This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 12 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Innovation in business involves: A) Creating Music. B) Making a profit. C) Creating Art. D) Creative ways to solve problems in society. Show Answer Correct Answer: D) Creative ways to solve problems in society. 2. What was the maximum strength of full time members in the planning commission? A) 6. B) 10. C) 11. D) 8. Show Answer Correct Answer: D) 8. 3. Capital is ..... A) The money or cash on hand that a business has at their disposal. B) All the equipment used by human labour in the process of production. C) All the equipment used when to create goods and services for the consumers. D) The resources required to produce goods and services for consumers. Show Answer Correct Answer: B) All the equipment used by human labour in the process of production. 4. Who was the first Chairman of planning commission? A) J.Nehru. B) S. Radhakrishnan. C) Rajendra Prasad. D) B.R. Ambedkar. Show Answer Correct Answer: A) J.Nehru. 5. Who was the first economist who used the term ECONOMIC in the place of political economy? A) Alfred Marshall. B) Lionel Robbin. C) J.M. Keynes. D) Paul. A. Samuelson. Show Answer Correct Answer: A) Alfred Marshall. 6. The cartel model of oligopoly leads to: A) All the firms in the industry acting as one to set a monopoly price. B) Each producer acting independently of others. C) Firms following the low-price firm in the industry. D) Differences in cost of production discouraging individual firms from cheating. Show Answer Correct Answer: A) All the firms in the industry acting as one to set a monopoly price. 7. At equilibrium, the slope of the indifference curve is: A) (a) Equal to the slope of budget line. B) (b) Greater than the slope of budget line. C) (c) Smaller than the slope of budget line. D) (d) None. Show Answer Correct Answer: A) (a) Equal to the slope of budget line. 8. Micro economics deals primarily with A) Comparative statics, general equilibrium and positive economics. B) Comparative statics, partial equilibrium and normative economics. C) Dynamics, partial equilibrium and positive economics. D) Comparative statics, partial equilibrium and positive economics. Show Answer Correct Answer: D) Comparative statics, partial equilibrium and positive economics. 9. The total amount of a good or service that is available to buy is called A) Demand. B) Incentive. C) Profit. D) Supply. Show Answer Correct Answer: D) Supply. 10. Australia's biggest export in 2017 was ..... A) Coal. B) Natural gas. C) Wheat. D) Iron ore. Show Answer Correct Answer: D) Iron ore. 11. Complex and expensive to set up A) Partnership. B) Corporation. C) Sole Proprietorship. D) Corporation and Partnership. Show Answer Correct Answer: B) Corporation. 12. An industry that is dominated by a few large firms is A) A competitive market. B) A monopoly. C) An oligopoly. D) None of above. Show Answer Correct Answer: C) An oligopoly. 13. Micro economics is a study of A) General price level. B) National Output. C) Whole economy. D) Individual economic unit. Show Answer Correct Answer: D) Individual economic unit. 14. Which one of these is NOT a cause of scarcity? A) Overproduction of time. B) Not enough materials. C) Poor Distribution of Resources. D) Rapid Increase in Demand. Show Answer Correct Answer: A) Overproduction of time. 15. The process by which one or two or more persons engage in commercial activity for profit. A) Partnership. B) Trade. C) Commerce. D) Business. Show Answer Correct Answer: D) Business. 16. Taxes and subsidies are taken into account when calculatingGDP at basic prices A) Production. B) Imports. C) Commodities. D) Exports. Show Answer Correct Answer: A) Production. 17. What is economy? A) Society. B) The way a nation makes economic choices about how the nation will use its resources to produce and distribute goods and services. C) The way in which the government decides on how things will be run fairly in the nation. D) None of above. Show Answer Correct Answer: B) The way a nation makes economic choices about how the nation will use its resources to produce and distribute goods and services. 18. When supply goes up, what happens to the price? A) Price goes up. B) Price goes down. C) Price remains the same. D) None of above. Show Answer Correct Answer: B) Price goes down. 19. Elements in the environment that could cause trouble for the business are A) Weaknesses. B) Opportunities. C) Strenhts. D) Threats. Show Answer Correct Answer: D) Threats. 20. A corporation that has operations in a number ofdifferent countries A) Multinational. B) Depreciation. C) Merger. D) Net income. E) Vertical merger. Show Answer Correct Answer: A) Multinational. 21. A major disadvantage of a ..... is strict operating standards. A) Franchise. B) Partnership. C) Proprietorship. D) Corporation. Show Answer Correct Answer: A) Franchise. 22. ..... is used to show opportunity cost. A) Production Possibility Opportunity. B) Production Possibility Front/Curve. C) Production Possibility Level. D) Production Possibility Cost. Show Answer Correct Answer: B) Production Possibility Front/Curve. 23. Consumers are typically most willing to pay more for goods and services that bring them greater A) Satisfaction. B) Opportunity costs. C) Popularity. D) Trade-offs. Show Answer Correct Answer: A) Satisfaction. 24. What does the word transaction mean? A) A conversation. B) A dialogue. C) The way spends something. D) A business deal. Show Answer Correct Answer: D) A business deal. 25. Maximum amount of money that a risk averse person will pay to avoid taking a risk is called A) 1.risk premium. B) 3. risk averse. C) 2.risk neutral. D) 4.risk loving. Show Answer Correct Answer: A) 1.risk premium. 26. On which approach, indifference curve analysis is based? A) Cardinal approach. B) Ordinal approach. C) Cardinal and ordinal both. D) None of the above. Show Answer Correct Answer: B) Ordinal approach. 27. Susie is starting her own lemonade store. What economic term would best describe Susie and what does that term mean? A) Consumer-a person who uses or consumes goods. B) Partnership-partner in the lemonade stand. C) Entrepreneur person who takes a risk to start a new company. D) None of above. Show Answer Correct Answer: C) Entrepreneur person who takes a risk to start a new company. 28. Which of these is the best definition of the 'economic problem'? A) There are too many factors of production. B) The amount of something produced by a person, machine or industry. C) People do not have enough money. D) There are not enough resources to satisfy people's wants. Show Answer Correct Answer: D) There are not enough resources to satisfy people's wants. 29. Which statement is NOT true? A) Middle-aged people tend to dis-save. B) Retired people tend to dis-save. C) Young people tend to dis-save. D) People tend to save proportionately more during middle age. Show Answer Correct Answer: A) Middle-aged people tend to dis-save. 30. Another term for the Economic Problem A) Economics. B) Scarcity. C) Production. D) Finite. Show Answer Correct Answer: B) Scarcity. 31. The term "Slam " is associated with A) Cricket. B) Tennis. C) Boxing. D) Football. Show Answer Correct Answer: B) Tennis. 32. Financial organization that accepts deposits from, and makes loans to, employees of a particular company or government agency A) Credit union. B) Net income. C) Limited life. D) Inventory. Show Answer Correct Answer: A) Credit union. 33. Which of these is an example of a public good? A) McDonalds. B) Clothing. C) Houses. D) Roads. Show Answer Correct Answer: D) Roads. 34. A decrease in taxation is an example of a decision made by which sector: A) Household. B) Business. C) Government. D) Overseas. E) Financial. Show Answer Correct Answer: C) Government. 35. What are the three main forms of business in today's economic A) Sole proprietorship, the partnership, Market economy. B) Partnership, Sole Proprietorship, Corporation Economy. C) Merchandising Business, Sole proprietorship, Partnership. D) The sole proprietorship, the partnership, and the corporation. Show Answer Correct Answer: D) The sole proprietorship, the partnership, and the corporation. 36. Identify the need in this list A) Water. B) Pure Oxygen. C) Carbonated Water. D) Day Spas. Show Answer Correct Answer: A) Water. 37. In most businesses, what is the most costly factor of production? A) Entrepreneurship. B) Land Capital. C) Human Capital. D) Capital Stock. Show Answer Correct Answer: C) Human Capital. 38. Which one of these is the impact of unemployment? A) Crime rate increase. B) All of the above. C) Decrease in the country's GDP. D) Political disturbance. Show Answer Correct Answer: B) All of the above. 39. The type of economic system a country has is based on: A) Wants and needs. B) The amount of government involvement in the marketplace. C) The scarcity of resources. D) Where resources are available. Show Answer Correct Answer: B) The amount of government involvement in the marketplace. 40. This type of business is owned by many people called shareholders. A) Limited Company. B) Franchise. C) Partnership. D) Sole Trader. Show Answer Correct Answer: A) Limited Company. 41. What does "N" stands for? A) Numerical. B) Numbered. C) National. D) Nominal. Show Answer Correct Answer: C) National. 42. Interdependence refers to: A) The cyclical relationship between the savings and investment sectors of the economy. B) The dependence of workers on wages. C) The reliance that exists between all participants in the economy on each other. D) Solving unlimited needs and wants with limited resources. Show Answer Correct Answer: C) The reliance that exists between all participants in the economy on each other. 43. Economics is the study of A) How to avoid having to make trade-offs. B) How to reduce our wants until we are satisfied. C) How to fully satisfy our unlimited wants. D) How society manages its unlimited resources. Show Answer Correct Answer: C) How to fully satisfy our unlimited wants. 44. Which of the following is an economic activity? A) Boy drawing a picture. B) A man polishing shoes. C) Friends playing Chess. D) Mother scolding her children for not doing study. Show Answer Correct Answer: B) A man polishing shoes. 45. When comparing the four main types of business organisations, which protects owners the MOST from personal financial liability? A) Partnership. B) Franchise. C) Sole Trader. D) Limited Company. Show Answer Correct Answer: D) Limited Company. 46. How do you satisfy your unlimited wants in a world of limited resources? A) By stealing. B) By setting a budget. C) By making choices. D) By making more money. Show Answer Correct Answer: C) By making choices. 47. Marginal utility is a ..... Concept. A) Cardinal. B) Ordinal. C) Both. D) None. Show Answer Correct Answer: A) Cardinal. 48. Which of the following would be an expansionary monetary policy (increase in economic growth)? A) Raising wages of prison staff. B) Raising interest rates. C) Lowering interest rates. D) Lowering government spending. Show Answer Correct Answer: C) Lowering interest rates. 49. Price paid for the use of another's money A) Labor union. B) Sole proprietorship. C) Inventory. D) Interest. Show Answer Correct Answer: D) Interest. 50. The introduction of a minimum wage in a labour market will: A) Raise employment and lower the wage rate. B) Raise the wage rate and increase employment. C) Raise the wage rate and decrease employment. D) Reduce the wage rate but boost employment. Show Answer Correct Answer: C) Raise the wage rate and decrease employment. 51. ..... is the change in total revenue irrespective of changes in price or due to the effect of managerial decision on revenue A) Marginal revenue. B) Incremental revenue. C) Total revenue. D) Average revenue. Show Answer Correct Answer: B) Incremental revenue. 52. What is the fundamental role of fiscal policy? A) Controlling the budget deficit. B) Establishing automatic stabilisers. C) Reducing government regulations. D) Making revenue and expenditure decisions. Show Answer Correct Answer: D) Making revenue and expenditure decisions. 53. What is the term for the restrictions that government places on harmful products and/or services? A) Externalities. B) Exterminates. C) Externations. D) Taxes. Show Answer Correct Answer: A) Externalities. 54. Which of the following is NOT an important economic question related to scarcity that every nation must answer? A) For whom should we produce it?. B) What are the factors of production?. C) What should we produce?. D) How should we produce it?. Show Answer Correct Answer: B) What are the factors of production?. 55. What is a computer-based system that allows people to communicate simultaneously from different locations via telephone, e-mail, or video? A) Groupware. B) A data communication network. C) The Internet. D) Electronic conferencing. Show Answer Correct Answer: D) Electronic conferencing. 56. In order to save cost, the "Food Industry" should use more labor than machines." This statement refers to: A) How to produce. B) What to produce. C) How many to produce. D) Who to produce for. Show Answer Correct Answer: A) How to produce. 57. Freedom if choice is advantage of- A) Socialist economy. B) Controlled economy. C) Capitalist economy. D) None of the above. Show Answer Correct Answer: C) Capitalist economy. 58. Agency that is responsible for protecting consumers from unfair or deceptive business practices. A) Federal Trade Commission. B) Better Business Bureau (BBB). C) Consumer Product Safety Commission. D) None of above. Show Answer Correct Answer: A) Federal Trade Commission. 59. When a person who is actively searching for employment is unable to find work, this is ..... A) Unemployment. B) Consumption. C) Expansion. D) Inflation. Show Answer Correct Answer: A) Unemployment. 60. In the Circular Flow Model, leakages are ..... A) Investment, Government expenditure, Exports. B) Investment, Exports, Imports. C) Savings, Taxation, Exports. D) Savings, Taxation, Imports. Show Answer Correct Answer: D) Savings, Taxation, Imports. ← 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