This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 32 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Fisher's approach to demand for money is based on ..... function of money. A) Medium of exchange. B) Measure of value. C) Standard of payments. D) Store of value. Show Answer Correct Answer: A) Medium of exchange. 2. You have a lemonade stand and bought supplies for 5 dollars. You told your younger sister that if she would help you run the lemonade stand, you would pay her 10 dollars. She agreed to help. After the lemonade stand ended, you made 25 dollars. How much profit did you end up making? A) $ 20. B) $ 10. C) $ 15. D) $ 25. Show Answer Correct Answer: B) $ 10. 3. Central Problems arises in case of A) Capitalist Economy. B) Socialist Economy. C) Mixed Economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Normative statements are A) Value judgements. B) Verifiable or tested. C) Good statements. D) Statements in the alternative. Show Answer Correct Answer: A) Value judgements. 5. Which of the following would be considered a topic of study in Macroeconomics? A) The effect of increase in wages on the profitability of cotton industry. B) The effect on steel prices when more steel is imported. C) The effect of an increasing inflation rate on living standards of people in India. D) The effect of an increase in the price of coffee on the quantity of tea consumed. Show Answer Correct Answer: C) The effect of an increasing inflation rate on living standards of people in India. 6. Which factor of production is this? All the human time, effort, and talent that go into the making of products. A) Land. B) Labor. C) Capital. D) Entrepreneurship. E) Quality. Show Answer Correct Answer: B) Labor. 7. Commodity X is capital intensive if in its production A) Capital/Labour (K/L) ratio is greater than Y. B) Physical units of K and L are greater than Y. C) X requires better technology than Y. D) Y requires better technology than X. Show Answer Correct Answer: B) Physical units of K and L are greater than Y. 8. Which of the following refers to the financial statement detailing a firm's assets, liabilities, and owners' equity? A) Balance sheet. B) Income statement. C) Annual budget. D) Statement of cash flows. E) Expense report. Show Answer Correct Answer: A) Balance sheet. 9. In how many ways can cost classification be done? A) Four ways. B) Two ways. C) Three ways. D) Many ways. Show Answer Correct Answer: D) Many ways. 10. Interest rate is A) The price of goods and services. B) Price of money-tells you how high the cost of borrowing is, or high the rewards are for saving. C) The price you have to pay when you want to buy sth cash. D) Not very important number you will see when borrowing money. Show Answer Correct Answer: B) Price of money-tells you how high the cost of borrowing is, or high the rewards are for saving. 11. Which of the following is a non-financial method of motivating workers? A) Job rotation. B) Profit sharing. C) Performance-related pay. D) Piece rates. Show Answer Correct Answer: A) Job rotation. 12. The duty of a business to contribute to the well being of a community A) Consumer goods. B) Manufacturers. C) Service. D) Social responsibility. Show Answer Correct Answer: D) Social responsibility. 13. This type of entrepreneur has an idea for a product or service that could be beneficial to consumers. A) Serial. B) Social. C) Lifestyle. D) Business. Show Answer Correct Answer: D) Business. 14. Which of the following is a non-economic activity? A) An old man offering prayers in a temple. B) A factory owner producing school bags for sale in the market. C) A Chef cooking food for Restaurant. D) A person selling cold water on the pavement. Show Answer Correct Answer: A) An old man offering prayers in a temple. 15. Managerial Economics is based on the principles of ..... ? A) Microeconomics. B) Macroeconomics. C) Monetary Economics. D) Government Economics. Show Answer Correct Answer: A) Microeconomics. 16. ..... refers to the interaction of the domestic economy with rest of the world. A) Liberalization. B) Privatization. C) Globalization. D) None of above. Show Answer Correct Answer: C) Globalization. 17. What is the nature of Business Economics? A) It is a science and an art. B) It is a science and a social science. C) It is an art and a social science. D) It is a science, an art, and a social science. Show Answer Correct Answer: A) It is a science and an art. 18. Max is studying for his spelling test. Unfortunately, his favorite TV program is on right now. If he studies for the test, he will miss watching the show. Max decides to study for his test instead of watching TV. What is the opportunity cost of his decision? A) Watching TV. B) Studying for a test. Show Answer Correct Answer: A) Watching TV. 19. The ..... of hand sanitizer has had to increase at the factories because of the Coronavirus. A) Factors of Production. B) Consumption. C) Distribution. D) Production. Show Answer Correct Answer: D) Production. 20. Declaration of Independence A) A plan of government. B) A document written by American colonists explaining why the American colonies should no longer be ruled by Great Britain. C) A right given by God. D) None of above. Show Answer Correct Answer: B) A document written by American colonists explaining why the American colonies should no longer be ruled by Great Britain. 21. State the correct answer:The law of scarcity: A) Does not apply to rich, developed countries. B) Implies that consumers wants will never be completely satisfied. C) Implies that consumers wants will be satisfied in a socialistic system. D) Applies only to the less developed countries. Show Answer Correct Answer: B) Implies that consumers wants will never be completely satisfied. 22. Which of the following is a normative statement? A) Planned economies allocate resources via government departments. B) Most transitional economies have experienced problems of falling output and rising prices over the past decade. C) There is a greater degree of consumer sovereignty in market economies than planned economies. D) Reducing inequality should be a major priority for mixed economies. Show Answer Correct Answer: D) Reducing inequality should be a major priority for mixed economies. 23. Cost-push inflation is caused due to A) Rise in profits. B) Rise in wages. C) Shortage of raw materials. D) All of the above. Show Answer Correct Answer: D) All of the above. 24. Socialist Economy was propounded by: A) Adam Smith. B) A.C. Pigou. C) Karl Marx. D) Samuelson. Show Answer Correct Answer: C) Karl Marx. 25. Which type of economy is based on traditions and beliefs? A) Command. B) Market. C) Traditional. D) Mixed. Show Answer Correct Answer: C) Traditional. 26. A strategic factor of the environment, is an opportunity if you expect to have ..... A) A positive and relevant impact on your results. B) A positive impact on your results. C) A relevant impact on your results. D) None of the answers are correct. Show Answer Correct Answer: A) A positive and relevant impact on your results. 27. Economics is a ..... A) Science. B) Art. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: C) Both (1) and (2). 28. The law of Scarcity- A) Does not apply to developed and rich countries. B) Applies only to less developed countries. C) Implies that the consumers' want will be satisfied in a socialist economy. D) Implies that consumers' want will never be completely satisfied. Show Answer Correct Answer: D) Implies that consumers' want will never be completely satisfied. 29. Business that buys large quantity of goods from various producers, warehouses them and resells to retailers A) Service. B) Social responsibility. C) Wholesaler. D) Producer. Show Answer Correct Answer: C) Wholesaler. 30. What is the main motive of business A) Entertainment. B) Profit. C) Time pass. D) Spend surplus money. Show Answer Correct Answer: B) Profit. ← 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