This quiz works best with JavaScript enabled. Home > Economics > Business Economics > Business Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ratio calculated as net income divided by revenue, or net profits divided by sales is known as A) Revenue. B) Profit margin. C) Gross profit. D) Margin analysis. Show Answer Correct Answer: B) Profit margin. 2. Unitary elasticity of demand is: A) Zero. B) Equal to one. C) Greater than 1. D) Less than 1. Show Answer Correct Answer: B) Equal to one. 3. Which of the following is NOT considered non-price competition? A) Location. B) Black Friday Sale. C) Physical Characteristics. D) Advertising. Show Answer Correct Answer: B) Black Friday Sale. 4. Supply represents ..... A) How much of a product or service the market has to offer. B) How much of a product that the customer wants to buy. C) How many goods are available for purchase. D) How much of a product or service that buyers want to sell. Show Answer Correct Answer: A) How much of a product or service the market has to offer. 5. In a freemium type business ..... A) A monthly fee is paid in order to use the service. B) Consumers are asked to donate what they can to use the service. C) Consumers can use the basics for free. D) You get all of the features for free. Show Answer Correct Answer: C) Consumers can use the basics for free. 6. Which is not an advantage of a small firm? A) Better communication. B) Flexibility. C) Economies of scale. D) A personal service can be offered. Show Answer Correct Answer: C) Economies of scale. 7. Ricardian comparative cost theory can be extended or applied to A) More than two commodities. B) Only two countries. C) Only to developed countries. D) Intra-regional. Show Answer Correct Answer: A) More than two commodities. 8. The concept of equilibrium is always explained with reference to prices A) True. B) False. Show Answer Correct Answer: B) False. 9. Which of the items below doesn't belong on the profit & loss statement? A) Depreciation. B) Cost of Goods Sold. C) Personnel expenses. D) Principal Payment. Show Answer Correct Answer: D) Principal Payment. 10. The price elasticity of demand measures ..... A) . The slope of a budget curve. B) How often the price of a good changes. C) The responsiveness of the quantity demanded to changes in price. D) How sensitive the quantity demanded is to changes in demand. Show Answer Correct Answer: C) The responsiveness of the quantity demanded to changes in price. 11. Which one of the following is a factor of production? A) Land. B) Profit. C) Wages. D) Manufacturing. Show Answer Correct Answer: A) Land. 12. Which of the following might cause supply of a good to decrease: A) Advertising. B) Sales skills. C) Inelastic demand. D) Government regulations. Show Answer Correct Answer: D) Government regulations. 13. A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of A) Macro-Economics. B) Descriptive Economics. C) Micro-economics. D) Normative economics. Show Answer Correct Answer: A) Macro-Economics. 14. Which of the following is a reason why some firms remain small? A) Lack of unskilled labour. B) Lack of finance. C) High tariffs on exports. D) Low interest rates. Show Answer Correct Answer: B) Lack of finance. 15. If the manufacturer predicts that their own prices will be reduced in the future.What will happen? A) Reduce current production. B) Increase the current production volume. C) Reduce the production volume in the future. D) The production volume does not change both the present and the future. Show Answer Correct Answer: B) Increase the current production volume. 16. A firm's supply curve is on an upward slope because ..... A) The production costs of additional units of output will rise beyond a point. B) Consumers see a positive relationship between price and quality. C) Expansion of production leads to the use of inferior inputs. D) A reduction in the price of the raw material for that product. Show Answer Correct Answer: A) The production costs of additional units of output will rise beyond a point. 17. Production refers to ..... A) Destruction of utilities. B) Exchange value. C) Creation of utilities. D) Labour. Show Answer Correct Answer: C) Creation of utilities. 18. Ricardian theory assumes perfect mobility of Labour A) Within the country. B) Between the countries. C) Both within and between the countries. D) Between states. Show Answer Correct Answer: A) Within the country. 19. A market dominated by a few large firms is called: A) Oligopoly. B) Labour Market. C) Monopoly. D) Government intervention. Show Answer Correct Answer: A) Oligopoly. 20. When the quantity demanded is greater than the quantity supplied it is known as A) Equilibrium. B) A shortage. C) A surplus. D) An opportunity cost. Show Answer Correct Answer: B) A shortage. ← PreviousNext →Related QuizzesEconomics QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 8Business Economics Quiz 9Business Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books