This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 11 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The process of choosing which needs and wants will be satisfied. A) Economic Decision Making. B) Goods. C) Command Economy. D) Demand. Show Answer Correct Answer: A) Economic Decision Making. 2. A business partnership has ..... who share the risks and the profits. A) No more than three owners. B) Two or more owners. C) One owner. D) Five or more owners. Show Answer Correct Answer: B) Two or more owners. 3. Service (tertiary) producers ..... A) Generally produce food-products that are grown from the land or sourced from nature. B) Manufacture goods in factories. C) Provide skills, knowledge, effort and other intangible benefits. D) None of above. Show Answer Correct Answer: C) Provide skills, knowledge, effort and other intangible benefits. 4. A subsidiary is ..... A) A company that is mostly owned by another company. B) A company that is at least half-owned by a bigger company. C) A company that is combined with another company to make a conglomerate. D) A company of which less than 25% is owned by another company. Show Answer Correct Answer: B) A company that is at least half-owned by a bigger company. 5. Organization that pools funds of individual investors to buy a large number of different stocks or other financial assets are called A) 1.mutul funds. B) 2.stock market. C) 3. insurance company. D) 4.none of the above. Show Answer Correct Answer: A) 1.mutul funds. 6. Advantages of this business type are that the owner is their own boss and gets to keep all the profits. A) Partnership. B) Franchise. C) Sole Trader. D) Limited Company. Show Answer Correct Answer: C) Sole Trader. 7. Which of the following is not the subject matter of Business economics? A) Should our firm be in this business?. B) How much should be produced and at price should be kept?. C) How will the product be placed in the market?. D) How should we decrease unemployment in the economy?. Show Answer Correct Answer: D) How should we decrease unemployment in the economy?. 8. Administered prices refer to: A) Prices determined by forces of demand and supply. B) Prices determined by sellers in the market. C) Prices determined by an external authority which is usually the government. D) None of the above. Show Answer Correct Answer: C) Prices determined by an external authority which is usually the government. 9. Economist Thomas Malthus believed that ..... would limit economic progress. A) The tendency of governments to levy high tax rates. B) The inability of workers in developed nations to compete against cheap foreign labor. C) Overpopulation. D) Depletion of gold reserves. Show Answer Correct Answer: C) Overpopulation. 10. Who took over as the new Vice Chairman of Niti Aayog in September 2017? A) Rajeev Kumar. B) Raghuram Rajan. C) Arvind Panangriya. D) Rajiv Singh. Show Answer Correct Answer: A) Rajeev Kumar. 11. This is NOT part of the tertiary sector A) Education. B) Trade. C) Construction. D) Transport. Show Answer Correct Answer: C) Construction. 12. A situation where people exchange goods and services is referred to as: A) A Mixed Market Economy. B) Scarcity. C) A market. D) The Producer Rights Law. Show Answer Correct Answer: C) A market. 13. Discounts, price cutting, Advertisements, etc in capitalist economy are- A) Types of government regulation. B) Effects of consumer sovereignty. C) Method of handling competition. D) None of the above. Show Answer Correct Answer: C) Method of handling competition. 14. The ACCC stands for: A) Australian Competition & Consumer Commission. B) Australian Consumer & Competition Contracters. C) Asia Competition & Consumer Commission. D) None of above. Show Answer Correct Answer: A) Australian Competition & Consumer Commission. 15. ..... is the name of a free-market economic system in which most of the factors of production and distribution-such as land, factories, railroads, and stores-are owned by individuals. A) Marginalism. B) Socialism. C) Communism. D) Capitalism. Show Answer Correct Answer: D) Capitalism. 16. Which of the following is an advantage of the corporation as a form of business ownership: A) Less complex requirements. B) Separate owners and managers. C) Limited liability. D) High Taxes. Show Answer Correct Answer: C) Limited liability. 17. Effective efforts put to acquire something will be ..... A) Want. B) Desire. C) Need. D) Demand. Show Answer Correct Answer: A) Want. 18. Law firms and doctor's offices are examples of ..... A) Franchises. B) Partnerships. C) Sole Proprietorships. D) Corporations. Show Answer Correct Answer: B) Partnerships. 19. The THREAT section is mainly areas that: A) Can be easily removed and turned in to strengths. B) Cannot be removed or ignored and will need planning to work with or around. Are a potential risk to your development. C) Nasty things that have been said to you. D) Are areas that you threaten your safety. Show Answer Correct Answer: B) Cannot be removed or ignored and will need planning to work with or around. Are a potential risk to your development. 20. The constant rise in the general level of prices over a period of time is termed ..... A) Unemployment. B) Inflation. C) Consumption. D) Expansion. Show Answer Correct Answer: B) Inflation. 21. If a local government sets an apartment rent control price below the equilibrium, what is the MOST LIKELY outcome? A) The demand and supply will increase. B) The increased supply will create a surplus. C) The increased demand will create a shortage. D) The demand will decrease and the supply will increase. Show Answer Correct Answer: C) The increased demand will create a shortage. 22. The term used for costs that change with the number of output A) Fixed Cost. B) Variable Cost. C) Average Cost. D) Marginal Cost. Show Answer Correct Answer: B) Variable Cost. 23. No paperwork (charter or agreement) is required to start which type of business? A) Partnership. B) Sole Proprietorship. C) Corporation. D) Franchise. Show Answer Correct Answer: B) Sole Proprietorship. 24. Disadvantages of this type of business include:parent company is strict, you are limited in what you sell, and you must operate like every other franchise. A) Franchise. B) Sole Trader. C) Partnership. D) Corporation. Show Answer Correct Answer: A) Franchise. 25. A principle in which everything must work together from employee to president or from equipment to resources. A) Scalability. B) Growth. C) Sustainability. D) Systems. Show Answer Correct Answer: D) Systems. 26. Iron, minerals, coal and plants are examples of which productive resource? A) Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Land. 27. Which is NOT a feature of Wants A) Complementary. B) Competitive. C) Recur. D) Limited. Show Answer Correct Answer: D) Limited. 28. Death of owner ends the business A) Partnership. B) Sole Proprietorship. C) Corporation. D) Sole Proprietorship and Partnership. Show Answer Correct Answer: D) Sole Proprietorship and Partnership. 29. The difference between a country's exports and imports. A) Foreign debt. B) Balance of trade. C) Opportunity cost. D) Comparative advantage. Show Answer Correct Answer: B) Balance of trade. 30. What is a capitalist economy? A) An economic system in which private individuals or businesses own capital goods. B) An economy directed to basic subsistence rather then to the market. C) Type of economic system where investment, production and the allocation of capital goods take place. D) None of above. Show Answer Correct Answer: A) An economic system in which private individuals or businesses own capital goods. 31. This type of business is owned by many people called stockholders. A) Partnership. B) Sole Proprietorship. C) Corporation. D) Franchise. Show Answer Correct Answer: C) Corporation. 32. The real or imagined differences between competing products in the same industry. A) Marketing differential. B) Product differentiation. C) Oligopoly. D) Price competition. Show Answer Correct Answer: B) Product differentiation. 33. An economic system where the economic resources are privately owned by individuals rather than the government. A) Busienss. B) Scarcity. C) Capitalism. D) None of above. Show Answer Correct Answer: C) Capitalism. 34. What is the purpose of monetary policy? A) To reduce the amount of debt the government has. B) To make people pay more money on their home loans. C) To increase or lower the taxes on imported goods. D) To change the interest rates depending on the circumstances in the economy. Show Answer Correct Answer: D) To change the interest rates depending on the circumstances in the economy. 35. Till 19th century Economics was known as A) Political Economy. B) Social Economy. C) Both (1) and (2). D) Neither (1) Nor (2). Show Answer Correct Answer: A) Political Economy. 36. The goal of a company in an oligopoly industry is to A) Increase market share and profits. B) Obtain the highest price possible. C) Always follow rivals if they raise price. D) Be the market leader in innovation. Show Answer Correct Answer: A) Increase market share and profits. 37. If it costs me $ 10 to make the first 10 bowls of cereal and $ 12 to make the next 10 bowls of cereal, what is my marginal (extra) cost? A) $ 10. B) $ 100. C) $ 2. D) $ 120. Show Answer Correct Answer: C) $ 2. 38. Dan has $ 5, 000. He wants to invest his money in the type of business that has the least amount of liability. In which type of business should he invest? A) Corporation. B) Partnership. C) Proprietorship. D) None of above. Show Answer Correct Answer: A) Corporation. 39. Globalisation can be defined as ..... A) Economic transactions that are made between countries. B) The exchange of goods and services among individuals and businesses in multiple countries. C) The process of interaction and integration among people, companies, and governments worldwide. D) A change in global or regional climate patterns. Show Answer Correct Answer: C) The process of interaction and integration among people, companies, and governments worldwide. 40. GDP divided by ..... = GDP per capita A) Wealth. B) Population. C) Production. D) Income. Show Answer Correct Answer: B) Population. 41. Disadvantages include high fees, strict operating standards, little freedom, intrusive monitoring A) Sole Propriotorship. B) Partnership. C) Franchise. D) None of above. Show Answer Correct Answer: C) Franchise. 42. An example of a local monopoly is A) A big city restaurant. B) A new dentist in a big city. C) The only veterinarian in an isolated farm community. D) None of above. Show Answer Correct Answer: C) The only veterinarian in an isolated farm community. 43. A competitive market is characterized by A) A large number of sellers and buyers. B) Diverse products. C) Sellers acting together to set prices. D) Uninformed buyers and sellers. Show Answer Correct Answer: A) A large number of sellers and buyers. 44. Two factors involved in determining the value of a resource, good, or service are A) Availability and trade-offs. B) Demand and desires. C) Productivity and opportunity costs. D) Availability and demand. Show Answer Correct Answer: D) Availability and demand. 45. Which is NOT a classification of Wants A) Comforts. B) Necessities. C) Luxuries. D) Secondary. Show Answer Correct Answer: D) Secondary. 46. ..... refers to the process of selecting an appropriate alternative that will provide the most efficient means of attaining a desired end, from two or more alternative courses of action A) Problem solving. B) Managerial expertise. C) Decision making. D) Problem analyzing. Show Answer Correct Answer: C) Decision making. 47. Micro analysis deals with the A) Allocation of resources of the economy as between production of different goods and services. B) Determination of prices of goods and services. C) Behavior of individual decision makers. D) All of the above. Show Answer Correct Answer: B) Determination of prices of goods and services. 48. A major disadvantage of a ..... is the double taxation of profits. A) Proprietorship. B) Corporation. C) Partnership. D) Franchise. Show Answer Correct Answer: B) Corporation. 49. The main disadvantage of a ..... is that the owner of the business has unlimited liability. A) Corporation. B) Franchise. C) Partnership. D) Proprietorship. Show Answer Correct Answer: D) Proprietorship. 50. A target market is a group of ..... that the ..... has decided to aim its marketing efforts and ultimately its merchandise towards. A) Customer, Business. B) Companies, Research. C) Business, Customer. D) Companies, Business. Show Answer Correct Answer: A) Customer, Business. 51. Which describes an oligopoly? A) A firm that is easy to start and has little control over prices. B) A firm that is impossible to start and has total control over prices. C) A firm that is difficult to start and has some competition. D) A firm that has lots of competition and needs to compete outside of prices. Show Answer Correct Answer: C) A firm that is difficult to start and has some competition. 52. Total utility starts decreasing when ..... A) Marginal utility is positive. B) Marginal utility becomes negative. C) Marginal utility becomes zero. D) None of above. Show Answer Correct Answer: B) Marginal utility becomes negative. 53. Which of these is an example of government expenditure? A) Social Security and Benefits. B) Company tax. C) Sales tax (GST). D) Fuel excise. Show Answer Correct Answer: A) Social Security and Benefits. 54. The increased movement between nations of trade, labour, investment, finance and technology. A) Macroeconomics. B) Economic Model. C) Microeconomics. D) Globalisation. Show Answer Correct Answer: D) Globalisation. 55. Modern definition- A) Science is Wealth. B) Science of scarcity. C) Science of Material welfare. D) Science of Dynamic Growth and Development. Show Answer Correct Answer: D) Science of Dynamic Growth and Development. 56. An indifference curve is always: A) (c) L-shaped. B) (d) A vertical straight line. C) (a) Concave to the origin. D) (b) Convex to the origin. Show Answer Correct Answer: D) (b) Convex to the origin. 57. Land, labour, capital, knowledge and entrepreneurship are collectively known as A) Goods and services. B) Business cycle. C) Factors of production. D) Output. Show Answer Correct Answer: C) Factors of production. 58. The economic resources a nation uses to make goods and supply services for its population. A) Market. B) Factors of Production. C) Scarcity. D) Product. Show Answer Correct Answer: B) Factors of Production. 59. Needs and wants are ....., while our resources are ..... A) Unlimited, limited. B) Necessary, unnecessary. C) Limited, unlimited. D) Satisfied, unsatisfied. Show Answer Correct Answer: A) Unlimited, limited. 60. A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n) A) Franchise. B) General partnership. C) Corporation. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. ← 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