Business Economics Quiz 5 (20 MCQs)

Quiz Instructions

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1. The four government objectives are low inflation, low unemployment, balance of payments and

Correct Answer: B) Economic growth.

2. Which of the following is not the problem, a country will have to face due to rapid inflation

Correct Answer: C) More jobs will be created.

3. ..... demand forecasting is related to the business conditions prevailing in the economy as a whole

Correct Answer: A) Macro level.

4. The current economic system in the U.S. is .....

Correct Answer: A) Mixed (Market/Command).

5. The quantity of a good or service that producers are willing and able to offer for sale at a particular price during a specific time period.

Correct Answer: A) Supply.

6. Macro economics is derived from the Greek word

Correct Answer: C) Makros.

7. A science that examines how goods and services are produced, sold, and used.

Correct Answer: D) Economics.

8. What is microeconomics?

Correct Answer: A) Economics that looks at the behavior of people and organizations in particular markets.

9. A ..... is business owned and run by a single individual.

Correct Answer: A) Sole Proprietorship.

10. Micro economics approaches the study of economics from the view point of

Correct Answer: A) Individual or specific markets.

11. A ..... is a form of business organization recognized by law as a separate legal entity with all the rights of an individual.

Correct Answer: C) Corporation.

12. I sell 10 bowls of cereal at $ 5 each, my revenue is

Correct Answer: A) $ 50.

13. An increase in the labor force would cause the PPF to

Correct Answer: B) Shift outward.

14. Large business are usually able to negotiate lower repayments on loans. What economy of scale is this?

Correct Answer: A) Financial.

15. Who is called the father of economics?

Correct Answer: C) Adam Smith.

16. Which of these is not a major macroeconomic objective of governments?

Correct Answer: B) Increasing pofitability of companies.

17. Bulk buying for discount is which type of economy of scale?

Correct Answer: B) Purchasing.

18. ..... refers to a general rise in the price level of goods and services over time.

Correct Answer: C) Inflation.

19. Which of the following is NOT one of the 6 basic business activities

Correct Answer: D) Compete with other businesses.

20. What is a disadvantage of the economic system in the previous question?

Correct Answer: B) Lack of current technologies.