This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a key feature of Market Economies? A) Trade Regulation. B) Voluntary Exchange. C) Competition. D) Private Property & Markets. Show Answer Correct Answer: A) Trade Regulation. 2. A Firm's profitability depends much on its ..... of production. A) Price. B) Charge. C) Cost. D) All the above. Show Answer Correct Answer: C) Cost. 3. A person who uses raw materials to create something new A) Consumer. B) Retailer. C) Wholesaler. D) Builder. Show Answer Correct Answer: D) Builder. 4. When production increases average total cost tends to do what? A) Remains the same. B) Increases. C) Decreases then increases. D) Decreases. Show Answer Correct Answer: C) Decreases then increases. 5. What kind of cost is the following?That will continuously decrease when the production volume increases A) Average fixed cost. B) Average variable costs. C) Total average cost. D) Total average cost. Show Answer Correct Answer: A) Average fixed cost. 6. Relationship between the amount of a resource that is available and the price. A) Demand. B) Supply. C) Market. D) Inflation. Show Answer Correct Answer: B) Supply. 7. The money left over after all business costs are subtracted A) Profit. B) Marginal expenses. C) Net profit. D) Revenue. Show Answer Correct Answer: C) Net profit. 8. Because of scarcity, people are forced to make ..... about how to use resources. A) Houses. B) Opportunities. C) Choices. D) Desires. Show Answer Correct Answer: C) Choices. 9. Which of the following Is a type of economic activities? A) Production. B) Consumption. C) Exchange and Investment. D) All of these. Show Answer Correct Answer: D) All of these. 10. If the total cost is US$ 35, 000, 000 and output is 100, 000 units, what is the average cost? A) US$ 350. B) US$ 3, 500. C) US$ 100, 000. D) US$ 35. Show Answer Correct Answer: A) US$ 350. 11. Which of the following is not a category of a ratio? A) Return on assets. B) Solvability. C) Liquidity. D) Profitability. Show Answer Correct Answer: A) Return on assets. 12. Which of the following is not one of the four central questions that the study of economics is supposed to answer? A) How are goods produced?. B) When are goods produced?. C) Who produces what?. D) Who consumes what?. Show Answer Correct Answer: B) When are goods produced?. 13. A situation where there is only one buyer A) Oligopoly. B) Monopoly. C) Monopsons. D) Perfect competition. Show Answer Correct Answer: C) Monopsons. 14. Market Economy is on the basis of A) Social consideration. B) Supply and Demand forces in the market. C) Both A and B. D) Other. Show Answer Correct Answer: B) Supply and Demand forces in the market. 15. The term group equalibrium is related to A) Perfect competition. B) Oligopoly. C) Duopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 16. In Porter's five forces model, the analysis of the industrial sector is studied from the supply A) True. B) False. Show Answer Correct Answer: A) True. 17. C= a-bT equation of consumption and tax shows A) Consumption and tax are directly related. B) Consumption and tax are inversely related. C) Tax is dependent on consumption. D) Consumption is independent variable. Show Answer Correct Answer: B) Consumption and tax are inversely related. 18. Coke Zero updates its product label to communicate its sugar free features. This is an example of ..... A) Form Utility. B) Possession Utility. C) Place Utility. D) Information Utility. Show Answer Correct Answer: D) Information Utility. 19. What type of business did the Sherman Antitrust Act try to break up? A) Monopolies. B) Small Business. C) Meat Packaging. D) Joint-Stock Companies. Show Answer Correct Answer: A) Monopolies. 20. What are internal economies of scale? A) Rising average costs when a firm becomes too big. B) Falling average costs due to expansion. C) Cost benefits that an individual firm can enjoy when it expands. D) More investment into large factory machinery. Show Answer Correct Answer: B) Falling average costs due to expansion. 21. Marginal utility approach was given by: A) J.R. Hicks. B) Alfred Marshall. C) Robbins. D) A.C. Pigou. Show Answer Correct Answer: B) Alfred Marshall. 22. The regulation and development of insurance in India is managed by ..... A) SEBI. B) IRDA. C) FICCI. D) LIC. Show Answer Correct Answer: B) IRDA. 23. The cost of next best alternative foregone is: A) Opportunity Cost. B) Diminishing Cost. C) Total Cost. D) Marginal Cost. Show Answer Correct Answer: A) Opportunity Cost. 24. The 5 types of economic utilities are Time Utility, Place Utility, Form Utility, Possession Utility, and Information Utility A) True. B) False. Show Answer Correct Answer: A) True. 25. When the price is more expensiveWhile the demand of shrimp paste is less flexibleWhat will the cost of buying shrimp paste of the housekeeper be like? A) Irresistible. B) Stable. C) More. D) Reduce. Show Answer Correct Answer: C) More. 26. Which of the following products is likely to show price elasticity? A) Eggs. B) Milk. C) Bread. D) Fresh fruit. Show Answer Correct Answer: D) Fresh fruit. 27. In this business model, the company owner grants another business owner the rights to use the company's name, but must sign a contract and follow rules. A) Freemium. B) Business. C) Subscription. D) Franchise. Show Answer Correct Answer: D) Franchise. 28. According to ....., India's banking sector is regulated and capitalized. A) CRISIL. B) SEBI. C) ICRA. D) RBI. Show Answer Correct Answer: D) RBI. 29. What is the ratio of a pound of yellow squash @ $ .40 a pound and a pound of butternut squash @ $ 1.20 a pound? A) 1 to 4. B) 1 to 3. C) 1 to 1. D) 1 to 2. Show Answer Correct Answer: B) 1 to 3. 30. Which of the following is characteristic of a buyer's market: A) High demand. B) Steady demand. C) Low supply. D) Low prices. Show Answer Correct Answer: D) Low prices. ← 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