This quiz works best with JavaScript enabled. Home > Economy > Business > Business Economics – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 42 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the production possibilities curve? A) A graph that shows how much an economy can produce between 2 goods. B) How much money something is. C) The opportunity one has to give up in order to gain something else. D) Land, labor, capital, entrepreneurs. Show Answer Correct Answer: A) A graph that shows how much an economy can produce between 2 goods. 2. Which of the following are NOT capital factors of production? A) Loan from the bank. B) Stock or produce. C) Factory building. D) Factory workers. Show Answer Correct Answer: D) Factory workers. 3. Opportunity Cost is when A) The total value of your options. B) The value of something gained when you make a choice. C) The value of something given up when you make a choice of one thing over another. D) The value of your hours at work. Show Answer Correct Answer: C) The value of something given up when you make a choice of one thing over another. 4. State which of the following statement is not true. A) If the recourses were unlimited, people would be able to satisfy their wants. B) If recourse has only single use, then also economic problem would not arise. C) All countries, without exception, face problem of scarcity. D) Developed countries do not face Central Economic Problems. Show Answer Correct Answer: D) Developed countries do not face Central Economic Problems. 5. A nation's transportation, communication, and utility systems. A) Infrastructure. B) Privatization. C) Factors of production. D) Interstate commerce. Show Answer Correct Answer: A) Infrastructure. 6. What do you mean by a mixed economy? A) Modern and traditional industries. B) Public and Private sectors. C) Foreign and domestic investments. D) Commercial and subsistence farming. Show Answer Correct Answer: B) Public and Private sectors. 7. In a market economy, who has the least influence over how economic resources are allocated? A) The government. B) Consumers. C) Businesses/Producers. D) None of the above. Show Answer Correct Answer: A) The government. 8. Which market structure did the DeBeers Diamond industry fall under? A) Monopoly. B) Oligopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: A) Monopoly. 9. The GFC was caused by ..... A) Consumer confidence was low due to the war in Iraq. B) Banks and other lenders were willing to make increasingly large volumes of risky loans. C) The American government was in debt to the IMF and interest rates were increased significantly. D) Baked beans. Show Answer Correct Answer: B) Banks and other lenders were willing to make increasingly large volumes of risky loans. 10. A firm legally ceases to exist when an owner dies, quits, or sells the business A) Nonprofit organization. B) Collective bargaining. C) Credit union. D) Limited life. Show Answer Correct Answer: D) Limited life. 11. The value of the next-best alternative that you were not able to choose. A) Capitalism. B) Opportunity Cost. C) Consumer. D) Supply. Show Answer Correct Answer: B) Opportunity Cost. 12. Industry rivalry among companies of the same or related industry is called ..... A) Competition. B) Distribution. C) Alliance. D) Threats. Show Answer Correct Answer: A) Competition. 13. The term mixed economy denotes ..... A) Co-existence of consumer and producer's goods industries in an economy. B) Co-existence of private and public sector in an economy. C) Co-existence of urban and reral sectors in an economy. D) Co-existence of Large and small industries in an economy. Show Answer Correct Answer: B) Co-existence of private and public sector in an economy. 14. Costs incurred by a business when manufacturing a good or producing a service (including raw material and labor) A) Production Cost. B) Opportunity Cost. C) Trade. D) Microeconomics. Show Answer Correct Answer: A) Production Cost. 15. This type of business is owned by one person. A) Partnership. B) Sole Trader. C) Limited Company. D) Franchise. Show Answer Correct Answer: B) Sole Trader. 16. What does an entrepreneur do? A) Start and run a business. B) Take over a company. C) Develop a course. D) Work at and manage a store. Show Answer Correct Answer: A) Start and run a business. 17. The study of economic behavior of an individual firm or industry in national economy is called as ..... A) Micro Economics. B) Macro Economics. C) Business Economics. D) Behavioral Economics. Show Answer Correct Answer: A) Micro Economics. 18. The measure of the aggregate price level of intermediate products and wholesale goods A) 1. Consumer Price Index. B) 2. Product Price Index. C) 3. Producer Price Index. D) 4. Market Price Index. Show Answer Correct Answer: C) 3. Producer Price Index. 19. Which market structure involves selling identical products? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 20. Capitalism refers to A) The use of market. B) Government ownership of capital. C) Private ownership of capital goods. D) Private ownership of homes and cars. Show Answer Correct Answer: C) Private ownership of capital goods. ← 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