This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 21 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Micro analysis deals with the A) Allocation of resources of the economy as between production of different goods and services. B) Determination of prices of goods and services. C) Behavior of individual decision makers. D) All of the above. Show Answer Correct Answer: B) Determination of prices of goods and services. 2. Debtors ..... during inflation. A) Lost. B) Lose. C) Gain. D) Won. Show Answer Correct Answer: C) Gain. 3. When as a result of increase in price of goods, total expenditure made on goods falls, price elasticity of demand is ..... than unity. A) Greater. B) Lesser. C) Nominal. D) None of these. Show Answer Correct Answer: A) Greater. 4. Liquidity preference theory of rate of interest is given by A) Keynes. B) Cambridge. C) Friedman. D) Fisher. Show Answer Correct Answer: A) Keynes. 5. Apple's latest product uses shock resistant glass to create a shatter proof screen. This is an example of ..... A) Place Utility. B) Form Utility. C) Information Utility. D) Possession Utility. Show Answer Correct Answer: B) Form Utility. 6. What is a computer-based system that allows people to communicate simultaneously from different locations via telephone, e-mail, or video? A) Electronic conferencing. B) Groupware. C) A data communication network. D) The Internet. Show Answer Correct Answer: A) Electronic conferencing. 7. ..... is the total value of all final goods and services produced by the country in certain year. A) Corporate income. B) National Income. C) Personal income. D) Foreign income. Show Answer Correct Answer: B) National Income. 8. Consumer borrow more to buy additional goods and services is what type of inflation? A) Cost-push inflation. B) Demand-pull inflation. Show Answer Correct Answer: B) Demand-pull inflation. 9. What should be the most important factor considered when you make a decision? A) The Opportunity Cost. B) The opinions of others. C) The lost opportunities. D) The Trade-offs. Show Answer Correct Answer: A) The Opportunity Cost. 10. Economics is a science because it ..... A) Uses research approach to study human behaviour. B) Uses scientific methods to study human behaviour. C) Uses biological methods to study human behaviour. D) Uses experimental pedagogy to study human behaviour. Show Answer Correct Answer: B) Uses scientific methods to study human behaviour. 11. If you choose an apple instead of a banana, the banana is the opportunity cost. A) True. B) False. Show Answer Correct Answer: A) True. 12. Marginal revenue and Marginal cost analysis is the corollary of the total revenue and total cost analysis A) False. B) True. Show Answer Correct Answer: B) True. 13. The quality of being honest and having strong moral principles A) Integrity. B) Work Ethic. C) Ethics. D) Inspiration. Show Answer Correct Answer: A) Integrity. 14. In what ways to change the price of the product?That causes excess supply A) Somsri sells oranges at the market price level. B) Correct. C) Somsri sells oranges at a higher price level than the market price. D) Somsri sells oranges at a lower price level than the market price. Show Answer Correct Answer: C) Somsri sells oranges at a higher price level than the market price. 15. An example of an 'import' is A) Pizza bought at Dominos at Birallee and eaten by a CCW student. B) Tesla electric cars sold in Australia. C) Bananas grown in Queensland and sold all over Australia. D) None of above. Show Answer Correct Answer: B) Tesla electric cars sold in Australia. 16. Scope of business economics includes A) Demand analysis. B) Supply analysis. C) Cost analysis. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Which of the following not the feature of socialist economy- A) Profit Motive. B) Relatively equal income distribution. C) Absence of economic choice. D) Collective ownership. Show Answer Correct Answer: A) Profit Motive. 18. Recessions can end if A) Workers choose to accept lower wages. B) Government policy is enforced to help the economy recover. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 19. Economics and accounting profits are different because A) Accounting costs are higher than economic costs because accounting costs do not bring the opportunity to think. B) Accounting profit is higher than economic profits because it does not have to deduct income tax. C) Accounting costs are lower than economic costs because accounting costs do not bring the opportunity to think. D) Accounting profits are lower than economic profits because of income tax. Show Answer Correct Answer: C) Accounting costs are lower than economic costs because accounting costs do not bring the opportunity to think. 20. Interdependence refers to: A) The cyclical relationship between the savings and investment sectors of the economy. B) The dependence of workers on wages. C) The reliance that exists between all participants in the economy on each other. D) Solving unlimited needs and wants with limited resources. Show Answer Correct Answer: C) The reliance that exists between all participants in the economy on each other. 21. The activities in Primary, Secondary and Tertiary sectors are ..... A) Interlinked. B) Interrelated. C) Interdependent. D) None of above. Show Answer Correct Answer: C) Interdependent. 22. The world biggest gold producer is ..... A) South Africa. B) Mexico. C) China. D) Chile. Show Answer Correct Answer: C) China. 23. What is "spam" ? A) A form of hacking. B) A form of firewall. C) Intellectual property. D) Junk e-mail. Show Answer Correct Answer: D) Junk e-mail. 24. In the short run production function, as the quantity of variable factor is increased the output also increases but after a certain point output ..... A) Doesn't effect. B) Starts being constant. C) Declines. D) Also increases. Show Answer Correct Answer: C) Declines. 25. Firms in perfect competition face a ..... A) Perfectly elastic demand curve. B) Perfectly inelastic demand curve. C) Perfectly elastic supply curve. D) Perfectly inelastic supply curve. Show Answer Correct Answer: A) Perfectly elastic demand curve. 26. Law of variable proportion is the new name of the famous A) Production Function. B) Law of Diminishing Returns. C) Law of Demand. D) Returns to Scale. Show Answer Correct Answer: B) Law of Diminishing Returns. 27. Few large companies dominate the market (airlines, car manufacturers etc) A) Hetermopoly. B) Monopoly. C) Thermopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 28. What is a Pure Command Economy A) There is no private sector. B) The free exchange of goods and services and private ownership of property. C) An economy organized with some free market elements and some socialistic elements. D) An economy where customs, traditions and believes prescribe the principles of economic organization for production of goods and services. Show Answer Correct Answer: A) There is no private sector. 29. In Adam Smith definition of economics, wealth refer to A) Material goods. B) Services. C) Both a and b. D) Neither a nor b. Show Answer Correct Answer: A) Material goods. 30. What are resources? A) Items that people can use to make or obtain what they need and want. B) An individual who buys goods and services from businesses. C) The contest between businesses to win over consumers. D) The money businesses get to keep after paying off expenses. Show Answer Correct Answer: A) Items that people can use to make or obtain what they need and want. ← 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