This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Goods and services are produced using ..... A) Needs. B) Wants. C) Economic Problem. D) Economic Resources. Show Answer Correct Answer: D) Economic Resources. 2. Oil, water, and wood are examples of ..... resources. A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: A) Land. 3. The result of merging companies that produce unrelated goods and services A) Horizontal merger. B) Conglomerate. C) Depreciation. D) Multinational. E) Vertical merger. Show Answer Correct Answer: B) Conglomerate. 4. Under capitalist economies, the answer to the fundamental questions-what, how and for whom to produce are obtained by- A) Government regulation. B) Cost benefit analysis. C) Market forces of demand and supply. D) All of the above. Show Answer Correct Answer: C) Market forces of demand and supply. 5. What is the focus of Microeconomics? A) How businesses make decisions. B) How government manages the economy. C) How individual consumers and firms make economic decisions. D) None of above. Show Answer Correct Answer: C) How individual consumers and firms make economic decisions. 6. What does the scarcity of resource implies ..... A) We must develop way to decrease our individual wants. B) Not all wants can be satisfied. C) Resources can not satisfy any want. D) Resources are very scarce and shall not be used at all. Show Answer Correct Answer: B) Not all wants can be satisfied. 7. Labour intensive technique would get chosen in ..... A) Capital surplus economy. B) Labour surplus economy. C) Developed economy. D) Developing economy. Show Answer Correct Answer: B) Labour surplus economy. 8. Capitalist economy is also known as- A) Controlled market economy. B) Free market economy. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: B) Free market economy. 9. Voluntary association that buys bulk amounts of goods on behalf of its members A) Unlimited liability. B) Depreciation. C) Partnership. D) Consumer cooperative. Show Answer Correct Answer: D) Consumer cooperative. 10. Indifference curves between income and leisure for an individual are generally: A) Concave to the origin. B) Convex to the origin. C) Negatively sloped straight lines. D) Positively sloped straight lines. Show Answer Correct Answer: D) Positively sloped straight lines. 11. Economies of scale are those that A) Result from changes in production techniques. B) Increase due to the growth of the industry as a whole. C) Generate lower per unit production costs. D) Reduce production costs in the short run. Show Answer Correct Answer: C) Generate lower per unit production costs. 12. The value of one nation's currency versus the currency of another nation is called ..... A) Growth. B) Recession. C) Balance of payments. D) Exchange rate. Show Answer Correct Answer: D) Exchange rate. 13. Is time an investment? A) Undecided. B) Yes. C) No. D) None of above. Show Answer Correct Answer: B) Yes. 14. Which economic system is based on customs and beliefs? A) Traditional System. B) Market System. C) Mixed System. D) Command System. Show Answer Correct Answer: A) Traditional System. 15. Deflation is defined as a decline in the ..... A) Price of certain products. B) General price level.. C) Gross domestic product. D) Innovation. Show Answer Correct Answer: B) General price level.. 16. Economics is "On the one side, a study of wealth; and on the other, and more important side, part of a study of man" . This is stated by A) Adam Smith. B) Alfred Marshall. C) Robbins. D) Samuelson. Show Answer Correct Answer: B) Alfred Marshall. 17. Sole proprietorship can best be defined as ..... A) A business owned and run by a single individual. B) Business organization recognized by law as separate legal entity with all the rights of an individual. C) Two individuals owning stock. D) Stockholders joined under contract. Show Answer Correct Answer: A) A business owned and run by a single individual. 18. Horizontal mergers involve A) Two or more firms in different countries. B) Two or more firms that produce the same kind of product. C) Two or more firms involved in different steps of manufacturing or marketing. D) Two or more firms that produce different products. Show Answer Correct Answer: B) Two or more firms that produce the same kind of product. 19. Is the price that equates quantity supplied to the quantity demanded A) 1.equilibrium price. B) 2.surplus. C) 3.shortage. D) 4. none of the above. Show Answer Correct Answer: A) 1.equilibrium price. 20. Parastatals are business entities of a ..... sector. A) Commercial. B) Private. C) Public. D) Sector. Show Answer Correct Answer: B) Private. ← PreviousNext →Related QuizzesEconomy QuizzesBusiness Economics Quiz 1Business 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