Business Economics Quiz 7 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. In Economics, we use the term scarcity to mean;

Correct Answer: B) Relative scarcity i.e. scarcity in relation to the wants of the society.

2. Australia's biggest trading partner is .....

Correct Answer: D) China.

3. Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is

Correct Answer: B) Economizing.

4. High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of-

Correct Answer: A) Recession.

5. Define productivity

Correct Answer: A) Amount of g/s produced per unit of resources.

6. Sum of net income and non-cash charges, such as depreciation

Correct Answer: C) Cash flow.

7. ..... curve represents all combinations of market baskets that provide consumer with the same level of satisfaction.

Correct Answer: B) 2.indefference curve.

8. The quantity of a good or service that consumers are willing and able to buy.

Correct Answer: C) Demand.

9. What is the purpose of government taxes?

Correct Answer: B) Provide money for public goods and services.

10. The expansion of micro economics into other social sciences has caused economics to be called as the

Correct Answer: A) Imperialist social science.

11. The word 'Economics' has the ..... origin

Correct Answer: C) Greek.

12. List any THREE methods that can be used to promote importsubstitution.

Correct Answer: D) Subsidies.

13. What are Wants?

Correct Answer: B) These are goods and services which human beings desire but can live without.

14. You are conducting a SWOT analysis and find out that a new competitor is opening within 5 miles of your store. This would be considered a .....

Correct Answer: D) Threat.

15. What is a subsistence economy?

Correct Answer: A) An economy directed to basic subsistence rather then to the market.

16. Disadvantages of this type of business include:company is taxed on profits, regulated by the government, and hard to start.

Correct Answer: C) Corporation.

17. What is the abbreviation for PPC?

Correct Answer: B) Production Possibility Curve.

18. Where do people buy most goods?

Correct Answer: B) Stores.

19. The method a country uses to answer the three Economic questions.

Correct Answer: D) Economic System.

20. What is the main role of government intervention in the economy?

Correct Answer: B) To protect the workforce and the environment and to promote competition.