This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not a likely disadvantage of a small firm? A) Higher costs. B) Difficulty attracting quality staff. C) Vulnerability to competition (especially from larger companies). D) Lower overall wage costs. Show Answer Correct Answer: D) Lower overall wage costs. 2. Which of the following is not a factor of production: A) Land. B) Income. C) Labour. D) Capital. Show Answer Correct Answer: B) Income. 3. An Economy in which the resources are owned and controlled by the people of the country. A) Producers. B) Mixed Economy. C) Market Economy. D) Supply. Show Answer Correct Answer: C) Market Economy. 4. A Limited liability company A) Combines the best features of a partnership and corporation. B) Is a business coming together for a limited time. C) Is a company where owners have unlimited liability. D) None of above. Show Answer Correct Answer: A) Combines the best features of a partnership and corporation. 5. In a free market economy the allocation of resources is determined by ..... A) Voting done by consumers. B) A central planning authority. C) The level of profits of firms. D) Consumer preferences. Show Answer Correct Answer: D) Consumer preferences. 6. What do we do when we invest? A) We save something. B) We borrow something. C) We spend something. D) None of above. Show Answer Correct Answer: C) We spend something. 7. What is the fundamental problem of every society? A) Labor costs. B) Scarcity. C) Economic interdependence. D) Market fluctuation. Show Answer Correct Answer: B) Scarcity. 8. Which of the following is the most common form of business organization? A) Corporation. B) Sole proprietorship. C) Franchise. D) Partnership. Show Answer Correct Answer: B) Sole proprietorship. 9. When the TU is maximum then MU is? A) Zero. B) Negative. C) Both. D) None. Show Answer Correct Answer: A) Zero. 10. List TWO arguments in favour of free trade. A) Employment, tax. B) Economy, subsidies. C) Cycle, monopoly. D) Choice, innovation. Show Answer Correct Answer: D) Choice, innovation. 11. Minority, women, and technology rates in the workforce is A) Increasing. B) Decreasing. C) Staying the same. D) Go patriots. Show Answer Correct Answer: A) Increasing. 12. The four influences on the way people work are: A) Technology, communications, outsourced labour and casualisation. B) Automation, casualisation, scarcity and outsourced labour. C) Scarcity, demand, technology and redundancy. D) None of above. Show Answer Correct Answer: A) Technology, communications, outsourced labour and casualisation. 13. Adam smith book "An Enquiry Into the Nature and Causes of Wealth of Nations" was published in A) 1576. B) 1874. C) 1776. D) 1930. Show Answer Correct Answer: C) 1776. 14. The circular flow model of a market economy shows ..... A) How many firms can support the needs of how many households. B) The interactions between households and firms in the free market. C) What inputs are required for what outputs. D) How profits are made. Show Answer Correct Answer: B) The interactions between households and firms in the free market. 15. ..... is the description of how consumers allocate income among different goods and services to maximise their well being. A) 1.theory of consumer behavior. B) 2.consumer preferences. C) 3.consumer choices. D) 4.none of the above. Show Answer Correct Answer: A) 1.theory of consumer behavior. 16. What factor of production is an entrepreneur? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: B) Enterprise. 17. Requirement that an owner is personally and fully responsible for all losses and debts of the business A) Limited liability. B) Unlimited liability. C) Principal. D) Depreciation. Show Answer Correct Answer: B) Unlimited liability. 18. In which economic system is profit incentive to innovate? A) Mixed. B) Market. C) Command. D) Traditional. Show Answer Correct Answer: B) Market. 19. What kind of business specializes in performing services for the consumers? A) Corporation. B) Service Business. C) Hybrid Business. D) Partnership. Show Answer Correct Answer: B) Service Business. 20. When demand is perfectly inelastic, an increase in price will result in: A) 1.A decrease in total revenue. B) 2.An increase in total revenue. C) 3.No change in total revenue. D) 4.A decrease in quantity demanded. Show Answer Correct Answer: B) 2.An increase in total revenue. ← PreviousNext →Related QuizzesEconomy QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books