This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of business allows the owner to keep all of the profit for him/herself? A) Partnership. B) Franchise. C) Sole Trader. D) Limited Company. Show Answer Correct Answer: C) Sole Trader. 2. Why are resources considered limited? A) Everyone has them, and they change. B) Entrepreneurs do not invest enough of them. C) There are so many that people must decide which ones to choose at any one time. D) There are not enough available so that everyone can have as much of them as desired. Show Answer Correct Answer: D) There are not enough available so that everyone can have as much of them as desired. 3. The difference between what a consumer is ready to pay and what he actually pays is: A) Consumer Surplus. B) Consumer deficit. C) Both. D) None. Show Answer Correct Answer: A) Consumer Surplus. 4. If a customer shops at your store because it is on his way home from work, which utility is involved A) Place. B) Form. C) Possession. D) Time. Show Answer Correct Answer: A) Place. 5. When was Niti Aayog established? A) 1 January 2015. B) 25 January 2016. C) 14 May 2014. D) 1 July 2015. Show Answer Correct Answer: A) 1 January 2015. 6. What is NOT a source of income? A) Social welfare payments. B) Profit from capital. C) Wage from labour. D) Rent from land. Show Answer Correct Answer: B) Profit from capital. 7. A target market is A) A market available at target. B) A group of people who all buy the exact same goods and services. C) A group of producers who have similar interests and therefore join in a partnership business. D) A group of customers with similar characteristics towards which a business has decided to aim its marketing efforts and its products. Show Answer Correct Answer: D) A group of customers with similar characteristics towards which a business has decided to aim its marketing efforts and its products. 8. Products and services are bought and sold at a/an ..... A) Arena. B) Black-market. C) Marketplace. D) Stalls. Show Answer Correct Answer: C) Marketplace. 9. Land, Labor, Capital, and Entrepreneurship A) Diversification. B) Deductions. C) Portfolio. D) Factors of Production. Show Answer Correct Answer: D) Factors of Production. 10. Of the three types of businesses, which one provides the most jobs? (Hint:Which one is the most common? ) A) Corporation. B) Partnership. C) Sole proprietorship. D) None of these are correct. Show Answer Correct Answer: C) Sole proprietorship. 11. For consumption to occur, goods and services must be A) Specialized. B) Improved. C) Exchanged. D) Produced. Show Answer Correct Answer: D) Produced. 12. A ..... is a semi-independent business that pays fees to a parent company. A) Proprietorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: D) Franchise. 13. 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. 14. The target rate for inflation is? A) 1-2%. B) 2-3%. C) 3-4%. D) 4-5%. Show Answer Correct Answer: B) 2-3%. 15. What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments? A) Exchange. B) Distribute. C) Produce. D) Consume. Show Answer Correct Answer: A) Exchange. 16. Exports are ..... A) Goods and services that are purchased from overseas businesses. B) Goods and services that are exported to overseas governments. C) Goods and services that are sold domestically to the household sector. D) Goods and services sold by local businesses to overseas consumers. Show Answer Correct Answer: D) Goods and services sold by local businesses to overseas consumers. 17. Law of demand shows relation between: A) 1.Income and price of commodity. B) 2.Price and quantity of a commodity. C) 3.Income and quantity demand. D) 4.Quantity demanded and quantity supplied. Show Answer Correct Answer: B) 2.Price and quantity of a commodity. 18. What is Business Studies? A) This is the study of how businesses are formed, how they grow & how the operate/managed. B) This is the study of how human beings behave as they satisfy their unlimited wants and needs. C) This is the value of the next best alternative forgone. D) None of above. Show Answer Correct Answer: A) This is the study of how businesses are formed, how they grow & how the operate/managed. 19. Labour is ..... A) The human process of manufacturing goods and services. B) The human skills and effort required in the production process. C) The human skills required to acquire raw materials. D) The human skills and effort required to manufacture goods and services. Show Answer Correct Answer: B) The human skills and effort required in the production process. 20. The type of government where the government or a central-planning committee regulates the amount, distribution, and price of everything produced. A) Command economy. B) Mixed economy. C) Market economy. D) None of above. Show Answer Correct Answer: A) Command economy. Next →Related QuizzesEconomy QuizzesBusiness Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9Business Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books