answer: C) Equilibrium. 17. In a competitive economy the uncrowned king is A) Government. B) Producer. C) Consumer. D) Seller. Show Answer Correct Answer: C) Consumer. 18. Who gave the scarcity definition of economics A) Lionel Robbins. B) Karl Marx. C) Alfred Marshall. D) Aristotle. Show Answer Correct Answer: A) Lionel Robbins. 19. Tariffs and quotas adopted under industrial policy was to ..... A) Increase export. B) Make exported goods cheaper. C) Increase foreign competition. D) Restrict imports and protect domestic firms from foreign competition. Show Answer Correct Answer: D) Restrict imports and protect domestic firms from foreign competition. 20. Unitary inelastic demand is ..... A) E p = 0. B) E p > 1. C) E p <1. D) E p = 1. Show Answer Correct Answer: D) E p = 1. ← 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