This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 31 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 31 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A short run production function is one in which- A) At least one factor is fixed. B) At least one factor is variable. C) All factors are fixed. D) All factors are variable. Show Answer Correct Answer: A) At least one factor is fixed. 2. The change in total product that results from hiring one more worker is called ..... A) Increasing Returns. B) Marginal Utility. C) Marginal Product. D) Diminishing Returns. Show Answer Correct Answer: C) Marginal Product. 3. The increase in production factors is 70% more than before, resulting in 90% increased production, indicating that the return to scale is in any form. A) Constant Returns. B) Marginal Returns. C) Increasing Returns. D) Decreasing Returns. Show Answer Correct Answer: C) Increasing Returns. 4. How many firms are there in an oligopoly? A) Many. B) Few. C) Eight. D) One. Show Answer Correct Answer: B) Few. 5. In which production function, the degree of homogeneity is always one A) Homogeneous production function. B) Regression. C) Cobb Douglas production function. D) Linear homogeneous production function. Show Answer Correct Answer: D) Linear homogeneous production function. 6. From the data in the table, find the value of C A) 10. B) 30. C) 22. D) 18. Show Answer Correct Answer: C) 22. 7. Which of the following statements are positive statements?1. india is overpopulated2. agricultural income should be taxed3. service class should be exempted from income tax4.there is tremendous tax evasion in india A) 1 and 2. B) 1 and 3. C) 1 and 4. D) 3 and 4. Show Answer Correct Answer: C) 1 and 4. 8. The problem of what to produce relates to A) The production of goods. B) The technique of production to produce goods. C) The distribution of goods and services. D) None of these. Show Answer Correct Answer: A) The production of goods. 9. Normative Economics is based on: A) Ethical Considerations. B) Facts and Generalisation. C) What is?. D) All of the above. Show Answer Correct Answer: A) Ethical Considerations. 10. Who expressed the view that "Economics is neutral between end" ? A) Robbins. B) Marshall. C) Pigou. D) Adam smith. Show Answer Correct Answer: A) Robbins. 11. An ability of a good or service to be useful and give satisfaction to someone. A) Utility. B) Scarcity. C) Productivity. D) Value. Show Answer Correct Answer: A) Utility. 12. Porter's five forces model allows: A) Understand the functioning of the company in relation to its structure. B) Understand the causal relationships where the company operates. C) Understanding the basic sector in relation to its structure. D) Understanding the industrial sector, in relation to its structure. Show Answer Correct Answer: D) Understanding the industrial sector, in relation to its structure. 13. In the example of the pizza car, what were variable costs (according to the book) A) Depreciation. B) Stock prices. C) Number of italians in town. D) Gas. Show Answer Correct Answer: D) Gas. 14. A system of economy in which all the means of production are owned and controlled by the private individuals for the purpose of profit is called: A) Socialist Economy. B) Capitalist Economy. C) Mixed Economy. D) All of the above. Show Answer Correct Answer: B) Capitalist Economy. 15. What is meant by opportunity cost? A) The cost of the item selected. B) The labour used in producing the product. C) The next best alternative foregone. D) The cost of exploring business opportunities. Show Answer Correct Answer: C) The next best alternative foregone. 16. When Joe goes to Wal-Mart to buy some new baseball cards, is he a consumer or a producer? A) Consumer. B) Producer. Show Answer Correct Answer: A) Consumer. 17. Which of the following is a free good? A) Prizes of food items given away by a supermarket. B) Wind coming from the sea. C) Recycled paper. D) A vaccination provided by the state without charge. Show Answer Correct Answer: B) Wind coming from the sea. 18. A financial strategy aimed at ensuring maximum efficiency in a company's cash flow. A) Cash Inflow. B) Cash Outflow. C) Working Capital. D) Capital Management. Show Answer Correct Answer: D) Capital Management. 19. The indifference curve are A) Negatively sloped. B) Horizontal. C) Positive sloped. D) Vertical. Show Answer Correct Answer: A) Negatively sloped. 20. What are not the advantages of division of labour for the worker? A) Highly skilled on a task. B) Learning new skills. C) Repetition. D) Enjoy more job satisfaction. Show Answer Correct Answer: C) Repetition. 21. The central problem in economics is that of A) Comparing the success of command versus market economies. B) Allocating scares resources in such a manner that society's unlimited needs orwants are satisfied in the best possible manner. C) Guaranteeing the production occurs in the most efficient manners. D) Guaranteeing a minimum level of income for every citizen. Show Answer Correct Answer: B) Allocating scares resources in such a manner that society's unlimited needs orwants are satisfied in the best possible manner. 22. The branch of economic theory that deals with problem of allocating resources. A) Microeconomics. B) Macroeconomics. C) Econometrics. D) None. Show Answer Correct Answer: A) Microeconomics. 23. As the price of a good rises in a market, it acts as a signal: A) Consumers that they should buy a greater quantity of the good. B) To producers that they should supply a greater quantity of the good. C) To consumer that they should increase their demand for the good. D) To producers that they should increase their supply of the good. Show Answer Correct Answer: B) To producers that they should supply a greater quantity of the good. 24. A budget constraints line is a result of: A) Market price of commodity X. B) Market price of commodity Y. C) Income of the consumer. D) All of these. Show Answer Correct Answer: D) All of these. 25. When the laborers and the management work out things that are best for the laborers it is called A) Collective bargaining. B) Government protocol. C) Rearranging positions. D) Income negotiating. Show Answer Correct Answer: A) Collective bargaining. 26. What is an oligopoly? A) A market with a few large firms dominating the market. B) A market with only two firms. C) A market is shared by a small number of producers or sellers. D) A market with many firms. Show Answer Correct Answer: A) A market with a few large firms dominating the market. 27. Demand is a function of A) Product. B) Cost. C) Price. D) Firm. Show Answer Correct Answer: C) Price. 28. Which definition of scarcity is the most accurate? A) A frightening town. B) The earth's resources are unlimited and we can use as much of them as we like. C) The earth's resources are limited and we cannot have everything. D) None of above. Show Answer Correct Answer: C) The earth's resources are limited and we cannot have everything. 29. Which of the following is studied under Micro Economics? A) Individual unit. B) Economic Aggregate. C) National Income. D) None of these. Show Answer Correct Answer: D) None of these. 30. Due to recession, employment rate ..... and output rate ..... A) Rises ; rises. B) Falls ; falls. C) Rises ; falls. D) Falls ; rises. Show Answer Correct Answer: B) Falls ; falls. ← 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