This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 20 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the aim of contractionary monetary policy? A) Stimulate the economy. B) Encourage people to buy more, increasing inflation. C) Lower demand and reduce inflation. D) Raise employment levels. Show Answer Correct Answer: C) Lower demand and reduce inflation. 2. Which of the following is not within the scope of Business Economics? A) Capital Budgeting. B) Risk Analysis. C) Business Cycles. D) Accounting Standards. Show Answer Correct Answer: D) Accounting Standards. 3. Services are more tangible, more customized, and more storable than most products. A) True. B) False. Show Answer Correct Answer: B) False. 4. A need is something people can live without. A) True. B) False. Show Answer Correct Answer: B) False. 5. The third step in the decision making process is A) Make a choice. B) Identify the alternatives. C) Define the problem. D) Evaluate the alternatives. Show Answer Correct Answer: D) Evaluate the alternatives. 6. .... Ram:My corn harvest this year is poor.Krishan:Don't worry. Price increases will compensate for the fall in quantity supplied. Vinod:Climate affects crop yields. Some years are bad, others are good.Madhu:The Government ought to guarantee that our income will not fall.In this conversation, the normative statement is made by A) KRISHAN. B) VINOD. C) MADHU. D) RAM. Show Answer Correct Answer: C) MADHU. 7. Name the occupation in which people work for others and get remunerated in return A) Business. B) Profession. C) Employment. D) None of the above. Show Answer Correct Answer: C) Employment. 8. What are the four main parts of the circular flow diagram? A) Factor Market, households, Stock Market, super market. B) Product Market, House Market, Factor Market, Good Market. C) Product Market, Stock Market, Factor Market, Fish Market. D) Factor Market, Product Market, Households, Firms. Show Answer Correct Answer: D) Factor Market, Product Market, Households, Firms. 9. What of the following is a feature of a monopoly? A) Price is set freely by the consumers. B) There is plenty of competition. C) The product sold is unique. D) There are very few barriers to entry. Show Answer Correct Answer: C) The product sold is unique. 10. According to the law of supply, supply of a commodity is dependent on A) Price. B) Demand. C) Cost. D) Other factors. Show Answer Correct Answer: A) Price. 11. Which among the following are the steps of demand forecasting? A) Setting objectives. B) Setting time period. C) Estimating results. D) All of these. Show Answer Correct Answer: D) All of these. 12. Opportunity Cost is best defined as A) The price you pay to purchase something. B) The benefit you gain by making a decision. C) The amount of debt you take on by making a decision. D) The best rejected alternative you give up when making a decision. Show Answer Correct Answer: D) The best rejected alternative you give up when making a decision. 13. What are the outlay costs? A) Fuel payment or electricity bills. B) The cost made for certain product. C) Costs that are non traceable. D) The cost that combines profit and loss. Show Answer Correct Answer: A) Fuel payment or electricity bills. 14. When supply of a commodity decreases on a fall in its price, its is called A) Decrease in supply. B) Expansion of supply. C) Increase in supply. D) Contraction of supply. Show Answer Correct Answer: D) Contraction of supply. 15. Perfect market has A) Homogeneous product. B) Special goods. C) Only industrial goods. D) Heterogeneous goods. Show Answer Correct Answer: A) Homogeneous product. 16. Economy that is based on supply and demand where individual companies and consumers make the decisions about what, how and for whom items will be produced. A) Command economy. B) Market economy. C) Mixed economy. D) None of above. Show Answer Correct Answer: B) Market economy. 17. A country's easy monetary policy is often used to correct the problem of A) Unemployment. B) Globalization. C) Import quotas. D) High taxes. Show Answer Correct Answer: A) Unemployment. 18. Tools, machines, etc. are included in- A) Human capital. B) Sunk factor. C) Fixed capital. D) Circulating factor. Show Answer Correct Answer: C) Fixed capital. 19. The price elasticity of demand is a measure of A) The equilibrium price of a good or service. B) Whether a good or service is a substitute or a complement. C) Buyers' responsiveness to changes in price of a good or service. D) The amount of a good or service purchased when income decreases. Show Answer Correct Answer: C) Buyers' responsiveness to changes in price of a good or service. 20. An offer curve ..... A) Differs from an usual demand curve only. B) Differs from an usual supply curve only. C) Differs from both usual demand and supply curves. D) Differs in other countries. Show Answer Correct Answer: C) Differs from both usual demand and supply curves. 21. The rights of individuals and groups to own property is called ..... A) Private property rights. B) Market economy. C) Economic freedom. D) Consumer sovereignty. Show Answer Correct Answer: A) Private property rights. 22. The final business organization in an indirect channel of distribution for consumer products A) Manufacturer. B) Service. C) Wholesaler. D) Retailer. Show Answer Correct Answer: D) Retailer. 23. Most of the workers in ..... sector enjoy job security. A) Public. B) Organised. C) Unorganised. D) Private. Show Answer Correct Answer: A) Public. 24. A scheme for promoting residential school for girls at the elementary level is ..... A) Midday meal. B) Kashtruba Gandhi Balika vidyalaaya. C) Model Schools Scheme. D) None of these. Show Answer Correct Answer: B) Kashtruba Gandhi Balika vidyalaaya. 25. What is a Traditional Economy A) An economy organized with some free market elements and some socialistic elements. B) An economy where customs, traditions and believes prescribe the principles of economic organization for production of goods and services. C) There is no private sector. D) The free exchange of goods and services and private ownership of property. Show Answer Correct Answer: B) An economy where customs, traditions and believes prescribe the principles of economic organization for production of goods and services. 26. Robbins definition of economics laid stress on A) Material welfare. B) Choice under scarcity. C) Sustainable growth. D) Growth definition. Show Answer Correct Answer: B) Choice under scarcity. 27. India has adopted ..... policy of economic development since 1991 A) Liberal. B) Restrictive. C) Both a and b. D) None of those. Show Answer Correct Answer: A) Liberal. 28. In every economic system, scarcity imposes limitations on A) Households, business firms, governments, and the nation as a whole. B) Households and business firms, but not the governments. C) Local and state governments, but not the federal government. D) Households and governments, but not business firms. Show Answer Correct Answer: A) Households, business firms, governments, and the nation as a whole. 29. Something you would like to have, but isn't necessary for life A) Want. B) Need. C) Raw goods. D) Service. Show Answer Correct Answer: A) Want. 30. Why might the price of a popular toy go up in price during a holiday? A) Scarcity. B) Opportunity cost. C) Too many toys. D) Competition. Show Answer Correct Answer: A) Scarcity. ← 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