This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 10 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these is not an advantage of Sole Proprietorship A) Do not have to pay separate business income taxes. B) If someone has the idea to make a profit he or she will be able to. C) Complicated for beginners. D) Do not require co-workers. Show Answer Correct Answer: C) Complicated for beginners. 2. Robbins in his definition A) Talks of scarcity of resources. B) Preaches moral values. C) Advises neutrality in economics. D) None of the above. Show Answer Correct Answer: A) Talks of scarcity of resources. 3. Oprah Winfrey, Guy Fieri, and Steve Jobs are examples of ..... resources. A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 4. If OPEC decided to cut oil production for the coming year, what would be the MOST LIKELY effect? A) The price for substitute products would decline. B) Prices would not change. C) Oil prices would probably rise. D) Oil prices would probably decline. Show Answer Correct Answer: C) Oil prices would probably rise. 5. Which following businesses would you classify as being in the secondary sector of industry? A) A shoe manufacturer. B) A taxi operating business. C) A family run farm business. D) An oil exploration company. Show Answer Correct Answer: A) A shoe manufacturer. 6. What best describes how to use the opportunities section of the SWOT? A) Pass this on to your manager to act upon?. B) Use your strengths to help make them happen and use them to off set potential threats. C) Ignore them as they will sort themselves out. D) Recognise them but do nothing has you are not yet ready to act upon them. Show Answer Correct Answer: B) Use your strengths to help make them happen and use them to off set potential threats. 7. Resources (a.k.a. the factors of production are) A) Land and Labor. B) Land and Capital. C) Entrepreneurship. D) Land, Labor, Capital and Entrepreneurship. Show Answer Correct Answer: D) Land, Labor, Capital and Entrepreneurship. 8. Economic theories are ..... A) Hypothetical. B) Accurate. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: A) Hypothetical. 9. Marshall defines economics as A) The study of mankind in the ordinary business of life. B) The study of human behaviour as a relationship between ends and scarce resources. C) An Enquiry into the Nature and Causes of wealth of Nations. D) None of these. Show Answer Correct Answer: A) The study of mankind in the ordinary business of life. 10. Nominal GDP ..... = Real GDP A) Imports. B) Exports. C) Unemployment. D) Inflation. Show Answer Correct Answer: D) Inflation. 11. Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions? A) Partnership. B) Sole proprietorship. C) Corporation. D) Perfect competition. Show Answer Correct Answer: C) Corporation. 12. According to the circular flow model, which of the following is TRUE? A) Firms supply resources and households demand outputs. B) Households supply resources and firms supply output. C) Firms supply both the resources and output used in production. D) Households demand both resources and outputs. Show Answer Correct Answer: B) Households supply resources and firms supply output. 13. Margarine is a good substitute for ..... A) Butter. B) Cheese. C) Cheddar. D) Bread. Show Answer Correct Answer: A) Butter. 14. The quantity of a good or service that consumers are willing and able to buy at a particular price during a specific time period. A) Demand. B) Supply. C) Price. D) Production Cost. Show Answer Correct Answer: A) Demand. 15. What is not an advantage of a monopoly? A) Achieving economies of scale. B) High level of research and development. C) Producing a greater quantity at profit-maximizing level of output. D) Higher prices and lower output. Show Answer Correct Answer: D) Higher prices and lower output. 16. Disadvantages include limited life and the potential for conflict between partners A) Sole Propriotorship. B) Corporation. C) Partnership. D) Franchise. Show Answer Correct Answer: C) Partnership. 17. If a town has 60 employed workers and 15 unemployed workers, what is the town's unemployment rate? A) 33%. B) 20%. C) 15%. D) 25%. Show Answer Correct Answer: B) 20%. 18. The study of how people choose to use limited resources to satisfy their unlimited needs and wants. A) Psychology. B) Economics. C) History. D) Social studies. Show Answer Correct Answer: B) Economics. 19. Which of the following is an advantage of sole proprietorships: A) Unlimited financial power. B) Limited liability. C) Dual taxation. D) Quick decision making. Show Answer Correct Answer: D) Quick decision making. 20. Other things equal, if a good has more substitutes, its price elasticity of demand is: A) 1.larger. B) 2.smaller. C) 3.zero. D) 4.unity. Show Answer Correct Answer: A) 1.larger. 21. How is a corporation different from a sole proprietorship? A) Sole proprietorships have limited liability for the owners. B) Corporations are owned by only one person. C) Corporations can sell stock to raise money for the business. D) Sole proprietorships require a legal charter to start the business. Show Answer Correct Answer: C) Corporations can sell stock to raise money for the business. 22. Ford and Toyota sells the same products; it evident that there is a ..... A) Competition. B) Distribution. C) Alliance. D) Threats. Show Answer Correct Answer: A) Competition. 23. The phase of the business cycle where real GDP grows for two or more consecutive quarters is termed ..... A) Growth. B) Recession. C) Gross domestic product. D) Balance of payments. Show Answer Correct Answer: A) Growth. 24. Since micro economics splits up the entire economy into smaller parts for the purpose of intensive study, it is also known as A) Bulldozer method. B) Micro foundation of macro method. C) Micro-macro method. D) Slicing method. Show Answer Correct Answer: D) Slicing method. 25. The process of changing an industry from public to private ownership. A) Privatization. B) Economic change. C) Public marketing. D) Socialization. Show Answer Correct Answer: A) Privatization. 26. The main disadvantage of a ..... is that each person is fully responsible for the acts of all other persons. A) Corporation. B) Partnership. C) Franchise. D) Proprietorship. Show Answer Correct Answer: B) Partnership. 27. Which is NOT a type of specialisation? A) Location of industry. B) Large-scale production. C) Division of labour. D) Location of enterprise. Show Answer Correct Answer: D) Location of enterprise. 28. The principle that consumers tend to buy less of a good or service when its price increases, all else held equal, is called A) The law of supply. B) The law of demand. C) The law of increasing cost. D) The law of maximum satisfaction. Show Answer Correct Answer: B) The law of demand. 29. Sam loves science and wants to become a doctor but he is learning how to make clay bricks like his father and grandfather. A) Command Economy. B) Market Economy. C) Traditional Economy. D) Market Economy. Show Answer Correct Answer: C) Traditional Economy. 30. The main driver is the number and capability of competitor in the market. A) Competition of New Entrants. B) Threats of Substitutes. C) Power of Supplier. D) Power of Customer. Show Answer Correct Answer: A) Competition of New Entrants. 31. An Economy that combines elements of the command and market economies. A) Command Economy. B) Opportunity Cost. C) Mixed Economy. D) Capitalism. Show Answer Correct Answer: C) Mixed Economy. 32. How are sole proprietorships and partnerships alike? A) The businesses are owned by one person. B) Owners have limited legal liability. C) Contracts are needed to start the businesses. D) Owners have complete control of the business. Show Answer Correct Answer: D) Owners have complete control of the business. 33. Which is NOT a factor influencing decision whether to spend or to save? A) Income. B) Weather forecast. C) Personality. D) Age. Show Answer Correct Answer: B) Weather forecast. 34. Political climate, economic shifts, laws and regulations, technology, industry trends, and competition are all examples of: A) Weaknesses. B) External forces. C) Core competencies. D) External reviews. Show Answer Correct Answer: B) External forces. 35. What type of network links computers and workstations, usually within one building? A) Personal digital. B) Satellite communication. C) Local area (LAN). D) Wide area. Show Answer Correct Answer: C) Local area (LAN). 36. McDonald's and Subway are examples of a A) Joint-Venture. B) Franchise. C) Non-Profit Corporation. D) Cooperative corporation. Show Answer Correct Answer: B) Franchise. 37. Who or what answer the basic economics questions in a mixed economy? A) Individuals and Businesses. B) Custom. C) Government. D) Individuals, Businesses and Government. Show Answer Correct Answer: D) Individuals, Businesses and Government. 38. A major task of the Department of Trade and Industry is toencourage ..... exports A) SOCIAL COST. B) AGRICULTURE. C) INDUSTRIES. D) VAT. Show Answer Correct Answer: B) AGRICULTURE. 39. In which year demonetization happen? A) 28th November 2015. B) 16th October 2010. C) 8th November 2016. D) 22nd July 2011. Show Answer Correct Answer: C) 8th November 2016. 40. The company decides to open its market to foreign countries where there is a need for your product. How does this information fit into the SWOT analysis? A) It's a threat. B) It's a weakness. C) It's a strength. D) It's an opportunity. Show Answer Correct Answer: D) It's an opportunity. 41. An individual or group who buys products. A) Customer. B) Business. C) Service. D) Product. Show Answer Correct Answer: A) Customer. 42. The study of economics is primarily concerned with: A) Demonstrating that capitalistic economies are superior to socialistic economies. B) Determining the most equitable distribution of society's output. C) Keeping private businesses from losing money. D) Choices/decisions that are made due to lack of resources. Show Answer Correct Answer: D) Choices/decisions that are made due to lack of resources. 43. Which one of the following may NOT be included in a partnership agreement? A) The contributions from different partners. B) How major decisions are made. C) How workers are hired and trained. D) How the partnership may be ended. Show Answer Correct Answer: C) How workers are hired and trained. 44. At equilibrium under ordinal approach the MRS should be equal to A) Price. B) MRTS. C) Price Ratio. D) Income. Show Answer Correct Answer: C) Price Ratio. 45. A form of business organization that is authorized to act as a legal entity regardless of the number of owners. A) Partnership. B) Corporation. C) Proprietorship. D) Distributor. Show Answer Correct Answer: B) Corporation. 46. In which of the following would one person be responsible for all of the risks but also receive all of the profits? A) Corporation. B) Dual owner business. C) Propreitership. D) Partnership. Show Answer Correct Answer: C) Propreitership. 47. If new competitors can enter your market easily because the are few barriers, your ..... is high. A) Threat of substitution. B) Supplier power. C) Threat of new entry. D) Margin. Show Answer Correct Answer: C) Threat of new entry. 48. How do governments, businesses and individuals deal with having unlimited needs and wants with scarce resources? A) By making trade-offs. B) By figuring out how to satisfy every want and need. C) By focusing on wants first and then needs. D) There is literally no answer. Show Answer Correct Answer: A) By making trade-offs. 49. A joint venture is: A) Two businesses working together for a limited time. B) Two businesses joining up forever. C) Two businesses who have split stock. D) None of above. Show Answer Correct Answer: A) Two businesses working together for a limited time. 50. What is a disadvantage of a mixed economy? A) Inequities in the distribution of wealth. B) Private ownership of resources. C) Strong social networks. D) Government regulations. Show Answer Correct Answer: A) Inequities in the distribution of wealth. 51. A firm is said to be a Public Joint-Stock Company when itA. is owned by the governmentB. operates as a public corporationC. is a limited liability companyD. sells its shares to members of the public A) C. B) B. C) A. D) D. Show Answer Correct Answer: D) D. 52. What is the main idea of the section "Money Matters" ? A) Money is power. B) Money has changed over time. C) Money is a luxury. D) Everyone needs money. Show Answer Correct Answer: B) Money has changed over time. 53. One disadvantage of a corporation is ..... A) The corporation pays limited taxes. B) The corporation can sell stock to raise revenue. C) The corporation provides limited liability for its owners. D) The corporation is subject to many government regulations. Show Answer Correct Answer: D) The corporation is subject to many government regulations. 54. The Problem of 'What to Produce' covers the issue relating to- A) What goods are to be produced?. B) What quantities of goods are to be produced?. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: C) Both (1) and (2). 55. Because of the problem of scarcity, each economic system must make which of the following choices? A) How to produce?. B) What to produce?. C) For whom to produce?. D) All of these. Show Answer Correct Answer: D) All of these. 56. ..... is the list with specific quantities of one or more goods A) 1.consumer preferences. B) 2.market baskets. C) 3.consumer behavior. D) 4.none of the above. Show Answer Correct Answer: B) 2.market baskets. 57. Economics is a ..... A) Science. B) Art. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: C) Both (1) and (2). 58. What is a market? A) Where you can buy new dresses. B) Where you can text people back and fourth. C) Where you go to draw out money. D) Where buyers and sellers exchange any types of goods, services and information. Show Answer Correct Answer: D) Where buyers and sellers exchange any types of goods, services and information. 59. Which of these are examples of government revenue A) Income tax. B) Credit. C) Work for the dole. D) Pensions. Show Answer Correct Answer: A) Income tax. 60. Goods and services that are produced in our country and sold to buyers in another country are called ..... A) External purchases. B) External sales. C) Imports. D) Exports. Show Answer Correct Answer: D) Exports. ← PreviousNext →Related QuizzesEconomy QuizzesGeneral Knowledge QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books