This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The process by which resources are transformed into useful forms is A) Capitalization. B) Consumption. C) Allocation. D) Production. Show Answer Correct Answer: D) Production. 2. Value maximization theory fails to address the problem of A) Uncertainty. B) Sluggish growth. C) Self serving management. D) Risk. Show Answer Correct Answer: C) Self serving management. 3. Which of the following involves Business decision making? A) Continue or shut down decision. B) Launching of new product. C) Proper debt and equity mix. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Country with little economic wealth and an emphasis on agriculture or mining. A) Less-developed country. B) Developing country. C) Industrialized country. D) None of above. Show Answer Correct Answer: A) Less-developed country. 5. Which business structure allows one business to operate under the trading name of another company's established brand and sell its products and/or services? A) Partnership. B) Company/Corporation. C) Franchise tagsBusiness Structures. D) Sole trader. Show Answer Correct Answer: C) Franchise tagsBusiness Structures. 6. Scarcity can best bedefined as A) A Shortage of a product. B) Where demand is greater than supply. C) Unlimited wants vs Limited resources. D) Limited wants vs unlimited resources. Show Answer Correct Answer: C) Unlimited wants vs Limited resources. 7. Marginal cost is..... cost. A) Semi-Variable. B) Fixed. C) Stepped. D) Variable. Show Answer Correct Answer: D) Variable. 8. Average revenue is equal to A) Price. B) Quantity. C) Total revenue. D) Marginal revenue. Show Answer Correct Answer: A) Price. 9. A study of have increase in the corporate tax rate will affect national unemployment rate is A) Normative economics. B) Macroeconomics. C) Descriptive economics. D) Microeconomics. Show Answer Correct Answer: B) Macroeconomics. 10. ..... represents the tabular form of quantity demanded of a particular product during a given period of time. A) Law of demand. B) Demand Curve. C) Demand schedule. D) Cross demand. Show Answer Correct Answer: C) Demand schedule. 11. Marshall defines economics as A) The study of mankind in the ordinary business of life. B) The study of human behaviour as a relationship between ends and scarce resources. C) An Enquiry into the Nature and Causes of wealth of Nations. D) None of these. Show Answer Correct Answer: A) The study of mankind in the ordinary business of life. 12. When supply decreases, demand remaining constant, A) Demand falls. B) Supply increases. C) Price falls. D) Price rises. Show Answer Correct Answer: D) Price rises. 13. Subject matter of macro-economics is the theory of economic ..... A) Of production. B) Saving of person. C) Growth and development. D) None of above. Show Answer Correct Answer: C) Growth and development. 14. "MNCs keep in mind certain factors before setting up production" . Identify the incorrect option from the choices given below A) Availability of cheap skilled and unskilled labour. B) Proximity to markets. C) Presence of a large number of local competitors. D) Favourable government policies. Show Answer Correct Answer: C) Presence of a large number of local competitors. 15. Which one of the following is an argument for free trade? A) Protects domestic industries. B) Promotes self sufficiency. C) Helps diversification of industries. D) Promotes efficient allocation of world resources. Show Answer Correct Answer: D) Promotes efficient allocation of world resources. 16. . When the output produced is maximum for the given level of input the firms achieve A) Maximum profit. B) Technical efficiency. C) Economic efficiency. D) None of these. Show Answer Correct Answer: C) Economic efficiency. 17. Basic assumptions of law of demand include A) Prices of other goods should change. B) There should be substitute for the commodity. C) The commodity should not confer any distinction. D) The demand for the commodity should not be continuous. Show Answer Correct Answer: C) The commodity should not confer any distinction. 18. A well-located drive-through window adds value to a bank's services by providing: A) Place utility. B) Information utility. C) Possession utility. D) Form utility. Show Answer Correct Answer: A) Place utility. 19. Which of the following is not a resource as the term is used by economists? A) Money. B) Land. C) Buildings. D) Labour. Show Answer Correct Answer: A) Money. 20. Economic growth can be measured by A) MPC. B) GDP. C) The CPI. D) The CBI. Show Answer Correct Answer: B) GDP. 21. If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then the firm is a A) Monopolistic competition. B) Monopolist. C) Perfect competition. D) Oligopolist. Show Answer Correct Answer: C) Perfect competition. 22. Consumer sovereignty is which of the following characteristics? A) Capitalist economy. B) Mixed economy. C) Socialist economy. D) Democracy. Show Answer Correct Answer: A) Capitalist economy. 23. An asset is defined as any economic resource expected to benefit a firm or an individual who owns it. A) False. B) True. Show Answer Correct Answer: B) True. 24. Giving up one activity to do another is an example of an ..... A) Resource. B) Competition. C) Opportunity cost. D) Productivity. Show Answer Correct Answer: C) Opportunity cost. 25. The market for automobiles is an oligopoly A) True. B) False. Show Answer Correct Answer: A) True. 26. ..... refers to the process of selecting an appropriate alternative that will provide the most efficient means of attaining a desired end, from two or more alternative courses of action A) Decision making. B) Problem analyzing. C) Problem solving. D) Managerial expertise. Show Answer Correct Answer: A) Decision making. 27. Which of the following is not covered under business decisions? A) Allocative decision. B) Distributive decision. C) Productive decision. D) None of the above. Show Answer Correct Answer: D) None of the above. 28. Consumer surplus is ..... A) Potential price-actual price. B) MVN = TVN-TVN-1. C) Demand=supply. D) None. Show Answer Correct Answer: A) Potential price-actual price. 29. Cost of demand creation on the nike balance sheet included ..... A) Depreciation. B) Rent. C) Endorsement contracts. D) Inventory costs. Show Answer Correct Answer: C) Endorsement contracts. 30. What is managerial economics? A) Only economics. B) Only management. C) Amalgamation of both. D) None of these. Show Answer Correct Answer: C) Amalgamation of both. Next →Related QuizzesEconomics QuizzesFinance QuizzesBusiness 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