This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 28 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Law of supply states that the ..... the price of a good, the ..... is the quantity supplied for that good A) Lower, higher. B) Higher, lower. C) Higher, higher. D) None of above. Show Answer Correct Answer: C) Higher, higher. 2. The study of how individuals behave when it comes to satisfying needs and wants. A) EconomicActivity. B) Economics. C) Business. D) None of above. Show Answer Correct Answer: B) Economics. 3. The competitive environment includes all those factors external to the company that can have a significant impact A) False. B) True. Show Answer Correct Answer: B) True. 4. What is the definition of business? A) The study of how individuals behave when it comes to satisfying their unlimited wants and needs with limited resources. B) The activity of making profit by producing and selling consumers goods and services in exchange for money. C) Products created by businesses that you can physically touch and see. D) Work that businesses perform for consumers. Show Answer Correct Answer: B) The activity of making profit by producing and selling consumers goods and services in exchange for money. 5. Which factor is a factor that determines the flexibility of demand for price? A) Product characteristics. B) The duration of the production. C) Production techniques. D) Price of production factors. Show Answer Correct Answer: A) Product characteristics. 6. A firm's capacity depends on both how many people it employs and the number and size of its facilities. A) True. B) False. Show Answer Correct Answer: A) True. 7. Which of the following is not the subject matter of Business Economics? A) Should our firm be in this business?. B) How much should be produced and at price should be kept?. C) How will the product be placed in the market?. D) How should we decrease unemployment in the economy?. Show Answer Correct Answer: D) How should we decrease unemployment in the economy?. 8. ..... is a function of inputs. A) Raw Materials. B) Production Function. C) Labour. D) Output. Show Answer Correct Answer: D) Output. 9. The law of demand states that if there is an increase in a product selling price A) The quantity demanded of that good will decrease. B) The quantity supplied of that good will decrease. C) The quantity demanded of that good will increases. D) The quantity supplied of that good will increases. Show Answer Correct Answer: D) The quantity supplied of that good will increases. 10. Stable environments are those that are simple or straightforward, very dynamic and evolutionary. A) False. B) True. Show Answer Correct Answer: A) False. 11. Indifference curves between income and leisure for an individual are generally: A) Negatively sloped straight lines. B) Positively sloped straight lines. C) Convex to the origin. D) Concave to the origin. Show Answer Correct Answer: B) Positively sloped straight lines. 12. M4 money supply includes A) M1 + Total deposits of PO saving organizations. B) M3+ Time deposits of PO saving organizations. C) M3 + Total deposits of PO saving organizations. D) M2 + Total deposits of PO saving organizations. Show Answer Correct Answer: C) M3 + Total deposits of PO saving organizations. 13. Which of the below is an example of unorganised sector? A) A teacher teaching in school. B) A headload worker carrying a bag of cement on his back in a market. C) A factory worker going to work in a big factory. D) None of above. Show Answer Correct Answer: B) A headload worker carrying a bag of cement on his back in a market. 14. Frederick is revising his formulae for a test on break-even. He has mixed up his revision notes. What is the formulas for Profit A) Actual output-break-even point. B) Total revenue = total cost. C) Total revenue-total cost. D) Fixed cost + variable cost. Show Answer Correct Answer: C) Total revenue-total cost. 15. Capital, as economists use the term, A) Is the money the firm spend to hire resources. B) In money the firm raises from seeking stock. C) Refers to the process by which resources are transformed into useful forms. D) Refers to things that have already been produced that are in turn used to produce goods and services. Show Answer Correct Answer: D) Refers to things that have already been produced that are in turn used to produce goods and services. 16. Woolworth & Qantas are examples of a A) Small business. B) Medium business. C) Large business. D) Franchise. tagsBusiness Structures. Show Answer Correct Answer: C) Large business. 17. Speculation means A) Betting on horses. B) Forecasting future prices. C) Gambling. D) Planning for future purchases. Show Answer Correct Answer: B) Forecasting future prices. 18. An elasticity coefficient of-1 means that A) The demand curve is perfectly inelastic. B) The demand curve is perfectly elastic. C) The relative changes in price and quantity are equal. D) Expenditures on the good would increase if prices were reduced. Show Answer Correct Answer: C) The relative changes in price and quantity are equal. 19. Economics is a ..... science which deals with human wants and their satisfication A) Social. B) Physical. C) Political. D) Natural. Show Answer Correct Answer: A) Social. 20. Teacher teaches in a school is ..... Economic activity. A) BUSINESS. B) PROFESSION. C) EMPLOYMENT. D) NONE OF THE ABOVE. Show Answer Correct Answer: C) EMPLOYMENT. 21. The study of how people choose to use limited resources to satisfy their unlimited needs and wants. A) History. B) Psychology. C) Social studies. D) Economics. Show Answer Correct Answer: D) Economics. 22. Who is the person who is in charge of operating systems for gathering, organizing, and distributing information? A) Information systems manager. B) Operations manager. C) Communications manager. D) Research and development manager. E) Production manager. Show Answer Correct Answer: A) Information systems manager. 23. What type of products will firms produce in monopolistic competition? A) Firms produce homogenous products with one modification. B) Firms produce slightly differentiated products. C) Firms produce a variety of different products. D) Firms produce significantly differentiated products. Show Answer Correct Answer: B) Firms produce slightly differentiated products. 24. "Economics is what economists do" was remarked by A) Marshall. B) Jacob Viner. C) Keynes. D) Adam Smith. Show Answer Correct Answer: B) Jacob Viner. 25. Factors determining supply are A) Government. B) Price of a Commodity. C) Planning. D) Profit. Show Answer Correct Answer: B) Price of a Commodity. 26. Which of the following is a short run law. A) Law of constant return. B) Law of constant returns to scale. C) Law of diminishing returns. D) Law increasing returns to scale. Show Answer Correct Answer: C) Law of diminishing returns. 27. ..... is the change in total revenue irrespective of changes in price or due to the effect of managerial decision on revenue A) Average revenue. B) Marginal revenue. C) Incremental revenue. D) Total revenue. Show Answer Correct Answer: C) Incremental revenue. 28. Contribution is fixed cost + ..... A) Profit. B) Sales. C) Margin of safety. D) Variable. Show Answer Correct Answer: A) Profit. 29. What are the three parts of product cost? A) Direct materials. B) Direct labor. C) Manufacturing overhead. D) All of the above. Show Answer Correct Answer: D) All of the above. 30. The next sentence is incorrect. A) Production is a matter of transformation of production factors into products. B) In the short term, the manufacturer cannot change all types of factors.This is due to the very short time. C) The average productivity of labor can tell us about the increase in the total productivity of all workers. D) In the long run, the production unit is able to change the amount of various production factors. Show Answer Correct Answer: C) The average productivity of labor can tell us about the increase in the total productivity of all workers. ← 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