This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 33 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 33 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Maddie wants to buy an IPod so she can listen to her favorite tunes. Her mom told her that she would need to pay for the IPod herself. Maddie gets a weekly allowance of $ 3.00. What is the best thing Maddie can do so that she can get what she wants as soon as she can? A) She needs to spend her allowance each week on the little things she wants. B) She needs to put her allowance in savings. C) She needs to do things to earn extra money like babysit, have a lemonade stand, and have a toy sale, as well as save her allowance. D) She should beg her mom for the IPod. Show Answer Correct Answer: C) She needs to do things to earn extra money like babysit, have a lemonade stand, and have a toy sale, as well as save her allowance. 2. Fixed cost per unit increases when A) Variable cost per unit decreases. B) Variable cost remains constant. C) Volume of production decreases. D) Volume of production increases. Show Answer Correct Answer: C) Volume of production decreases. 3. A system in which the society's leaders, usually members of the central government, make all economic decisions is called a(n) ..... A) Centrally planned economy. B) Socialist government. C) Communist government. D) Command economy. Show Answer Correct Answer: A) Centrally planned economy. 4. What type of factor of production is a road? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: A) Capital. 5. ..... means selling a security with an agreement to repurchase it at a future date. A) Commercial Papers. B) Repo Rate. C) Certificate of Deposit. D) Reverse Repo Rate. Show Answer Correct Answer: B) Repo Rate. 6. When changes in a product's price cause corresponding changes in consumer demand, the product has A) Elastic demand. B) Usefulness. C) Utility. D) Inelastic demand. Show Answer Correct Answer: A) Elastic demand. 7. Item bought for personal use A) Raw Good. B) Capital Good. C) Industrial Good. D) Consumer Good. Show Answer Correct Answer: D) Consumer Good. 8. Cardinal approach is related to: A) Indifference curve. B) Equi-marginal utility. C) Law of diminishing returns. D) None of these. Show Answer Correct Answer: B) Equi-marginal utility. 9. In the sum-of-the-year-digits method for depreciating assets they: A) Depreciate assets by an equal amount every year. B) Depreciate more during the first years than in the later years. C) Depreciate annually based on a decreasing weighting factor based on the economic life remaining. D) None of the answers above is correct. Show Answer Correct Answer: C) Depreciate annually based on a decreasing weighting factor based on the economic life remaining. 10. The sole national re-insurer for India is ..... A) Life Insurance Corporation. B) Star Heath Insurance. C) General Insurance Corporation. D) Oriental Insurance. Show Answer Correct Answer: C) General Insurance Corporation. 11. In the long run all firms are making A) Abnormal profit. B) Normal profit. C) Losses. D) None of above. Show Answer Correct Answer: B) Normal profit. 12. A brand new toy store opens across the street from an existing toy store. The new toy store has lower prices on some popular games. The existing toy store lowers the price of some games to match the new store prices. This is an example of: A) Competition. B) Specialization. C) Savings. D) Trade. Show Answer Correct Answer: A) Competition. 13. ..... is the extra cost of producing one more unit; ..... is found by adding fixed and variable costs. A) Marginal Cost; Additional Cost. B) Extra Cost; Added Cost. C) Total Cost; Gross Cost. D) Marginal Cost; Total Cost. Show Answer Correct Answer: D) Marginal Cost; Total Cost. 14. What is a mixed Economy A) There is no private sector. B) The free exchange of goods and services and private ownership of property. C) An economy where customs, traditions and believes prescribe the principles of economic organization for production of goods and services. D) An economy organized with some free market elements and some socialistic elements. Show Answer Correct Answer: D) An economy organized with some free market elements and some socialistic elements. 15. There are many fast food franchises that sell hamburgers. Each one has its own flagship hamburger product that distinguishes itself amongst the competition. A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: C) Monopolistic competition. 16. The art of predicting demand for products or services at some future time A) Demand Analysis. B) Demand Forecasting. C) Quantitative method. D) Qualitative method. Show Answer Correct Answer: B) Demand Forecasting. 17. The government prints more money to pay its expenses is what type of inflation? A) Cost-push inflation. B) Demand-pull inflation. Show Answer Correct Answer: B) Demand-pull inflation. 18. Choose the example that goes best with an oligopoly. A) Apples. B) Clothing. C) Cell phone providers. D) Utilities. Show Answer Correct Answer: C) Cell phone providers. 19. Single company supplies the output where the market runs efficiently (Atmos natural gas) A) Natural Monopoly. B) Monopolistic Competition. C) Proprietorship. D) Government Cooperative. Show Answer Correct Answer: A) Natural Monopoly. 20. On which approach, indifference curve analysis is based? A) Cardinal approach. B) Ordinal approach. C) Cardinal and ordinal both. D) None of the above. Show Answer Correct Answer: B) Ordinal approach. 21. Which of the following will cause wage rates to rise in a labour market? A) An increase in the supply of labour. B) An increase in the demand for labour. C) An increase in supply and a fall in demand for labour. D) A fall in the demand for labour. Show Answer Correct Answer: B) An increase in the demand for labour. 22. In a low-contact system, the customer must be a part of the system to receive the service. A) True. B) False. Show Answer Correct Answer: B) False. 23. Business economics is also known as A) Managerial Economics. B) Economics for Executives. C) Economic analysis for business decisions. D) All the above. Show Answer Correct Answer: D) All the above. 24. Microeconomics studies individuals' economic behavior. A) False. B) True. Show Answer Correct Answer: B) True. 25. Which of the following is a feature of a competitive market? A) There are a limited number of sellers in the market. B) There are high barriers to entry. C) There are lots of sellers in the market. D) Each firm has a total control over the price charged. Show Answer Correct Answer: C) There are lots of sellers in the market. 26. Total utility maximum when: A) Marginal utility is maximum. B) Marginal utility is Zero. C) Average utility is Zero. D) Average utility is maximum. Show Answer Correct Answer: B) Marginal utility is Zero. 27. Economists regard decision making as important because: A) The resources required to satisfy our unlimited wants and needs are finite, or scarce. B) It is crucial to understand how we can best allocate our scarce resources to satisfy society's unlimited wants and needs. C) Resources have alternative uses. D) All the above. Show Answer Correct Answer: D) All the above. 28. The formula for total revenue is A) P-Q. B) P/Q. C) P*Q. D) P +Q. Show Answer Correct Answer: C) P*Q. 29. Following is the only economic variable that earns revenue for the company A) Material. B) Price. C) Product. D) None of above. Show Answer Correct Answer: B) Price. 30. Which of the following is NOT a determinant of demand for diesel? A) The price of petrol. B) The price of diesel. C) The price of automobile. D) Consumer's income. Show Answer Correct Answer: A) The price of petrol. ← 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