This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 41 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following definitions of economics includes the economic concept of ' scale of preferences'? A) Wealth defintion. B) Welfare definition. C) Scarcity definition. D) None of the above. Show Answer Correct Answer: C) Scarcity definition. 2. What is the definition of the economic term Opportunity Cost? A) The value of the next best alternative that is given up due to the choice you made. B) The price you pay to purchase something. C) The benefit you gain by making a decision. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: A) The value of the next best alternative that is given up due to the choice you made. 3. In this economic system individuals and businesses own all of the resources, but government intervention attempts to protect both consumer and business interests. A) Mixed. B) Strong Command. C) Moderate Command. D) Traditional. Show Answer Correct Answer: A) Mixed. 4. Which condition is a result of open competition in a free market system? A) Government regulation. B) Higher quality goods. C) Higher prices. D) Poor customer service. Show Answer Correct Answer: B) Higher quality goods. 5. Agency that protects consumers from dangerous products. A) Environmental Protection Agency. B) Federal Trade Commission. C) Consumer Product Safety Commission (CPSC). D) None of above. Show Answer Correct Answer: C) Consumer Product Safety Commission (CPSC). 6. Which of these is not a service provided by the government? A) Australia Post. B) ABC. C) Restaurants. D) Sewerage system. Show Answer Correct Answer: C) Restaurants. 7. What should the government do to the value of £ to increase exports and economic growth? A) Increase the value of the pound (appreciation). B) Decrease the value of the pound (depreciation). C) Revaluation of the pound. D) None of the above. Show Answer Correct Answer: B) Decrease the value of the pound (depreciation). 8. The economic problem is that A) Resources are limited and wants are limited. B) Resources are unlimited and wants are limited. C) Resources are limited and wants are unlimited. D) Resources are unlimited and wants are unlimited. Show Answer Correct Answer: C) Resources are limited and wants are unlimited. 9. Which of these is not a disadvantage of Sole Proprietorship A) Unlimited liability. B) Easy raising capital. C) The small size of Sole Proprietorship. D) Limited managerial experience. Show Answer Correct Answer: B) Easy raising capital. 10. Adam smith published his masterpiece "An enquiry into the nature and causes of wealth of nation" in the year ..... A) 1776. B) 1786. C) 1756. D) 1766. Show Answer Correct Answer: A) 1776. 11. Business Economics is A) Abstract and applies the tools of Micro economics. B) Involves practical application of economic theory in budiness decision making. C) Incorporate tools from multiple disciplines. D) (b) and (c) above. Show Answer Correct Answer: D) (b) and (c) above. 12. Of the following which is NOT a "fixed" cost for a business? A) Packaging. B) Security cameras. C) Rent. D) Insurance payments. Show Answer Correct Answer: A) Packaging. 13. Distribution examines how income is divided between A) Producers and resource owners. B) Consumers and producers. C) Consumers and resource owners. D) Producers and economizers. Show Answer Correct Answer: A) Producers and resource owners. 14. How many types of economies are there? A) 3. B) 5. C) 4. D) 2. Show Answer Correct Answer: C) 4. 15. A business with the main purpose of gaining profit is called ..... A) Autonomy. B) Big Idea. C) Profitability. D) Scalability. Show Answer Correct Answer: C) Profitability. 16. A corporation that has at least four businesses, each making unrelated products, none of which is respon-sible for a majority of its sales, is called a A) Multinational. B) Horizontal corporation. C) Conglomerate. D) Vertical merger. Show Answer Correct Answer: C) Conglomerate. 17. One advantage of a ..... is that the owner can keep the profits of successful management without having to share them with other owners A) Proprietorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: A) Proprietorship. 18. Who authored the book title, " An inquiry into the nature & causes of wealth of nature." A) Robbins. B) Marshall. C) Samuelson. D) Adam Smith. Show Answer Correct Answer: D) Adam Smith. 19. Entrepreneurs take risks to start and run A) Economic resources. B) Opportunity costs. C) Factors of prduction. D) Businesses. Show Answer Correct Answer: D) Businesses. 20. Which of the following would be an expansionary fiscal policy (increasing economic growth)? A) Lowering income tax. B) Raising the value of £. C) Printing money. D) Lowering government expenditure (spending). Show Answer Correct Answer: A) Lowering income tax. ← 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