This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 14 (41 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the definition of the economic term Opportunity Cost? A) The benefit you gain by making a decision. B) The price you pay to purchase something. C) The value of the next best alternative that is given up due to the choice you made. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: C) The value of the next best alternative that is given up due to the choice you made. 2. In this economic system individuals and businesses own all of the resources, but government intervention attempts to protect both consumer and business interests. A) Mixed. B) Strong Command. C) Moderate Command. D) Traditional. Show Answer Correct Answer: A) Mixed. 3. Which condition is a result of open competition in a free market system? A) Higher quality goods. B) Government regulation. C) Poor customer service. D) Higher prices. Show Answer Correct Answer: A) Higher quality goods. 4. Agency that protects consumers from dangerous products. A) Environmental Protection Agency. B) Federal Trade Commission. C) Consumer Product Safety Commission (CPSC). D) None of above. Show Answer Correct Answer: C) Consumer Product Safety Commission (CPSC). 5. Which of these is not a service provided by the government? A) Sewerage system. B) Restaurants. C) ABC. D) Australia Post. Show Answer Correct Answer: B) Restaurants. 6. What should the government do to the value of £ to increase exports and economic growth? A) Increase the value of the pound (appreciation). B) Decrease the value of the pound (depreciation). C) Revaluation of the pound. D) None of the above. Show Answer Correct Answer: B) Decrease the value of the pound (depreciation). 7. The economic problem is that A) Resources are limited and wants are limited. B) Resources are unlimited and wants are limited. C) Resources are limited and wants are unlimited. D) Resources are unlimited and wants are unlimited. Show Answer Correct Answer: C) Resources are limited and wants are unlimited. 8. Which of these is not a disadvantage of Sole Proprietorship A) Unlimited liability. B) Easy raising capital. C) The small size of Sole Proprietorship. D) Limited managerial experience. Show Answer Correct Answer: B) Easy raising capital. 9. Adam smith published his masterpiece "An enquiry into the nature and causes of wealth of nation" in the year ..... A) 1776. B) 1766. C) 1756. D) 1786. Show Answer Correct Answer: A) 1776. 10. Business Economics is A) Abstract and applies the tools of Micro economics. B) Involves practical application of economic theory in budiness decision making. C) Incorporate tools from multiple disciplines. D) (b) and (c) above. Show Answer Correct Answer: D) (b) and (c) above. 11. Of the following which is NOT a "fixed" cost for a business? A) Rent. B) Packaging. C) Insurance payments. D) Security cameras. Show Answer Correct Answer: B) Packaging. 12. Distribution examines how income is divided between A) Producers and resource owners. B) Consumers and producers. C) Consumers and resource owners. D) Producers and economizers. Show Answer Correct Answer: A) Producers and resource owners. 13. How many types of economies are there? A) 3. B) 4. C) 2. D) 5. Show Answer Correct Answer: B) 4. 14. A business with the main purpose of gaining profit is called ..... A) Big Idea. B) Profitability. C) Scalability. D) Autonomy. Show Answer Correct Answer: B) Profitability. 15. A corporation that has at least four businesses, each making unrelated products, none of which is respon-sible for a majority of its sales, is called a A) Conglomerate. B) Horizontal corporation. C) Multinational. D) Vertical merger. Show Answer Correct Answer: A) Conglomerate. 16. One advantage of a ..... is that the owner can keep the profits of successful management without having to share them with other owners A) Proprietorship. B) Partnership. C) Franchise. D) Corporation. Show Answer Correct Answer: A) Proprietorship. 17. Who authored the book title, " An inquiry into the nature & causes of wealth of nature." A) Robbins. B) Marshall. C) Samuelson. D) Adam Smith. Show Answer Correct Answer: D) Adam Smith. 18. Entrepreneurs take risks to start and run A) Factors of prduction. B) Economic resources. C) Opportunity costs. D) Businesses. Show Answer Correct Answer: D) Businesses. 19. Which of the following would be an expansionary fiscal policy (increasing economic growth)? A) Raising the value of £. B) Printing money. C) Lowering government expenditure (spending). D) Lowering income tax. Show Answer Correct Answer: D) Lowering income tax. 20. What is the production possibilities curve? A) A graph that shows how much an economy can produce between 2 goods. B) How much money something is. C) The opportunity one has to give up in order to gain something else. D) Land, labor, capital, entrepreneurs. Show Answer Correct Answer: A) A graph that shows how much an economy can produce between 2 goods. 21. Which of the following are NOT capital factors of production? A) Factory workers. B) Factory building. C) Stock or produce. D) Loan from the bank. Show Answer Correct Answer: A) Factory workers. 22. Opportunity Cost is when A) The value of your hours at work. B) The value of something given up when you make a choice of one thing over another. C) The total value of your options. D) The value of something gained when you make a choice. Show Answer Correct Answer: B) The value of something given up when you make a choice of one thing over another. 23. State which of the following statement is not true. A) If the recourses were unlimited, people would be able to satisfy their wants. B) If recourse has only single use, then also economic problem would not arise. C) All countries, without exception, face problem of scarcity. D) Developed countries do not face Central Economic Problems. Show Answer Correct Answer: D) Developed countries do not face Central Economic Problems. 24. A nation's transportation, communication, and utility systems. A) Factors of production. B) Interstate commerce. C) Infrastructure. D) Privatization. Show Answer Correct Answer: C) Infrastructure. 25. What do you mean by a mixed economy? A) Modern and traditional industries. B) Public and Private sectors. C) Foreign and domestic investments. D) Commercial and subsistence farming. Show Answer Correct Answer: B) Public and Private sectors. 26. In a market economy, who has the least influence over how economic resources are allocated? A) The government. B) Consumers. C) Businesses/Producers. D) None of the above. Show Answer Correct Answer: A) The government. 27. Which market structure did the DeBeers Diamond industry fall under? A) Oligopoly. B) Perfect Competition. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: C) Monopoly. 28. The GFC was caused by ..... A) Consumer confidence was low due to the war in Iraq. B) Banks and other lenders were willing to make increasingly large volumes of risky loans. C) The American government was in debt to the IMF and interest rates were increased significantly. D) Baked beans. Show Answer Correct Answer: B) Banks and other lenders were willing to make increasingly large volumes of risky loans. 29. A firm legally ceases to exist when an owner dies, quits, or sells the business A) Collective bargaining. B) Limited life. C) Nonprofit organization. D) Credit union. Show Answer Correct Answer: B) Limited life. 30. The value of the next-best alternative that you were not able to choose. A) Opportunity Cost. B) Supply. C) Consumer. D) Capitalism. Show Answer Correct Answer: A) Opportunity Cost. 31. Industry rivalry among companies of the same or related industry is called ..... A) Competition. B) Distribution. C) Alliance. D) Threats. Show Answer Correct Answer: A) Competition. 32. The term mixed economy denotes ..... A) Co-existence of consumer and producer's goods industries in an economy. B) Co-existence of private and public sector in an economy. C) Co-existence of urban and reral sectors in an economy. D) Co-existence of Large and small industries in an economy. Show Answer Correct Answer: B) Co-existence of private and public sector in an economy. 33. Costs incurred by a business when manufacturing a good or producing a service (including raw material and labor) A) Trade. B) Opportunity Cost. C) Production Cost. D) Microeconomics. Show Answer Correct Answer: C) Production Cost. 34. This type of business is owned by one person. A) Franchise. B) Limited Company. C) Sole Trader. D) Partnership. Show Answer Correct Answer: C) Sole Trader. 35. What does an entrepreneur do? A) Start and run a business. B) Take over a company. C) Develop a course. D) Work at and manage a store. Show Answer Correct Answer: A) Start and run a business. 36. The study of economic behavior of an individual firm or industry in national economy is called as ..... A) Behavioral Economics. B) Business Economics. C) Micro Economics. D) Macro Economics. Show Answer Correct Answer: C) Micro Economics. 37. The measure of the aggregate price level of intermediate products and wholesale goods A) 4. Market Price Index. B) 1. Consumer Price Index. C) 2. Product Price Index. D) 3. Producer Price Index. Show Answer Correct Answer: D) 3. Producer Price Index. 38. Which market structure involves selling identical products? A) Oligopoly. B) Monopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: C) Perfect Competition. 39. Capitalism refers to A) The use of market. B) Government ownership of capital. C) Private ownership of capital goods. D) Private ownership of homes and cars. Show Answer Correct Answer: C) Private ownership of capital goods. 40. TERM 3 TOPIC IN GR 11 A) MONOPOLY. B) OLIGOPOLY. C) MONEY. D) FOREIGN SECTOR. Show Answer Correct Answer: D) FOREIGN SECTOR. 41. The amount by which the quantity demanded changes in relation to a change in price. A) Price elasticity of income. B) Demand. C) Supply. D) Price elasticity of demand. Show Answer Correct Answer: D) Price elasticity of demand. ← PreviousRelated 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