This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This factor of production are the raw materials that come from the earth. A) Human Resources. B) Natural Resources. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Natural Resources. 2. A fall in the value of a currency due to factors such as weaker economic fundamentals is termed ..... A) Exchange rate appreciation. B) Exchange rate depreciation. C) Exchange rate valuation. D) Exchange rate extrapolation. Show Answer Correct Answer: B) Exchange rate depreciation. 3. Which one of the following is correctly matched? A) Wealth of Nations-Marshall. B) Principles of Economics-Crowther. C) Ten Great Economists-J. A. Schumpeter. D) An Outline of Money-J.M. Keynes. Show Answer Correct Answer: C) Ten Great Economists-J. A. Schumpeter. 4. Which of the following is an advantage of general partnerships: A) Limited capital. B) Unlimited liability. C) Easy to end. D) Combined capabilities. Show Answer Correct Answer: D) Combined capabilities. 5. Who or what answers the basic economic questions in a market economy? A) Individuals and Businesses. B) Government. C) Customs. D) Individuals, Businesses and Government. Show Answer Correct Answer: A) Individuals and Businesses. 6. According to the article, what will you have to do when setting up a business BEFORE your very first transaction? A) Get money. B) Sell goods. C) Spend money. D) Count your money. Show Answer Correct Answer: C) Spend money. 7. Hard to raise funds to start and expand A) Sole Proprietorship and Corporation. B) Sole Proprietorship. C) Partnership and Corporation. D) Corporation. Show Answer Correct Answer: B) Sole Proprietorship. 8. What happens when demand is bigger than supply? A) Deflation. B) Surplus. C) Demand. D) Shortage. Show Answer Correct Answer: D) Shortage. 9. According to Robbins, Economics is a A) Normative science. B) Positive science. C) Natural science. D) Social science. Show Answer Correct Answer: B) Positive science. 10. Which of the following is NOT a business organization? A) Sole Proprietorship. B) Corporation. C) Perfect Competition. D) Partnership. Show Answer Correct Answer: C) Perfect Competition. 11. List any THREE examples of eco-tourism in South Africa. A) Forest. B) Economy. C) Bussiness cycle. D) None of above. Show Answer Correct Answer: A) Forest. 12. In a mixed economy A) All economic decisions are taken by the central authority. B) All economic decisions are taken by private entrepreneurs. C) Economic decisions are partly taken by the state and partly by the private entrepreneurs. D) None of the above. Show Answer Correct Answer: C) Economic decisions are partly taken by the state and partly by the private entrepreneurs. 13. Why would a company need to issue stock? A) To increase its' customer base. B) To raise money. C) To stop the government from regulating it. D) To show customers that it's successful. Show Answer Correct Answer: B) To raise money. 14. In which economic system does the government have the most control over economic resources? A) Mixed. B) Command. C) Market. D) Traditional. Show Answer Correct Answer: B) Command. 15. What is one force that hinders, or stops, economic growth in poorer countries? A) Corruption. B) The Force. C) Weather. D) Women. Show Answer Correct Answer: A) Corruption. 16. An economy where there is a blend between government involvement in business and private ownership. A) Command economy. B) Market economy. C) Mixed economy. D) None of above. Show Answer Correct Answer: C) Mixed economy. 17. Which of the following people would tend to favor a socialist economy? A) John wants to live in a country with low marginal tax rates. B) Robin wants to live in a country that encourages rapid economic growth. C) Liz wants to live in a country with limited government regulation. D) Fred prefers to live in a country that promotes social equality. Show Answer Correct Answer: D) Fred prefers to live in a country that promotes social equality. 18. Which one of the following is the correct definition of Economics? A) How the limited resources are allocated to satisfy human wants. B) How individuals, consumers and firms make economic decisions. C) How a government manages its domestic economy, and how the global economy operates. D) How a business is organised and run to achieve its corporate goals. Show Answer Correct Answer: A) How the limited resources are allocated to satisfy human wants. 19. What is the principle that producers are entitled to make more money from a business than they invest A) Profit motive. B) Free enterprise. C) Capital stock. D) Risk and reward. Show Answer Correct Answer: A) Profit motive. 20. Mark, a sole trader, has been trading for five years. A sole trader has unlimited liability. It means that he A) Works on his own. B) Can only hire a limited number of employees. C) Is personally responsible for all business debts. D) Cannot get a bank loan. Show Answer Correct Answer: C) Is personally responsible for all business debts. ← PreviousNext →Related QuizzesEconomy QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business 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