This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When two goods are perfect complementary, the indifference curve is: A) A straight line. B) U shaped. C) L-shaped. D) Circular in shape. Show Answer Correct Answer: C) L-shaped. 2. Which of the following organisations lays stress on liberalisation of foreign trade and foreign investment? A) World Health Organisation. B) International Monetary Fund. C) International Labour Organisation. D) World Trade Organisation. Show Answer Correct Answer: D) World Trade Organisation. 3. State interference is maximum in A) Mixed economy. B) Socialist economy. C) Capitalist economy. D) None. Show Answer Correct Answer: B) Socialist economy. 4. Which type of economy is run by the businesses & business owners? A) Command. B) Mixed. C) Communist. D) Market. Show Answer Correct Answer: D) Market. 5. A ..... occurs when producers are willing to sell different amounts of a product at every price. A) Change in supply. B) Shortage. C) Elasticity. D) Supply. E) Surplus. Show Answer Correct Answer: A) Change in supply. 6. Money exchanged between businesses and individuals for labor. A) Revenue. B) Profit. C) Spending. D) Wages. Show Answer Correct Answer: D) Wages. 7. The economic problems of relative scarcity refers to ..... A) Consumers purchasing goods and services from businesses. B) Consumers not being able to afford different goods and services. C) Consumers making purchasing decisions in relation to their needs and wants. D) Consumers making purchasing decisions in relations to goods and services. Show Answer Correct Answer: C) Consumers making purchasing decisions in relation to their needs and wants. 8. When demand increases, supply remaining constant, A) Price rises. B) Price falls. C) Demand falls. D) Supply falls. Show Answer Correct Answer: A) Price rises. 9. The branch of economic theory that deals with the problem of allocation of resources is A) Micro-Economic theory. B) Macro-economic theory. C) Econometrics. D) None of the above. Show Answer Correct Answer: A) Micro-Economic theory. 10. The complexity of the environment depends on the factors affecting it and the degree to which they are heterogeneous A) False. B) True. Show Answer Correct Answer: B) True. 11. Which of these is a determinant of supply? A) Taste and preference. B) Technology. C) Consumer income. D) Number of consumer. Show Answer Correct Answer: C) Consumer income. 12. Perfect elasticity is known as A) Finite elastic. B) Zero elastic. C) Infinite elastic. D) Unitary elastic. Show Answer Correct Answer: C) Infinite elastic. 13. The Internal Rate of Return ( IRR ) standard for project acknowledge, under hypothetically boundless assets, is A) IRR equivalent to the expenses of capital. B) IRR more noteworthy than the expenses of capital. C) IRR is not exactly the expenses of capital. D) None of the above mentioned. Show Answer Correct Answer: B) IRR more noteworthy than the expenses of capital. 14. The law which studies the direct relationship between price and quantity supplied of a commodity is A) Law of demand. B) Law of variable proportion. C) Law of supply. D) None of the above. Show Answer Correct Answer: C) Law of supply. 15. Which of the following is a good? A) Car. B) Visiting a doctor. C) Hairdressing. D) Computer repair. Show Answer Correct Answer: A) Car. 16. What effect is working when the price of a good falls and consumers tend to buy it instead of other goods. A) Substitution effect. B) Complementary effect. C) Price effect. D) Income effect. Show Answer Correct Answer: A) Substitution effect. 17. New economy policy 1991 was launched by ..... A) Mr. Deve Gowda. B) Mr. Narasimha Rao. C) Mr. V.P. Singh. D) Die.Manmohan Singh. Show Answer Correct Answer: B) Mr. Narasimha Rao. 18. Capital intensive technique would get chosen in a A) Developed economy where technology is better. B) Developing economy where technology is poor. C) Capital surplus economy where the relative price of capital is lower. D) Labour surplus economy where the relative price of capital is lower. Show Answer Correct Answer: C) Capital surplus economy where the relative price of capital is lower. 19. Which of these is a disadvantage of monopoly from a consumers perspective A) Sticky prices. B) More choice. C) Less choice. D) More innovative products. Show Answer Correct Answer: C) Less choice. 20. Forward planning goes hand in hand with A) Capital. B) Sales. C) Stock. D) Decision making. Show Answer Correct Answer: D) Decision making. 21. The income elasticity of demand is negative for a A) Inferior good. B) Superior good. C) Complement good. D) Normal good. Show Answer Correct Answer: A) Inferior good. 22. Human activities directed towards acquisition of wealth are called economic activities. A) TRUE. B) FALSE. C) CANNOT SAY. D) None of above. Show Answer Correct Answer: A) TRUE. 23. The combination of unlimited needs and wants with limited resources results in: A) Scarcity. B) Marketing. C) Competition. D) Economics. Show Answer Correct Answer: A) Scarcity. 24. Which of the following is true of a monopolistically competitive firm in long-run equilibrium? A) Price equals marginal cost and average total cost. B) Price equals average total cost but is greater than marginal cost. C) Price equals marginal cost and is greater than average total cost. D) The firm earns positive economic profits by producing at minimum average cost. Show Answer Correct Answer: B) Price equals average total cost but is greater than marginal cost. 25. Business is exchange of A) Goods to goods. B) Goods to money. C) Goods and services to money. D) Goods and services free of cost. Show Answer Correct Answer: C) Goods and services to money. 26. Which of these jobs is involved in production? A) Factory worker. B) Secretary. C) Zoo keeper. D) Truck driver. Show Answer Correct Answer: A) Factory worker. 27. Since micro economics splits up the entire economy into smaller parts for the purpose of intensive study, it is also known as A) Slicing method. B) Micro foundation of macro method. C) Bulldozer method. D) Micro-macro method. Show Answer Correct Answer: A) Slicing method. 28. Which type of economy has the government making all decisions? A) Market. B) Mixed. C) Traditional. D) Command. Show Answer Correct Answer: D) Command. 29. ..... is a loan taken by the government from its own people as well as from foreign countries. A) Public debt. B) Public revenue. C) Deficit financing. D) Public expenditure. Show Answer Correct Answer: A) Public debt. 30. A business which is a separate legal entity, who's management is usually separate from its owners, is which business structure? A) Sole trader. B) Franchise tagsBusiness Structures. C) Partnership. D) Company/Corporation. Show Answer Correct Answer: D) Company/Corporation. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business 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