This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which factors in the followingUsed to consider whether the production is a short or long-term production. A) Period. B) Production factors. C) Production cost. D) Product. Show Answer Correct Answer: B) Production factors. 2. Micro and macro economics are ..... of economics. A) Function. B) Scope. C) Objective. D) None of above. Show Answer Correct Answer: B) Scope. 3. Which of the following is not a central economic problem? A) What to produce?. B) For whom to produce?. C) How to produce?. D) When to produce?. Show Answer Correct Answer: D) When to produce?. 4. The central problem of any economy arises because A) Unlimited wants. B) Scarce resources having alternative uses. C) Limited wants and unlimited resources. D) Both 1 and 2. Show Answer Correct Answer: D) Both 1 and 2. 5. If variable cost is £10 per unit and fixed costs are £400, 000, what is the total cost of producing 50, 000 units? A) £900, 000. B) £4, 000, 000. C) £500, 000. D) £450, 000. Show Answer Correct Answer: A) £900, 000. 6. Which one is not a property of isoquant A) Convex. B) Downward sloping. C) Negative slope. D) Positive slope. Show Answer Correct Answer: D) Positive slope. 7. An increase in the average prices of goods and services in a country. A) Deflation. B) Inflation. C) Market price. D) Demand price. Show Answer Correct Answer: B) Inflation. 8. Which of the following actions would the Federal Reserve System take to expand monetary policy A) Increase Reserve Requirements. B) Raise the Federal Discount Rate. C) Open additional financial institutions. D) Buy securities on the open market. Show Answer Correct Answer: D) Buy securities on the open market. 9. Let's say that the latest mobile phone demand line, F-Phone brand has the flexibility to the price equal to-2.0. The amount of demand for this mobile phone will increase by 10 percent.Show that the price of this mobile phone must A) Decreased equal to 5 percent. B) Reduced less than 5 percent. C) Increased as 5 percent. D) Reduced by more than 5 percent. Show Answer Correct Answer: A) Decreased equal to 5 percent. 10. ..... defined economics as a study of mankind in the ordinary business of life A) Adam smith. B) Lionel Robbins. C) Samuelson. D) Alfred marshall. Show Answer Correct Answer: D) Alfred marshall. 11. Profit earning is basic feature of A) Business. B) Profession. C) Employment. D) None. Show Answer Correct Answer: A) Business. 12. Which factor of production is the least mobile? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: D) Land. 13. Total utility starts decreasing when ..... A) Marginal utility is positive. B) Marginal utility becomes negative. C) Marginal utility becomes zero. D) None of above. Show Answer Correct Answer: B) Marginal utility becomes negative. 14. Law of variable proportion is also called ..... A) The law of increasing returns. B) Long run production function. C) The law of diminishing returns. D) The law of constant returns. Show Answer Correct Answer: C) The law of diminishing returns. 15. What does BRICS stand for? A) Brazil, Russia, Indonesia, China, South America. B) Brazil, Russia, India, China, South Africa. C) Brazil, Russia, India, China, South America. D) Brazil, Romania, India, China, South America. Show Answer Correct Answer: B) Brazil, Russia, India, China, South Africa. 16. The amount of a product that is produced is most directly affected by A) Labor unions. B) Product utility. C) Product value. D) Consumer demand. Show Answer Correct Answer: D) Consumer demand. 17. A ..... occurs when consumers are willing to buy different amounts of a product at every price. A) Supply. B) Elasticity. C) Change in demand. D) Shortage. E) Surplus. Show Answer Correct Answer: C) Change in demand. 18. Gross Domestic Product (GDP) refers to A) The total monetary value of a country based on goods and services produced. B) The total value of all goods and services that are required for the production process. C) The total value of all goods and services produced in a business in a given period of time. D) The total value of all goods and services produced in a country in a given period of time. Show Answer Correct Answer: D) The total value of all goods and services produced in a country in a given period of time. 19. What is the behaviour of TP, when MP becomes negative? A) TP decreases. B) TP is at its maximum point. C) TP increases at diminishing rate. D) TP increases at an increasing rate. Show Answer Correct Answer: A) TP decreases. 20. Which of the following is not a subject matter of Micro-economies? A) The cost of producing a fire truck for the fire department of Delhi, India. B) The price of mangoes. C) The quantity of mangoes produced for the mangoes market. D) The national economy's annual rate of growth. Show Answer Correct Answer: D) The national economy's annual rate of growth. 21. It represents what can be produced; also known as product indifference curve. A) ISOQUANT. B) Isocost curve. C) Marginal product. D) Isoquant-isocost model. Show Answer Correct Answer: A) ISOQUANT. 22. Sustained rise in prices is known as A) Inflation. B) Deflation. C) Recession. D) Reflation. Show Answer Correct Answer: C) Recession. 23. KFC was founded by ..... A) Harland Sanders. B) Ray Kroc. C) Glen Bell. D) Tony Tan Caktiong. Show Answer Correct Answer: A) Harland Sanders. 24. This utility is created when a product or service is available when it is needed or wanted by consumers: A) Place utility. B) Time utility. C) Possession Utility. D) Form utility. Show Answer Correct Answer: B) Time utility. 25. Turbulent environments are those with high complexity, high dynamism, and low uncertainty A) True. B) False. Show Answer Correct Answer: B) False. 26. Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk? A) Cost-Based Pricing. B) Dynamic Pricing. C) Customer Value-Based Pricing. D) Competition-Based Pricing. Show Answer Correct Answer: A) Cost-Based Pricing. 27. Which of the following strategies is involved with price skimming? A) Setting a limited number of prices for certain categories or products. B) Setting an initial low price to establish a new product in the market. C) Setting an initial low price to cover new product costs and still generate a profit. D) Setting an initial high price to establish a new product in the market. E) Setting an initial high price to cover new product costs and still generate a profit. Show Answer Correct Answer: E) Setting an initial high price to cover new product costs and still generate a profit. 28. The ratio calculated as net income divided by revenue, or net profits divided by sales is known as A) Margin analysis. B) Revenue. C) Profit margin. D) Gross profit. Show Answer Correct Answer: C) Profit margin. 29. Unitary elasticity of demand is: A) Zero. B) Greater than 1. C) Less than 1. D) Equal to one. Show Answer Correct Answer: D) Equal to one. 30. Which of the following is NOT considered non-price competition? A) Location. B) Black Friday Sale. C) Physical Characteristics. D) Advertising. Show Answer Correct Answer: B) Black Friday Sale. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books