This quiz works best with JavaScript enabled. Home > Finance > Economics > Business Economics > Business Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of excess supply: A) Price = $ 700, demand = 300, supply = 500. B) Price = $ 500, demand = 500, supply = 300. C) Price = $ 600, demand = 400, supply = 400. D) Price = $ 400, demand = 600, supply = 200. Show Answer Correct Answer: A) Price = $ 700, demand = 300, supply = 500. 2. The number of times money changes hands is called A) Money Supply. B) Demand for Money. C) Money Stock. D) Velocity of Circulation of Money. Show Answer Correct Answer: D) Velocity of Circulation of Money. 3. The occupation in which people work for others and get remunerated in return is known as A) Business. B) Employement. C) Profession. D) None of them. Show Answer Correct Answer: B) Employement. 4. A production function: A) Gives the minimum level of output that can be produced from a combination of inputs. B) Gives the different levels of output that can be produced from a combination of inputs. C) Gives the maximum level of output that can be produced from a combination of inputs. D) All of the above. Show Answer Correct Answer: C) Gives the maximum level of output that can be produced from a combination of inputs. 5. What does profit analysis help the firm with? A) Determining the best pricing strategy. B) Maximizing profits by minimizing costs. C) Forecasting future demand accurately. D) Measuring and managing profits under uncertainty. Show Answer Correct Answer: D) Measuring and managing profits under uncertainty. 6. The famous book on economics "An Enquiry into the Nature and Cause of Wealth of Nation" was written by A) Adam smith. B) Robins. C) Marshal. D) Ricardo. Show Answer Correct Answer: A) Adam smith. 7. A choice between two things that cannot be had at the same time A) Opportunity cost. B) Opportunity costs are the opposite of trade offs. C) Trade offs. D) None of above. Show Answer Correct Answer: C) Trade offs. 8. The Indian money market is characterized into ..... A) Organized and Unorganized. B) Urban and Rural. C) Small and Big. D) Short-term and Long-term. Show Answer Correct Answer: A) Organized and Unorganized. 9. What is NOT a feature of modern market economies A) Lots of service jobs. B) Machine made items. C) High quality. D) Agricultural jobs are common. Show Answer Correct Answer: D) Agricultural jobs are common. 10. Who is the father of Modern economics A) Robbins. B) Ricky Ponting. C) Philip kotler. D) Adam Smith. Show Answer Correct Answer: D) Adam Smith. 11. What do external or environmental issues include? A) Operational issues within the organization. B) Factors outside the control of the management. C) The behaviour of consumers in the market. D) The relationship between inputs and output. Show Answer Correct Answer: B) Factors outside the control of the management. 12. Law of demand shows ..... relation between demand and price. A) Inverse. B) No. C) Direct. D) Positive. Show Answer Correct Answer: A) Inverse. 13. Positive statements are A) Statements in the alternative. B) Value judgements. C) Good statements. D) Verifiable or tested. Show Answer Correct Answer: D) Verifiable or tested. 14. ..... is the study of how individuals and societies satisfy their unlimited wants with limited resources A) Cost-Benefit Analysis. B) Economics. C) Scarcity. D) Opportunity Cost. Show Answer Correct Answer: B) Economics. 15. Which of the following is not a matter of micro economics? A) Producer's Behaviour. B) Market Demand. C) Monetary Policy. D) Price Determination. Show Answer Correct Answer: C) Monetary Policy. 16. Which is the meaning of the average productivity?(AP) The most accurate A) The proportion of changes of productivity combined with changes of variable factors. B) The proportion of variable factors with constant factors. C) The proportion of productivity combined with variable factors. D) The proportion of productivity combined with constant factors. Show Answer Correct Answer: C) The proportion of productivity combined with variable factors. 17. Short run marginal costs eventually increase because of the effects of: A) Increasing marginal product. B) Increasing fixed costs. C) Diminishing marginal product. D) Diseconomies of scale. Show Answer Correct Answer: C) Diminishing marginal product. 18. The best way to be a good decision-maker in a large business firm (and make some good income!) is to A) Be the CEO at the beginning of your career. B) Invest in the most stocks. C) Get an entry level position with a good education and work your way to the top. D) Never get into business but rather be a superstar musician or athlete. Show Answer Correct Answer: C) Get an entry level position with a good education and work your way to the top. 19. Products that can be physically seen and touched. A) Economics. B) Economics. C) Services. D) Goods. Show Answer Correct Answer: D) Goods. 20. Which of the following is NOT a major barrier to entry for a monopolist? A) Economies of scale. B) Control over a key input. C) Patent protection. D) Product differentiation. Show Answer Correct Answer: D) Product differentiation. 21. Economic problems arises due to A) Limited wants. B) Scare means. C) Alternative uses. D) Both B and C. Show Answer Correct Answer: D) Both B and C. 22. Which one of the following is a diseconomy of scale? A) An increase in productivity. B) An increase in bureaucracy. C) A decrease in the cost of research and development. D) A decrease in government regulation. Show Answer Correct Answer: B) An increase in bureaucracy. 23. The term "economies of scale" refers to ..... A) The average costs of production decreasing as a firm expands. B) The average costs of production rising as a firm expands. C) The average costs of production remaining the same as a firm expands. D) The average costs of production at first decreasing, then increasing, as a firm expands. Show Answer Correct Answer: A) The average costs of production decreasing as a firm expands. 24. The highest contribution to FDI in India in April 2017 if from ..... A) UK. B) USA. C) Singapore. D) Mauritius. Show Answer Correct Answer: D) Mauritius. 25. Suppose the flexibility of the demand for the price of the product C is equal to-0.7. If the price is reduced by 10%, how will the sales of C products? A) Trade C will increase by 10%. B) Trade C will be reduced by less than 10%. C) Trade C will increase by more than 10%. D) Products C will be reduced by 10%. Show Answer Correct Answer: B) Trade C will be reduced by less than 10%. 26. Which of these are only variable costs? A) -Insurance, electricity. B) -Rent, raw materials. C) Inputs, wages per hour. D) -Raw materials, loan payment. Show Answer Correct Answer: C) Inputs, wages per hour. 27. Medicine is a..... A) Necessity. B) Luxory. C) Utility. D) All of the above. Show Answer Correct Answer: A) Necessity. 28. The point of satiety is known as in law of diminishing marginal utility A) Maximum satisfaction. B) Minimum satisfaction. C) No satisfaction. D) All of the above. Show Answer Correct Answer: A) Maximum satisfaction. 29. Which of the financial statements below doesn't belong to the three main Financial Statements? A) Statement of Cashflows. B) Statement of Operations. C) Income Statement. D) Balance Sheet. Show Answer Correct Answer: B) Statement of Operations. 30. What is microeconomics A) The branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity. B) The branch of economics concerned with medium-scale economic factors, such as cryptocurrency. C) The part of economics concerned with single factors and the effects of individual decisions. D) The part of economics concerned with single factors and the effects of group decisions. Show Answer Correct Answer: C) The part of economics concerned with single factors and the effects of individual decisions. ← 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 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books