This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Economics is "On the one side, a study of wealth; and on the other, and more important side, part of a study of man" . This is stated by A) Adam Smith. B) Alfred Marshall. C) Robbins. D) Samuelson. Show Answer Correct Answer: B) Alfred Marshall. 2. Macro Economics deals with A) External value of money. B) Employment and economic growth. C) General price level. D) All of above. Show Answer Correct Answer: D) All of above. 3. Profit motive is a merit of ..... A) Socialism. B) Capitalism. C) Mixed Economy. D) None of the above. Show Answer Correct Answer: B) Capitalism. 4. Bookkeeping is a comprehensive system for collecting, analyzing, and communicating financial information. A) False. B) True. Show Answer Correct Answer: A) False. 5. When marginal utility from the consumption of a commodity is zero, then the: A) Total utility is zero. B) Total utility is highest. C) Total utility is rising. D) Total utility is falling. Show Answer Correct Answer: B) Total utility is highest. 6. State which of the following statement is not true. A) If the recourses were unlimited, people would be able to satisfy their wants. B) If recourse has only single use, then also economic problem would not arise. C) All countries, without exception, face problem of scarcity. D) Developed countries do not face Central Economic Problems. Show Answer Correct Answer: D) Developed countries do not face Central Economic Problems. 7. The interference of the government is very limited in A) Socialist economy. B) Capitalist economy. C) Mixed economy. D) All the above. Show Answer Correct Answer: B) Capitalist economy. 8. What type of government policy involves raising or lowering taxes, and increasing or decreasing government spending? A) Social. B) Disciplinary. C) Monetary. D) Fiscal. Show Answer Correct Answer: D) Fiscal. 9. Which of the following might be a reason for a business to invest more in training? A) Improve labour flexibility. B) Improve the punctuality of workers. C) Reduce the average cost of recruitment. D) Increase labour turnover. Show Answer Correct Answer: A) Improve labour flexibility. 10. Firms that dominate the market benefit from barriers to entry? A) False. B) True. C) Sometimes. D) Never. Show Answer Correct Answer: B) True. 11. Cost which do not change with the level of output is A) Marginal cost. B) Variable cost. C) Fixed cost. D) None of above. Show Answer Correct Answer: C) Fixed cost. 12. Oligopoly differs from monopoly and perfect competition in that ..... A) Firms consider other firms' actions when choosing price and quantity. B) There are a few firms in the industry. C) Firms act strategically. D) D. all of the above. Show Answer Correct Answer: D) D. all of the above. 13. In today's business world, the two things considered the most important for a working person to be assured their large company is providing for them are A) Good wages and benefits. B) Few hours and safe working conditions. C) Access to the executive washroom and fancy peanuts in a tray. D) Better food in the company cafeteria and nicer-looking carpeting. Show Answer Correct Answer: A) Good wages and benefits. 14. A company sells $ 100 worth of products. It cost them $ 75 to make the products. What is the profit? A) There is no profit. B) $ 175. C) $ 25. D) $ 75. Show Answer Correct Answer: C) $ 25. 15. In the function D=f(P), D is the ..... variable A) Independent. B) Dependent. Show Answer Correct Answer: B) Dependent. 16. At the point of inflexion the marginal product is at its A) Zero. B) Is equal to total product. C) Negative. D) Maximum. Show Answer Correct Answer: D) Maximum. 17. A popular bakery has only a few ingredients left to make their products. They could bake muffins or cookies, but they can't make both. The bakers decide to make cookies for their customers. What is the opportunity cost of their decision? A) Muffins. B) Cookies. Show Answer Correct Answer: A) Muffins. 18. ..... debt is becoming very common these days A) Unproductive debt. B) External debt. C) Internal debt. D) Productive debt. Show Answer Correct Answer: B) External debt. 19. The word 'Economics' has the ..... origin A) French. B) European. C) Roman. D) Greek. Show Answer Correct Answer: D) Greek. 20. Which of the following is a definition of multinational enterprises? A) At least half its directors are foreign nationals. B) The affiliates are responsive to a number of important environment forces. C) The company owns at least 30 percent of its business in foreign markets. D) The overseas market is larger than the domestic market. Show Answer Correct Answer: B) The affiliates are responsive to a number of important environment forces. 21. ..... is the desire for a product and the ability to pay for it. A) Change in demand. B) Demand. C) Supply. D) Elasticity. Show Answer Correct Answer: B) Demand. 22. Which cost are recorded in books of accounts A) Explicit cost. B) Opportunity cost. C) Social cost. D) Implicit cost. Show Answer Correct Answer: A) Explicit cost. 23. Which of the following is NOT an example of a service? A) A teacher. B) A governor. C) A bus driver. D) A pro football player. Show Answer Correct Answer: D) A pro football player. 24. The price of silicon used to make computer chips increases is what type of inflation? A) Cost-push inflation. B) Demand-pull inflation. Show Answer Correct Answer: A) Cost-push inflation. 25. According to the ....., when price decreases, supply decreases, and vice versa. A) Change in supply. B) Change in quantity demanded. C) Law of supply. D) Elasticity of supply. Show Answer Correct Answer: C) Law of supply. 26. At equilibrium under ordinal approach the MRS should be equal to A) Price Ratio. B) Income. C) MRTS. D) Price. Show Answer Correct Answer: A) Price Ratio. 27. The introduction of a minimum wage in the labour market will: A) Raise employment and lower the wage rate. B) Raise the wage and increase employment. C) Raise the wage rate and increase unemployment. D) Reduce the wage rate but boost employment. Show Answer Correct Answer: C) Raise the wage rate and increase unemployment. 28. The total amount your customers pay your business for its products or services A) Profit. B) Gross profit. C) Marginal fees. D) Revenue. Show Answer Correct Answer: D) Revenue. 29. Demand Function explain relationship between demand for Commodity and its ..... A) Only Price. B) Determinants. C) Elements. D) Elasticity. Show Answer Correct Answer: B) Determinants. 30. Things that change or vary are called A) Equations. B) Variables. C) Functions. D) Graphs. Show Answer Correct Answer: B) Variables. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBusiness Economics Quiz 1Business 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