This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 38 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the Circular Flow Model, leakages are ..... A) Investment, Government expenditure, Exports. B) Savings, Taxation, Imports. C) Investment, Exports, Imports. D) Savings, Taxation, Exports. Show Answer Correct Answer: B) Savings, Taxation, Imports. 2. Non-cash charge a firm takes for the general wear and tear on its capital goods A) Interest. B) Unlimited liability. C) Consumer cooperative. D) Depreciation. Show Answer Correct Answer: D) Depreciation. 3. John only had $ 40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision? A) New pair of jeans. B) $ 40. C) No opportunity cost was involved. D) Trip to amusement park. Show Answer Correct Answer: A) New pair of jeans. 4. What is Adam Smith's "invisible hand? " A) God. B) The process that turns self-directed gain into social and economic benefits. C) The controlling fist of the government. D) His wife who always supported him in his work. Show Answer Correct Answer: B) The process that turns self-directed gain into social and economic benefits. 5. Products are commonly known as A) Needs and wants. B) Goods and services. C) Factors of production. D) Functions of business. Show Answer Correct Answer: B) Goods and services. 6. Advantages of this business include:easier to get money from the bank to start, share skills and share risks. A) Sole Trader. B) Partnership. C) Limited Company. D) Franchise. Show Answer Correct Answer: B) Partnership. 7. Who is the father of modern economics? A) Adam Smith. B) Thomas Malthus. C) Donald Trump. D) None of above. Show Answer Correct Answer: A) Adam Smith. 8. South Africa benefits directly from tourism because of the increasein tourist ..... A) Benefit. B) Taxation. C) Income. D) Expenditure. Show Answer Correct Answer: D) Expenditure. 9. This is NOT part of the secondary sector A) Energy Industries. B) Construction. C) Base industries. D) Transport. Show Answer Correct Answer: D) Transport. 10. Things you can see or touch. A) Goods. B) Opportunity Cost. C) Producers. D) Needs. Show Answer Correct Answer: A) Goods. 11. Who is the person who is in charge of operating systems for gathering, organizing, and distributing information? A) Information systems manager. B) Operations manager. C) Communications manager. D) Research and development manager. E) Production manager. Show Answer Correct Answer: A) Information systems manager. 12. The customer of a service business is often called a ..... A) Customer. B) Consumer. C) Client. D) None of the above. Show Answer Correct Answer: C) Client. 13. Risk can be reduced by A) 1.diversification. B) 2.insurance. C) 3. additional information. D) 4.all of the above. Show Answer Correct Answer: D) 4.all of the above. 14. All of the following details describe the laws of supply and demand EXCEPT: A) As demand goes down, prices go down. B) As supply goes down, prices go up. C) As supply goes up, prices go down. D) As demand goes up, prices go down. Show Answer Correct Answer: D) As demand goes up, prices go down. 15. . A business which has its own identity and is distinct from the owners is called ..... A) Autonomy. B) Big Idea. C) Profitability. D) Scalability. Show Answer Correct Answer: A) Autonomy. 16. Producers and consumers determine how to use resources and make goods based on supply and demand in the market, without government interference. A) Command System. B) Traditional System. C) Market System. D) Mixed System. Show Answer Correct Answer: C) Market System. 17. In economics, capital goods include A) Buildings and equipment. B) Labor and management. C) Mental and physical work. D) Trees and water. Show Answer Correct Answer: A) Buildings and equipment. 18. Indifference curves never intersect each other due to: A) Different levels of satisfaction. B) Same levels of satisfaction. C) Convex to origin. D) Concave to origin. Show Answer Correct Answer: A) Different levels of satisfaction. 19. In which economic system is business allowed to fail and succeed based on their own merrit? A) Mixed. B) Command. C) Market. D) Traditional. Show Answer Correct Answer: C) Market. 20. Sainsbury's vows Asda will cut prices. A) Business news. B) Economic news. C) Microeconomics. D) Macroeconomics. Show Answer Correct Answer: A) Business news. ← 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