This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 44 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In economics 'Ends' refers to A) Alternative uses. B) Surplus. C) Scarcity. D) Human wants. Show Answer Correct Answer: D) Human wants. 2. There thousands of farms that sell corn to thousands of buyers A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 3. Which of the following best describes an oligopistic market? A) Many sellers with identical barriers to entry. B) Many sellers, each with a clearly differentiated product, and no barriers to entry. C) A few competing sellers with similar products and high barriers to entry. D) A few competing sellers of identical products and no barriers to entry. E) No competition among sellers and high barriers to entry. Show Answer Correct Answer: C) A few competing sellers with similar products and high barriers to entry. 4. Economic theories are ..... A) Hypothetical. B) Accurate. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: A) Hypothetical. 5. In Business economics 'ends' refers to- A) Human wants. B) Resources. C) Both (1) and (2). D) Neither (1) nor (2). Show Answer Correct Answer: A) Human wants. 6. The total demand for goods and services in an economy is known as; A) Aggregate demand. B) National demand. C) Gross national product. D) Economy-wide demand. Show Answer Correct Answer: A) Aggregate demand. 7. The law of diminishing returns applies in cases where A) There is at least one fixed factor of production. B) There is increasing scarcity of factors of production. C) The price of extra units of a factor increasing. D) Capital is a variable input. Show Answer Correct Answer: A) There is at least one fixed factor of production. 8. Government securities market is also called ..... A) Secondary Market. B) Industrial Securities Market. C) New Issue Market. D) Gilt-edged Market. Show Answer Correct Answer: D) Gilt-edged Market. 9. The more you buy of an item, the less satisfaction you receive from it. For instance, Mr. C buys Chick-Fil-A every day for 10 days. By the eighth day, he starts to not enjoy it as much ..... This is an example of ..... A) Elasticity. B) Law of demand. C) Substitution effect. D) Law of diminishing marginal utility. Show Answer Correct Answer: D) Law of diminishing marginal utility. 10. If a monopoly firm practices price discrimination the firm will ..... A) Earn smaller profit. B) Produce lower quantity than before price discrimination. C) Charge a higher price when demand is inelastic and a lower price when demand is elastic. D) Charge a higher price when demand is elastic and a lower price when demand is inelastic. Show Answer Correct Answer: C) Charge a higher price when demand is inelastic and a lower price when demand is elastic. 11. A Capitalist Economy follows the policy of: A) Let. B) Regulated markets. C) Promoting public sector. D) None of the above. Show Answer Correct Answer: A) Let. 12. Which of the following is also called broad money? A) With. B) M1. C) Mh. D) What. Show Answer Correct Answer: A) With. 13. Law of demand shows the functional relationship between ..... and quantity demanded A) Cost. B) Requirements. C) Supply. D) Price. Show Answer Correct Answer: D) Price. 14. LIC stands for..... A) Life Insurance Corporation. B) Listed Insurance Company. C) Lively Insurance Company. D) Life Insurance Center. Show Answer Correct Answer: A) Life Insurance Corporation. 15. In monopolistic competition ..... A) Allocative efficiency is reached. B) Productive efficiency is reached. C) Profit is maximized. D) All of the answers are correct. Show Answer Correct Answer: C) Profit is maximized. 16. A subsidiary is..... A) A company that is mostly owned by another company. B) A company of which less than 25% is owned by another company. C) A company that is combined with another company to make a conglomerate. D) A company that is at least half-owned by a bigger company. Show Answer Correct Answer: D) A company that is at least half-owned by a bigger company. 17. What kind of cost of production is lost, such as products A means what? A) All the costs that manufacturers need to pay for the production of products A can occur. B) The lowest cost is possible to produce products A. C) The highest income that is lost due to the use of resources to produce products A. D) All profits received from the production of products A. Show Answer Correct Answer: C) The highest income that is lost due to the use of resources to produce products A. 18. The money market is a part of the financial market which deals in borrowing and lending of ..... A) Medium-term Loans. B) Capital Transactions. C) Short-term Loans. D) Long-term Loans. Show Answer Correct Answer: C) Short-term Loans. 19. ..... is an economic system in which the government owns all the factors of production and there is little or no political freedom. A) Socialism. B) Communism. C) Capitalism. D) Centrally planned economy. Show Answer Correct Answer: B) Communism. 20. The word 'Economics' originates from the word ..... A) Peculiar. B) Economy. C) Ekconomics. D) Economic. Show Answer Correct Answer: A) Peculiar. 21. Ricardian theory assumes that A) Labour is homogeneous and of same efficiency in all the countries. B) Labour is homogeneous within the country. C) Labour differs in efficiency within the country. D) Labour is heterogeneous. Show Answer Correct Answer: B) Labour is homogeneous within the country. 22. The term mixed economy denotes ..... A) Co-existence of consumer and producer's goods industries in an economy. B) Co-existence of private and public sector in an economy. C) Co-existence of urban and reral sectors in an economy. D) Co-existence of Large and small industries in an economy. Show Answer Correct Answer: B) Co-existence of private and public sector in an economy. 23. Due to current concerns over accounting fraud, certified public accountants are now licensed by the Securities and Exchange Commission. A) False. B) Threaten. Show Answer Correct Answer: A) False. 24. True or false:a change in equity at the end of the year is the result of the net profit of a company throughout the year A) False. B) True. Show Answer Correct Answer: B) True. 25. To stimulate the economy, the government is likely to A) Restrict trade. B) Increase spending. C) Decrease expenses. D) Raise prices. Show Answer Correct Answer: B) Increase spending. 26. Which of the following statements regarding market economy is not true? A) Price plays a major role in a market economy. B) The government controls production and distribution of goods. C) Consumers choose the goods they want. D) Efficiency is achieved through the profit motive. Show Answer Correct Answer: B) The government controls production and distribution of goods. 27. Process of finding future values of demand on the basis of historical data is called? A) Demand anlaysis. B) Demand output. C) Demand forecasting. D) All of these. Show Answer Correct Answer: C) Demand forecasting. 28. The quantity of a product consumers are willing and able to buy at a given price. A) Supply. B) Competition. C) Demand. D) Scarcity. Show Answer Correct Answer: C) Demand. 29. Higher prices that result from a tax on luxury goods are likely to result in A) Fewer customers and less productivity. B) More customers and more productivity. C) Fewer customers and more productivity. D) More customers and less productivity. Show Answer Correct Answer: A) Fewer customers and less productivity. 30. What are 3 things pricing may be based on? A) Product, promotion, and service. B) Cost, Demand, and Competition. C) Cost, Demand, and Customers. D) Price, Promotion, Professionalism. Show Answer Correct Answer: B) Cost, Demand, and Competition. ← 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