This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following actions would the Federal Reserve System take to expand monetary policy A) Raise the Federal Discount Rate. B) Buy securities on the open market. C) Increase Reserve Requirements. D) Open additional financial institutions. Show Answer Correct Answer: B) Buy securities on the open market. 2. Let's say that the latest mobile phone demand line, F-Phone brand has the flexibility to the price equal to-2.0. The amount of demand for this mobile phone will increase by 10 percent.Show that the price of this mobile phone must A) Decreased equal to 5 percent. B) Reduced by more than 5 percent. C) Reduced less than 5 percent. D) Increased as 5 percent. Show Answer Correct Answer: A) Decreased equal to 5 percent. 3. ..... defined economics as a study of mankind in the ordinary business of life A) Adam smith. B) Lionel Robbins. C) Samuelson. D) Alfred marshall. Show Answer Correct Answer: D) Alfred marshall. 4. Profit earning is basic feature of A) Business. B) Profession. C) Employment. D) None. Show Answer Correct Answer: A) Business. 5. Which factor of production is the least mobile? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: D) Land. 6. Total utility starts decreasing when ..... A) Marginal utility is positive. B) Marginal utility becomes negative. C) Marginal utility becomes zero. D) None of above. Show Answer Correct Answer: B) Marginal utility becomes negative. 7. Law of variable proportion is also called ..... A) The law of increasing returns. B) The law of diminishing returns. C) The law of constant returns. D) Long run production function. Show Answer Correct Answer: B) The law of diminishing returns. 8. What does BRICS stand for? A) Brazil, Russia, Indonesia, China, South America. B) Brazil, Russia, India, China, South America. C) Brazil, Russia, India, China, South Africa. D) Brazil, Romania, India, China, South America. Show Answer Correct Answer: C) Brazil, Russia, India, China, South Africa. 9. The amount of a product that is produced is most directly affected by A) Labor unions. B) Product utility. C) Product value. D) Consumer demand. Show Answer Correct Answer: D) Consumer demand. 10. A ..... occurs when consumers are willing to buy different amounts of a product at every price. A) Supply. B) Elasticity. C) Change in demand. D) Shortage. E) Surplus. Show Answer Correct Answer: C) Change in demand. 11. Gross Domestic Product (GDP) refers to A) The total monetary value of a country based on goods and services produced. B) The total value of all goods and services that are required for the production process. C) The total value of all goods and services produced in a business in a given period of time. D) The total value of all goods and services produced in a country in a given period of time. Show Answer Correct Answer: D) The total value of all goods and services produced in a country in a given period of time. 12. What is the behaviour of TP, when MP becomes negative? A) TP increases at an increasing rate. B) TP increases at diminishing rate. C) TP is at its maximum point. D) TP decreases. Show Answer Correct Answer: D) TP decreases. 13. Which of the following is not a subject matter of Micro-economies? A) The price of mangoes. B) The cost of producing a fire truck for the fire department of Delhi, India. C) The quantity of mangoes produced for the mangoes market. D) The national economy's annual rate of growth. Show Answer Correct Answer: D) The national economy's annual rate of growth. 14. It represents what can be produced; also known as product indifference curve. A) ISOQUANT. B) Isocost curve. C) Isoquant-isocost model. D) Marginal product. Show Answer Correct Answer: A) ISOQUANT. 15. Sustained rise in prices is known as A) Deflation. B) Reflation. C) Inflation. D) Recession. Show Answer Correct Answer: D) Recession. 16. KFC was founded by ..... A) Harland Sanders. B) Ray Kroc. C) Glen Bell. D) Tony Tan Caktiong. Show Answer Correct Answer: A) Harland Sanders. 17. This utility is created when a product or service is available when it is needed or wanted by consumers: A) Time utility. B) Form utility. C) Place utility. D) Possession Utility. Show Answer Correct Answer: A) Time utility. 18. Turbulent environments are those with high complexity, high dynamism, and low uncertainty A) False. B) True. Show Answer Correct Answer: A) False. 19. Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk? A) Customer Value-Based Pricing. B) Competition-Based Pricing. C) Cost-Based Pricing. D) Dynamic Pricing. Show Answer Correct Answer: C) Cost-Based Pricing. 20. Which of the following strategies is involved with price skimming? A) Setting a limited number of prices for certain categories or products. B) Setting an initial low price to establish a new product in the market. C) Setting an initial low price to cover new product costs and still generate a profit. D) Setting an initial high price to establish a new product in the market. E) Setting an initial high price to cover new product costs and still generate a profit. Show Answer Correct Answer: E) Setting an initial high price to cover new product costs and still generate a profit. ← PreviousNext →Related QuizzesEconomics QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9Business Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books