This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How do supply and demand influence market price? A) Supply determines market price because the seller sets the price. B) The price is determined by the highest price consumers are willing to pay. C) The price is determined by the lowest price producers are willing to accept. D) The market clearing price is where quantity demanded is equal to quantity supplied. Show Answer Correct Answer: D) The market clearing price is where quantity demanded is equal to quantity supplied. 2. A form of business organization with two or more owners who share the risks and the profits- A) Proprietorship. B) Corporation. C) Wholesale. D) Partnership. Show Answer Correct Answer: D) Partnership. 3. Which form of business is the easiest for beginners? A) Partnership. B) Corporation. C) Sole Proprietorship. D) Merchandising. Show Answer Correct Answer: C) Sole Proprietorship. 4. What occurs when people rely on others to provide the goods and services required for supporting their lives or for convenience? A) Economic Interdependence. B) Transnational Corporations (TNCs). C) Globalisation. D) Corporate Social Responsibility. Show Answer Correct Answer: A) Economic Interdependence. 5. What of the following is a feature of a monopoly? A) There is plenty of competition. B) Price is set freely by the consumers. C) The product sold is unique. D) There are very few barriers to entry. Show Answer Correct Answer: C) The product sold is unique. 6. Which of the following does not suggest a macro approach for India? A) Determining the GNP of India. B) Finding the causes of failure of ABC Ltd. C) Identifying the causes of inflation in India. D) Analyse the causes of failure of industry in providing large scale employment. Show Answer Correct Answer: B) Finding the causes of failure of ABC Ltd. 7. For which of the following type of business, do you think a sole proprietorship form of organisation would be more suitable? A) Legal consultancy. B) Grocery store. C) Internet cafe. D) None of above. Show Answer Correct Answer: B) Grocery store. 8. In economics, the value of the next best alternative is called ..... A) Scarcity. B) Productivity. C) Opprotunity Cost. D) Supply and Demand. Show Answer Correct Answer: C) Opprotunity Cost. 9. Advantages of this type of business include:selling shares to raise money, limited liability. A) Sole Trader. B) Partnership. C) Limited Company. D) Franchise. Show Answer Correct Answer: C) Limited Company. 10. Rational decison making requires that: A) One's choices be arrived at logically and without error. B) One's choices be consistent with one's goals. C) One's choices never vary. D) One make choices that do not involve trade-offs. Show Answer Correct Answer: B) One's choices be consistent with one's goals. 11. Income tax is a A) Direct tax. B) Voluntary tax. C) Indirect tax. D) Sales tax. Show Answer Correct Answer: A) Direct tax. 12. Where a business is able to buy new technology and machinery due to it being large A) Technical. B) Managerial. C) Purchasing. D) Marketing. Show Answer Correct Answer: A) Technical. 13. Which one of the following is NOT a supply side policy? A) The government increasing competition in all industries. B) The government reducing import controls. C) The government investing in training and education. D) The government privatising national industries. Show Answer Correct Answer: B) The government reducing import controls. 14. A strategy that businesses often use marketing and some ads are against the competitors. A) Advertising. B) Cost leadership. C) Alliance. D) Defensive strategy. Show Answer Correct Answer: A) Advertising. 15. Which of these is not an advantage of Sole Proprietorship A) If someone has the idea to make a profit he or she will be able to. B) Complicated for beginners. C) Do not require co-workers. D) Do not have to pay separate business income taxes. Show Answer Correct Answer: B) Complicated for beginners. 16. Robbins in his definition A) Talks of scarcity of resources. B) Preaches moral values. C) Advises neutrality in economics. D) None of the above. Show Answer Correct Answer: A) Talks of scarcity of resources. 17. Oprah Winfrey, Guy Fieri, and Steve Jobs are examples of ..... resources. A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 18. If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect? A) Prices would not change. B) Oil prices would probably rise. C) Oil prices would probably decline. D) The price for substitute products would decline. Show Answer Correct Answer: B) Oil prices would probably rise. 19. Which following businesses would you classify as being in the secondary sector of industry? A) An oil exploration company. B) A family run farm business. C) A taxi operating business. D) A shoe manufacturer. Show Answer Correct Answer: D) A shoe manufacturer. 20. What best describes how to use the opportunities section of the SWOT? A) Pass this on to your manager to act upon?. B) Use your strengths to help make them happen and use them to off set potential threats. C) Ignore them as they will sort themselves out. D) Recognise them but do nothing has you are not yet ready to act upon them. Show Answer Correct Answer: B) Use your strengths to help make them happen and use them to off set potential threats. ← 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