This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Supply represents ..... A) How many goods are available for purchase. B) How much of a product that the customer wants to buy. C) How much of a product or service the market has to offer. D) How much of a product or service that buyers want to sell. Show Answer Correct Answer: C) How much of a product or service the market has to offer. 2. In a freemium type business ..... A) A monthly fee is paid in order to use the service. B) Consumers are asked to donate what they can to use the service. C) Consumers can use the basics for free. D) You get all of the features for free. Show Answer Correct Answer: C) Consumers can use the basics for free. 3. Which is not an advantage of a small firm? A) Flexibility. B) A personal service can be offered. C) Better communication. D) Economies of scale. Show Answer Correct Answer: D) Economies of scale. 4. Ricardian comparative cost theory can be extended or applied to A) Intra-regional. B) Only two countries. C) Only to developed countries. D) More than two commodities. Show Answer Correct Answer: D) More than two commodities. 5. The concept of equilibrium is always explained with reference to prices A) False. B) True. Show Answer Correct Answer: A) False. 6. Which of the items below doesn't belong on the profit & loss statement? A) Principal Payment. B) Depreciation. C) Cost of Goods Sold. D) Personnel expenses. Show Answer Correct Answer: A) Principal Payment. 7. The price elasticity of demand measures ..... A) . The slope of a budget curve. B) How often the price of a good changes. C) The responsiveness of the quantity demanded to changes in price. D) How sensitive the quantity demanded is to changes in demand. Show Answer Correct Answer: C) The responsiveness of the quantity demanded to changes in price. 8. Which one of the following is a factor of production? A) Land. B) Profit. C) Wages. D) Manufacturing. Show Answer Correct Answer: A) Land. 9. Which of the following might cause supply of a good to decrease: A) Advertising. B) Sales skills. C) Inelastic demand. D) Government regulations. Show Answer Correct Answer: D) Government regulations. 10. A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of A) Normative economics. B) Descriptive Economics. C) Micro-economics. D) Macro-Economics. Show Answer Correct Answer: D) Macro-Economics. 11. Which of the following is a reason why some firms remain small? A) High tariffs on exports. B) Lack of finance. C) Low interest rates. D) Lack of unskilled labour. Show Answer Correct Answer: B) Lack of finance. 12. If the manufacturer predicts that their own prices will be reduced in the future.What will happen? A) Reduce current production. B) Increase the current production volume. C) Reduce the production volume in the future. D) The production volume does not change both the present and the future. Show Answer Correct Answer: B) Increase the current production volume. 13. A firm's supply curve is on an upward slope because ..... A) The production costs of additional units of output will rise beyond a point. B) Consumers see a positive relationship between price and quality. C) Expansion of production leads to the use of inferior inputs. D) A reduction in the price of the raw material for that product. Show Answer Correct Answer: A) The production costs of additional units of output will rise beyond a point. 14. Production refers to ..... A) Destruction of utilities. B) Creation of utilities. C) Labour. D) Exchange value. Show Answer Correct Answer: B) Creation of utilities. 15. Ricardian theory assumes perfect mobility of Labour A) Within the country. B) Between the countries. C) Both within and between the countries. D) Between states. Show Answer Correct Answer: A) Within the country. 16. A market dominated by a few large firms is called: A) Government intervention. B) Labour Market. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 17. When the quantity demanded is greater than the quantity supplied it is known as A) An opportunity cost. B) Equilibrium. C) A shortage. D) A surplus. Show Answer Correct Answer: C) A shortage. 18. When the demand curve is a rectangular hyperbola, it represents: A) Perfectly elastic demand. B) Unitary elastic demand. C) Perfectly inelastic demand. D) Relatively elastic demand. Show Answer Correct Answer: B) Unitary elastic demand. 19. Internal economies is related to. A) Marketing economies. B) Financial economies. C) Labour economies. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Business Economics is all about the application of Economic theory in business Practices? A) False. B) True. Show Answer Correct Answer: B) True. 21. Moody's is a..... A) Stock Rating Agency. B) Global Rating Agency. C) Bank Rating Agency. D) National Rating Agency. Show Answer Correct Answer: B) Global Rating Agency. 22. An oligopoly is defined as a type of market structure where ..... firms havemarket control A) Three or more. B) Many. C) One. D) Two or more. Show Answer Correct Answer: D) Two or more. 23. . Relationship between price and supply is ..... A) Positive. B) Negative. C) Direct. D) None of the above. Show Answer Correct Answer: A) Positive. 24. Few sellers is the feature of A) Monopolistic competition. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 25. The most important function of an entrepreneur is to ..... A) Bear the sense of responsibility. B) Finance. C) Innovate. D) Earn profit. Show Answer Correct Answer: C) Innovate. 26. Activity of making a profit by producing goods and services in exchange for money. A) Economics. B) Economic activity. C) Business. D) Consumers. Show Answer Correct Answer: C) Business. 27. Australia's biggest export in 2017 was ..... A) Iron ore. B) Wheat. C) Coal. D) Natural gas. Show Answer Correct Answer: A) Iron ore. 28. ..... are business costs that vary as the level of production output changes ..... are expenses that the owners of a business must incur whether they produce nothing, a little, or a lot. A) Normal costs; Necessary costs. B) Fixed costs; Normal costs. C) Variable costs; Normal costs. D) Variable costs; Fixed costs. E) Variable costs; Marginal costs. Show Answer Correct Answer: D) Variable costs; Fixed costs. 29. Micro economics does not cover A) General price level. B) Product pricing. C) Consumer behaviour. D) Factor pricing. Show Answer Correct Answer: A) General price level. 30. In which type of economy gives do consumers and producers make their choices baseon the market forces of demand and supply? A) Open economy. B) Controlled economy. C) Command economy. D) Market economy. Show Answer Correct Answer: D) Market economy. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books