This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 39 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $ 5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is A) Staying at home. B) Both the ice cream and the movie. C) Ice cream at Dairy Queen. D) The movie. Show Answer Correct Answer: C) Ice cream at Dairy Queen. 2. The kinked demand curve explains A) Price rigidity. B) Price flexibility. C) Demand rigidity. D) Demand flexibility. Show Answer Correct Answer: A) Price rigidity. 3. Diabetic medicine's have ..... demand A) Elastic. B) Inelastic. Show Answer Correct Answer: B) Inelastic. 4. Why does scarcity exist? A) There is a limit to people's wants. B) There are not sufficient resources to meet everyone's wants. C) Each year workers tend to produce less than previously. D) Machines wear out in time. Show Answer Correct Answer: B) There are not sufficient resources to meet everyone's wants. 5. Which of the following is a barrier to entry? A) Diseconomies of scale. B) Inflation. C) High start-up costs. D) Low labour productivity. Show Answer Correct Answer: C) High start-up costs. 6. Long-term production has only variable factors.What does it mean? A) Increasing production volumeCan only increase the amount of stable factors only. B) Unable to increase the amount of productivity. C) Increasing the amount of productivityCan be done byIncrease the amount of all kinds of production factors. D) Long-term production uses factorsLess production than short-term. Show Answer Correct Answer: C) Increasing the amount of productivityCan be done byIncrease the amount of all kinds of production factors. 7. Companies with an existing distribution network are at a disadvantage in the global context. A) False. B) True. Show Answer Correct Answer: A) False. 8. A ..... is a market situation where there is only one producer who controls the supply of a good or service. A) Oligopoly. B) Monopoly. C) Competition. D) GDP. Show Answer Correct Answer: B) Monopoly. 9. When customers buy the exact amount of goods that producers are selling at a specific price, the ..... price exists. A) Equilibrium. B) Production. C) Market. D) Unit. Show Answer Correct Answer: A) Equilibrium. 10. In a competitive economy the uncrowned king is A) Consumer. B) Government. C) Seller. D) Producer. Show Answer Correct Answer: A) Consumer. 11. Who gave the scarcity definition of economics A) Lionel Robbins. B) Karl Marx. C) Alfred Marshall. D) Aristotle. Show Answer Correct Answer: A) Lionel Robbins. 12. Tariffs and quotas adopted under industrial policy was to ..... A) Increase export. B) Make exported goods cheaper. C) Increase foreign competition. D) Restrict imports and protect domestic firms from foreign competition. Show Answer Correct Answer: D) Restrict imports and protect domestic firms from foreign competition. 13. Recently ..... has taken over the responsibility directing / monitoring proposal which require government approval. A) Dip. B) Foreign Exchange Banks. C) GOI. D) RBI. Show Answer Correct Answer: A) Dip. 14. Enterprise resource planning (ERP) may allow a firm to check on the status of any customer order for specific products. A) False. B) True. Show Answer Correct Answer: B) True. 15. The economic activity in which specialized knowledge is required A) Business. B) Profession. C) Employement. D) None of them. Show Answer Correct Answer: B) Profession. 16. Mass-customization tends to reduce the volume in which companies produce. A) True. B) False. Show Answer Correct Answer: B) False. 17. Which one of the following statements is not a characteristic of monopolistic competition? A) A homogenous product. B) Ease of entry into the industry. C) A relatively large number of sellers. D) Product differentiation. Show Answer Correct Answer: A) A homogenous product. 18. Micro and macro are not two independent approaches to economic analysis but they are complementary to each other. A) PARTLY TRUE. B) True. C) False. D) PARTLY FALSE. Show Answer Correct Answer: B) True. 19. Pepsi and coco cola have following demand A) Direct demand. B) Joint demand. C) Cross Demand. D) Derived demand. Show Answer Correct Answer: C) Cross Demand. 20. Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being sold as an effective refrigerator deodorizer. This is an example of ..... innovation. A) Associative. B) Distributed. C) Positioning. D) Process. Show Answer Correct Answer: C) Positioning. 21. Economics is the study of how people seek to satisfy their needs and wants by making choices. A) True. B) False. Show Answer Correct Answer: A) True. 22. Under the cross elasticity of demand between two complimentary products A) If the price of one product increase, the demand for other product will increases. B) If the price of one product decrease, the demand for other product will decreases. C) If the price of one product decreases, the demand for other product will increases. D) None of the above. Show Answer Correct Answer: C) If the price of one product decreases, the demand for other product will increases. 23. Increase in prices due to increase in population is called A) Demand-pull inflation. B) Cost-push inflation. C) Cost-pull inflation. D) Demand-push inflation. Show Answer Correct Answer: A) Demand-pull inflation. 24. The organized sector of money market is directly under purview of ..... A) Government. B) SEBI. C) RBI. D) FICCI. Show Answer Correct Answer: C) RBI. 25. In terms of demand analysis, an income effect of a price change means A) Change in the income of the consumer. B) Change in the income of the supplier. C) Change in the real income of the consumer. D) All of the above. Show Answer Correct Answer: C) Change in the real income of the consumer. 26. ..... are benefits offered to encourage people to act in certain ways. A) Services. B) Bonuses. C) Utilities. D) Incentives. Show Answer Correct Answer: D) Incentives. 27. Internal economies of scale affect costs how? A) Falling total costs. B) Rising average costs. C) Rising variable costs. D) Falling average costs. Show Answer Correct Answer: D) Falling average costs. 28. What does market structure analysis provide information about? A) The nature and extent of competition. B) The behaviour of consumers in the market. C) The relationship between inputs and output. D) The best course of action for resource allocation. Show Answer Correct Answer: A) The nature and extent of competition. 29. Which one is in accordance with the rules of demand? A) Higher mobile prices increased the amount of mobile phones. B) The computer price decreases, causing the demand for computers to decrease. C) The rambutan price decreases, causing the amount of demand to increase. D) The price of pork increases makes the amount of demand to buy more chicken meat. Show Answer Correct Answer: C) The rambutan price decreases, causing the amount of demand to increase. 30. Which of the following is NOT one of the types of Economic Systems? A) Command Economy. B) Traditional Economy. C) Market Economy. D) Mixed Economy. E) Combined Economy. Show Answer Correct Answer: E) Combined Economy. ← 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