This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 3 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Michelle is trying to decide which goods and services to purchase so that she can get maximum satisfaction. Michelle is A) Creating scarcity. B) Economizing. C) A producer. D) Increasing distribution. Show Answer Correct Answer: B) Economizing. 2. High levels of unemployment combined with high levels of inflation could indicate that the business cycle has entered into a period of- A) Stagflation. B) Expansion. C) Recession. D) Investment. Show Answer Correct Answer: C) Recession. 3. Define productivity A) Increase in quantity of g/s produced. B) Amount of g/s produced per unit of resources. C) Total amount of g/s produced. D) Cost of g/s produced. Show Answer Correct Answer: B) Amount of g/s produced per unit of resources. 4. Sum of net income and non-cash charges, such as depreciation A) Net income. B) Cash flow. C) Corporation. D) Limited life. Show Answer Correct Answer: B) Cash flow. 5. ..... curve represents all combinations of market baskets that provide consumer with the same level of satisfaction. A) 1.demand curve. B) 2.indefference curve. C) 3.supply curve. D) 4.none of the above. Show Answer Correct Answer: B) 2.indefference curve. 6. The quantity of a good or service that consumers are willing and able to buy. A) Economic System. B) Market Price. C) Demand. D) Needs. Show Answer Correct Answer: C) Demand. 7. What is the purpose of government taxes? A) Fund the income of politicians. B) Provide money for public goods and services. C) Provide money for public performances. D) Supplement big businesses. Show Answer Correct Answer: B) Provide money for public goods and services. 8. The expansion of micro economics into other social sciences has caused economics to be called as the A) Queen of social science. B) Traditional social science. C) Inter disciplinary social science. D) Imperialist social science. Show Answer Correct Answer: D) Imperialist social science. 9. The word 'Economics' has the ..... origin A) Greek. B) French. C) Roman. D) European. Show Answer Correct Answer: A) Greek. 10. List any THREE methods that can be used to promote importsubstitution. A) Market price. B) Gdp. C) Economy. D) Subsidies. Show Answer Correct Answer: D) Subsidies. 11. 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 ..... A) Opportunity. B) Threat. C) Weakness. D) Strength. Show Answer Correct Answer: B) Threat. 12. What is a subsistence economy? A) An economy directed to basic subsistence rather then to the market. B) Type of economic system where investment, production and the allocation of capital goods take place. C) An economic system in which private individuals or businesses own capital goods. D) None of above. Show Answer Correct Answer: A) An economy directed to basic subsistence rather then to the market. 13. Disadvantages of this type of business include:company is taxed on profits, regulated by the government, and hard to start. A) Corporation. B) Sole Proprietorship. C) Franchise. D) Partnership. Show Answer Correct Answer: A) Corporation. 14. What is the abbreviation for PPC? A) Production Possibility Curve. B) Possibility Production Curve. C) Possibility Production Frontier. D) Production Possible Choice. Show Answer Correct Answer: A) Production Possibility Curve. 15. Where do people buy most goods? A) Factories. B) Trucks. C) Stores. D) Farms. Show Answer Correct Answer: C) Stores. 16. The method a country uses to answer the three Economic questions. A) Supply. B) Goods. C) Economic System. D) Needs. Show Answer Correct Answer: C) Economic System. 17. What is the main role of government intervention in the economy? A) To discourage enterprise and reduce foreign investment. B) To protect the workforce and the environment and to promote competition. C) To ensure that business is conducted in such a way that local businesses always win. D) To prevent consumers from accessing what the economy produces. Show Answer Correct Answer: B) To protect the workforce and the environment and to promote competition. 18. Anything that is bought or sold is called a(n) ..... A) Product. B) Service. C) Item. D) Business. Show Answer Correct Answer: A) Product. 19. Macro Economics deals with A) External value of money. B) Employment and economic growth. C) General price level. D) All of above. Show Answer Correct Answer: D) All of above. 20. Which one of the following best defines the term stakeholder? A) Any individual who takes decisions within a business. B) An owner of a private limited company. C) An individual who is a part owner in a business. D) Someone with an interest in the success of a business. Show Answer Correct Answer: D) Someone with an interest in the success of a business. 21. A nonprofit agency sponsored by local businesses that helps to resolve disputes between consumers and sellers. A) Federal Trade Commission (FTC). B) Walmart. C) Better Business Bureau (BBB). D) None of above. Show Answer Correct Answer: C) Better Business Bureau (BBB). 22. This type of business is a contractual agreement with a parent company to sell its products/services in an area. A) Partnership. B) Corporation. C) Franchise. D) Sole Proprietorship. Show Answer Correct Answer: C) Franchise. 23. Why do all societies have to make decisions about how resources will be used? A) People are greedy. B) There are not enough resources for those who want them. C) Resources are too expensive for most people. D) Because there is a huge gap between the rich and poor. Show Answer Correct Answer: B) There are not enough resources for those who want them. 24. The value of the next best option that is not selected is A) Profit. B) Standard of living cost. C) Opportunity cost. D) Time utility. Show Answer Correct Answer: C) Opportunity cost. 25. A Service refers to: A) Physical things you can see and touch. B) An action or skill that someone does for you. C) A business. D) Physical things that you can buy. Show Answer Correct Answer: B) An action or skill that someone does for you. 26. Who controls the cash rate (interest rate) in Australia? A) Australian Government. B) RBA. C) Qld Government. D) CBA. Show Answer Correct Answer: B) RBA. 27. A large business/enterprise would have ..... A) Less than 10 persons employed. B) 250 or more persons employed. C) 50-249 persons employed. D) 10-49 persons employed. Show Answer Correct Answer: B) 250 or more persons employed. 28. In what way does specialization increase productivity? A) Specialization reduces scarcity. B) A. Specialization reduces the cost of production. C) A. Specialization increases the demand for a product. D) A. Specialized workers are generally more highly educated. Show Answer Correct Answer: B) A. Specialization reduces the cost of production. 29. Dan has $ 5, 000. He wants to invest his money in the type of business that will not take his personal assets if the business fails. In which type of business should he invest? A) Corporation. B) Partnership. C) Proprietorship. D) None of above. Show Answer Correct Answer: A) Corporation. 30. Which is NOT a benefit of technological change? A) Production method becomes more efficient, increases profit. B) Allow consumers to search and compare prices. C) Machinery replace labour, causing unemployment. D) New technologies create new job opportunities. Show Answer Correct Answer: C) Machinery replace labour, causing unemployment. 31. Jared has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If Jared chooses to take a nap, the opportunity cost of his decision is ..... A) The rest he is getting. B) The score he will earn on the math exam. C) The wages from his part-time job. D) All of the above. Show Answer Correct Answer: B) The score he will earn on the math exam. 32. The quantity of a good or service that businesses are willing and able to provide. A) Producers. B) Traditional Economy. C) Market Price. D) Supply. Show Answer Correct Answer: D) Supply. 33. Teachers, construction workers, and mechanics are examples of ..... A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: B) Labor. 34. A contest among sellers to win customers. A) Monopoly. B) Competition. C) Bait and switch. D) None of above. Show Answer Correct Answer: B) Competition. 35. It operates as a separate, legal body lead by an elected board of directors, the board is elected by shareholders, the owenera of the ..... A) Cooperative. B) Partnership. C) Corporation. D) Sole Proprietorship. Show Answer Correct Answer: C) Corporation. 36. What is the Economic Problem? A) There are unlimited resources to satisfy our limited needs and wants. B) It is very difficult to learn. C) There are too many producers and not enough consumers. D) There are limited resources to satisfy our unlimited needs and wants. Show Answer Correct Answer: D) There are limited resources to satisfy our unlimited needs and wants. 37. What is an example of a service? A) A bus journey. B) A bus A bus. C) A bus stop A bus stop. D) None of above. Show Answer Correct Answer: A) A bus journey. 38. A ..... is anywhere buyers and sellers meet to buy and sell goods and services. A) Workplace. B) Restaurant. C) Market. D) Store. Show Answer Correct Answer: C) Market. 39. Julie buys used clothes at garage sales and then auctions them off herself off the internet. Which type of business does she have? A) Conglomerate. B) Proprietorship. C) Corporation. D) Partnership. Show Answer Correct Answer: B) Proprietorship. 40. Most governments operate under this type of economic system. A) Command System. B) Mixed System. C) Traditional System. D) Market System. Show Answer Correct Answer: B) Mixed System. 41. What is scarcity? A) Giving something up to have something else. B) Extra cost of production. C) The condition that results form having unlimited wants with limited resources. D) Rise in general level of prices and workers need more money. Show Answer Correct Answer: C) The condition that results form having unlimited wants with limited resources. 42. If my total costs are $ 50 and my total revenue is $ 80, what is my profit A) $ 400. B) $ 30. C) $ 130. D) $ 80. Show Answer Correct Answer: B) $ 30. 43. Willingness to pay for the want is ..... A) Need. B) Desire. C) Demand. D) Show off. Show Answer Correct Answer: C) Demand. 44. Normally a demand curve will have the shape: A) 3.downward sloping. B) 2.vertical. C) 4.upward sloping. D) 1.horizontal. Show Answer Correct Answer: A) 3.downward sloping. 45. The main advantage of a ..... is the ease of raising financial capital. A) Partnership. B) Corporation. C) Proprietorship. D) Franchise. Show Answer Correct Answer: B) Corporation. 46. The type of business ownership in which all business decisions are the sole responsibility of the owner. A) Sole proprietorship. B) Corporation. C) Franchise. D) Partnership. Show Answer Correct Answer: A) Sole proprietorship. 47. Which of the following is the cause of central economic problem? A) Scarcity of recourses. B) Unlimited wants. C) Alternative use. D) All of the above. Show Answer Correct Answer: D) All of the above. 48. If elasticity of demand is very low it shows that the commodity is: A) 1.necessity. B) 2.luxuary. C) 3.Has little importance in total budget. D) 4.none of the above. Show Answer Correct Answer: A) 1.necessity. 49. In economics 'Ends' refers to A) Human wants. B) Surplus. C) Alternative uses. D) Scarcity. Show Answer Correct Answer: A) Human wants. 50. Pets at Home PLC sells shares on the Stock Exchange to members of the public. They are a type of .....? A) Public Limited Company. B) Private Limited Company. C) Franchise. D) Sole Trader. Show Answer Correct Answer: A) Public Limited Company. 51. Central Problems arises in case of A) Capitalist Economy. B) Socialist Economy. C) Mixed Economy. D) All of the above. Show Answer Correct Answer: D) All of the above. 52. Which of the following is not a central economic problem? A) For whom to produce?. B) How to produce?. C) When to produce?. D) What to produce?. Show Answer Correct Answer: C) When to produce?. 53. Pigou was an ardent supporter of A) Growth definition. B) Welfare definition. C) Wealth definition. D) Scarcity definition. Show Answer Correct Answer: B) Welfare definition. 54. Which of the following is a basic right under capitalism? A) Freedom of collusion. B) Freedom from taxation. C) The right to compete. D) The right to vote. Show Answer Correct Answer: C) The right to compete. 55. Disadvantages include unlimited liability, difficult to raise financial capital, difficulty attracting qualified employees, limited life A) Franchise. B) Corporation. C) Sole Propriotorship. D) Bananas. Show Answer Correct Answer: C) Sole Propriotorship. 56. What is a shareholder? A) Individual or groups who own shares in a company. B) A group of companies. C) A person who provides a service. D) The owner of any business. Show Answer Correct Answer: A) Individual or groups who own shares in a company. 57. Into what two categories can wants be divided? A) Unlimited and noneconomic. B) Economic and noneconomic. C) Unlimited and limited. D) Unlimited and economics Economic and noneconomic. Show Answer Correct Answer: B) Economic and noneconomic. 58. Which business is not a franchise? A) Nike. B) Boost. C) Hungry Jacks. D) McDonalds. Show Answer Correct Answer: A) Nike. 59. Economic stress has led to downsizing. This has led to: A) Increased work hours. B) Less part time workers. C) Less contingent workers. D) None of above. Show Answer Correct Answer: A) Increased work hours. 60. Which of the following involves Business decision making? A) Continue or shut down decision. B) Launching of new product. C) Proper debt and equity mix. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousNext →Related QuizzesEconomy QuizzesGeneral Knowledge QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books