This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the supply decreases and the demand increases then the price will ..... A) Decrease. B) Increase. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Increase. 2. What is a land product A) Surfboard. B) Tractor. C) Diamonds. D) Car. Show Answer Correct Answer: C) Diamonds. 3. Which is not a likely disadvantage of a small firm? A) Higher costs. B) Difficulty attracting quality staff. C) Vulnerability to competition (especially from larger companies). D) Lower overall wage costs. Show Answer Correct Answer: D) Lower overall wage costs. 4. If actual reward is greater than value of risk then the company will face A) Profit. B) Loss. C) No loss no profit. D) Shut down. Show Answer Correct Answer: A) Profit. 5. In a market economy all assets are held by: A) Jointly by government. B) Government. C) Investors. D) Privately. Show Answer Correct Answer: D) Privately. 6. . Market which has two firms is known as A) Oligopoly. B) Duopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: B) Duopoly. 7. Which of the following is not a phase in the law of variable proportions A) Negative returns. B) Diminishing returns. C) Constant returns. D) Increasing returns. Show Answer Correct Answer: C) Constant returns. 8. When an individual's income falls (while everything else remains the same), his demand for an inferior good: A) Negative. B) Increases. C) Remains unchanged. D) Decrease. Show Answer Correct Answer: D) Decrease. 9. Which of the following is not a fundamental economic question? A) What production should take place?. B) For whom production should take place?. C) How production should take place?. D) Why production should take place?. Show Answer Correct Answer: D) Why production should take place?. 10. Buying a Playstation is an example of a ..... A) Want. B) Need. Show Answer Correct Answer: A) Want. 11. Which of the following is a benefit of a command economy? SELECT ALL THAT APPLY A) Political Freedom. B) Economic Freedom. C) Provide for the poor, sick, elderly, etc. through government programs. D) Production efficiency. E) Centrally planned decisions. Show Answer Correct Answer: C) Provide for the poor, sick, elderly, etc. through government programs. 12. Monopoly power is high when A) There are no close substitutes. B) There are no rivals. C) There is only a single seller of the product. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. The most notable incentive in economics is ..... A) Revenue. B) Profit. C) Price. D) Expenditure profit. Show Answer Correct Answer: C) Price. 14. "The Fed" refers to the ..... A) Federal Reserve System. B) Federal Bureau of Investigation. C) Federal Income Tax. D) Federal Government. Show Answer Correct Answer: A) Federal Reserve System. 15. An inferior goods is a commodity whose ..... with an increase in income A) Demand falls. B) Demand raise. C) Supply falls. D) Supply raise. Show Answer Correct Answer: A) Demand falls. 16. What are the basic economic problems? A) How to Produce? For whom to Produce? When to Produce?. B) What to Produce? How to Produce? For whom to Produce?. C) What to Produce? Where to Produce? When to Produce?. D) How to Produce? Where to Produce? When to Produce?. Show Answer Correct Answer: B) What to Produce? How to Produce? For whom to Produce?. 17. Quality improvement teams are groups of employees from various work areas who define, analyze, and solve common production problems. A) False. B) True. Show Answer Correct Answer: B) True. 18. (A) There is similarity between Robbins's definition and Samuelson's definition(B) Samuelson's definition is not only dynamic in content; it is also wider in scope.Of these A) A is true, but B is false. B) A is false, but B is true. C) Both A and B are true. D) Both A and B are false. Show Answer Correct Answer: C) Both A and B are true. 19. Suppliers have the ability to influence company decisions in the same sector. A) False. B) True. Show Answer Correct Answer: B) True. 20. The reward a businessman gets for bearing the risks is called A) Bonus. B) Profit. C) Commission. D) Remuneration. Show Answer Correct Answer: B) Profit. 21. The ..... is the market for goods and services; the ..... is the market for the factors of production A) Product Market; Factor Market. B) Producer Market; Consumer Market. C) Consumer Market; Production Market. D) Factor Market; Product Market. Show Answer Correct Answer: A) Product Market; Factor Market. 22. In short run, the monopolists A) Incurs a loss. B) Makes a profit. C) Break even. D) Any of the above. Show Answer Correct Answer: B) Makes a profit. 23. Intellectual property is something produced by a computer that has personal value. A) True. B) False. Show Answer Correct Answer: B) False. 24. The advantage of the payback period is: A) Adjustment for uncertainty of early CF. B) It is simple to calculate and use. C) Does not discount CF. D) None of the above. Show Answer Correct Answer: B) It is simple to calculate and use. 25. What is not an advantage of a monopoly? A) Achieving economies of scale. B) High level of research and development. C) Producing a greater quantity at profit-maximizing level of output. D) Higher prices and lower output. Show Answer Correct Answer: D) Higher prices and lower output. 26. What is economic activity? A) An individual who buys goods and services from businesses. B) The money businesses get to keep after paying off expenses. C) The contest between businesses to win over consumers. D) The activity of producing and selling of goods or services and making them available to all consumers. Show Answer Correct Answer: D) The activity of producing and selling of goods or services and making them available to all consumers. 27. The difference between a country's exports and imports. A) Foreign debt. B) Comparative advantage. C) Balance of trade. D) Opportunity cost. Show Answer Correct Answer: C) Balance of trade. 28. Each stage in the supply chain adds value for the final customer. A) False. B) True. Show Answer Correct Answer: B) True. 29. In a mixed economy A) All economic decisions are taken by the central authority. B) All economic decisions are taken by private entrepreneurs. C) Economic decisions are partly taken by the state and partly by the private entrepreneurs. D) None of the above. Show Answer Correct Answer: C) Economic decisions are partly taken by the state and partly by the private entrepreneurs. 30. What is the profit maximizing condition? A) MR = D. B) D = Profits. C) MCDONALD'S. D) MR = MC. Show Answer Correct Answer: D) MR = MC. ← 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