This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The amount a firm receives for the sale of its output. P x Q = ..... A) Total Revenue. B) Marginal Revenue. C) Average Profit. D) Profit. Show Answer Correct Answer: A) Total Revenue. 2. The Central Economic problem is that of- A) Allocating the scarce recourse in such a manner that society's unlimited wants are satisfied as far as possible. B) Giving jobs to poor and backward. C) Guaranteeing that the production occurs in most efficient manner. D) All of above. Show Answer Correct Answer: A) Allocating the scarce recourse in such a manner that society's unlimited wants are satisfied as far as possible. 3. Which sector received the highest FDI inflow in April-Dec. 2017? A) Finance. B) Consumption. C) Banking. D) Telecommunication. Show Answer Correct Answer: D) Telecommunication. 4. A plan for spending money is called a ..... A) Opportunity cost. B) Banking. C) Savings account. D) Budget. Show Answer Correct Answer: D) Budget. 5. Cost of raw materials is an e.g of A) Fixed cost. B) Variable cost. C) None. D) None of above. Show Answer Correct Answer: B) Variable cost. 6. C + DD + OD is called ..... money supply. A) Mh. B) M1. C) What. D) With. Show Answer Correct Answer: B) M1. 7. What is the scope of Business Economics? A) It covers operational issues within the organization. B) It covers environmental issues outside the organization. C) It covers both operational and environmental issues. D) It covers neither operational nor environmental issues. Show Answer Correct Answer: C) It covers both operational and environmental issues. 8. The condition of consumer equilibrium under cardinal approach in case of one commodity is A) Price of commodity should be rising. B) Price of commodity should equal to be marginal utility. C) Price of commodity should be decreasing. D) None of these. Show Answer Correct Answer: B) Price of commodity should equal to be marginal utility. 9. What you give up in a trade-off is called ..... A) An opportunity cost. B) A trade-off. C) Scarcity. D) Supply. E) Demand. Show Answer Correct Answer: A) An opportunity cost. 10. What will probably happen if something people want to buy is scarce? A) The price will go up. B) The price will go down. C) You will be able to get it for free. D) None of above. Show Answer Correct Answer: A) The price will go up. 11. Offering auto leases rather than requiring customers to pay the full purchase price provides possession utility. A) False. B) True. Show Answer Correct Answer: B) True. 12. Current assets refers to all assets that are able to be liquidated in a short amount of time. A) True. B) False. Show Answer Correct Answer: A) True. 13. The flexibility of demand for priceIs the value used to measureWhat is the following A) Measure the response of buying demandTo the price change. B) Measure the response of buying demandTo the change of income. C) Measure the price responseTo the change of purchase demand. D) Measure the response of buying demandTo change in demand for sale. Show Answer Correct Answer: A) Measure the response of buying demandTo the price change. 14. Medium term loans are for a period of??? A) 5 years. B) 1 year. C) 10 years. D) 2 years. Show Answer Correct Answer: A) 5 years. 15. What does normative science involve? A) Value judgements and prescriptions. B) Objective analysis and descriptions. C) Mathematical calculations and formulas. D) Historical data and trends. Show Answer Correct Answer: A) Value judgements and prescriptions. 16. The drink at the cafeteria, which has only one shop.And there are no other products that can be substitutedWhat will the demand of such beverages look like? A) With stable flexibility. B) Very flexible. C) Has the same flexibility as 1. D) With less flexibility. Show Answer Correct Answer: D) With less flexibility. 17. ..... is the idea that because consumers are free to purchase what they want and to refuse products they do not want, they have the ultimate control over what is produced. A) Voluntary Exchange. B) Capitalism. C) Consumer Sovereignty. D) Specialization. Show Answer Correct Answer: C) Consumer Sovereignty. 18. Under capitalist economies, the answer to the fundamental questions-what, how and for whom to produce are obtained by- A) Government regulation. B) Cost benefit analysis. C) Market forces of demand and supply. D) All of the above. Show Answer Correct Answer: C) Market forces of demand and supply. 19. An audit examines whether a firm's financial statement conforms to generally accepted accounting principles. A) True. B) False. Show Answer Correct Answer: A) True. 20. Businesses need to make a profit in order to stay open. A) False. B) True. Show Answer Correct Answer: B) True. 21. Which of the following is a factor of production? A) Wages. B) Enterprise. C) Dental treatment. D) Birthday card. Show Answer Correct Answer: B) Enterprise. 22. Which one of the following is an example of an external economy of scale? A) Managerial. B) Bureaucracy. C) Skilled labour. D) Bulk buying. Show Answer Correct Answer: C) Skilled labour. 23. The ..... of a decision is the value of the next-best alternative, or what you give up by choosing one alternative over another. A) Marginal Cost. B) Cost-Benefit Analysis. C) Opportunity Cost. D) Trade-off. Show Answer Correct Answer: C) Opportunity Cost. 24. Which of the following best describes an oligopoly? A) Many monopolistically competitive firms. B) A few firms sharing monopoly power. C) A former monopoly that has been broken up by the government. D) A government-granted franchise or monopoly. Show Answer Correct Answer: B) A few firms sharing monopoly power. 25. The Welch family has saved some money. They can spend it on a vacation to the Grand Canyon or build a swimming pool in their back yard. They decide to spend the money on a swimming pool. What is the opportunity cost of their decision? A) Swimming pool. B) Vacation. Show Answer Correct Answer: B) Vacation. 26. Which of these is NOT an example of a need? A) Shelter. B) Food. C) Watch. D) Water. Show Answer Correct Answer: C) Watch. 27. The automotive industry is known for being highly competitive. Companies invest heavily in research and development to create cars that appeal to consumers.Which of the following forms of market is most likely to be observed in the automotive industry? A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 28. Investments made by MNCs are termed as: A) Indigenous investment. B) Foreign investment. C) Entrepreneur's investment. D) None of the above. Show Answer Correct Answer: B) Foreign investment. 29. This type of business sells products directly to consumers. A) Service. B) Wholesale. C) Manufacturing. D) Retail. Show Answer Correct Answer: D) Retail. 30. When the demand for a product has a large drop-off because the price of the product increases, this is called A) Price stretch. B) Price elasticity. C) Price bounce. D) Price inelasticity. Show Answer Correct Answer: B) Price elasticity. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books