This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A major benefit of socialism is the: A) Emphasis on social equality. B) Emphasis on private enterprise instead of public ownership. C) Ability to keep taxes low. D) Ability to stimulate rapid economic growth. Show Answer Correct Answer: A) Emphasis on social equality. 2. The private ownership of economic resources by individuals rather than by the Government. A) Consumer. B) Capitalism. C) Demand. D) Economic System. Show Answer Correct Answer: B) Capitalism. 3. Which of these protects music, books, poems, architecture, films and artwork? A) Trademark. B) Copyright. C) Utility Patent. D) Design patent. Show Answer Correct Answer: B) Copyright. 4. Which of the following is NOT one of the five roles of business A) Paying taxes to government. B) Stimulating economy. C) Competing with other businesses. D) Providing employment. Show Answer Correct Answer: C) Competing with other businesses. 5. Which of the following is not the function of the Niti Aayog? A) To create a knowledge, innovation & entrepreneurial support system. B) To foster cooperative federalism. C) To evolve a shared vision national development priorities sectors & strategies. D) To give final approval to the Five year plans of India. Show Answer Correct Answer: D) To give final approval to the Five year plans of India. 6. A cooperative is A) A business that is owned and operated by the group of people that it serves. B) A business with one operator. C) A business which sells shares on the ASX. D) A business operated by the public. Show Answer Correct Answer: A) A business that is owned and operated by the group of people that it serves. 7. The term "derived demand" means ..... A) Demand for secondary products only. B) Demand that is dependent on government supplying the product. C) Demand that arises because the supply of the good is reduced. D) Demand that arises because there is demand for another good. Show Answer Correct Answer: D) Demand that arises because there is demand for another good. 8. Which is NOT a question all societies have to answer due to scarce resources? A) When will products be produced?. B) How will products be produced?. C) What products will be produced?. D) Who will gets access to the resources and the products they produce?. Show Answer Correct Answer: A) When will products be produced?. 9. The word 'Economics' originates from the word ..... A) Oikonomia. B) Eikonomikos. C) Ekconomics. D) Oikomnomikos. Show Answer Correct Answer: D) Oikomnomikos. 10. Your leading product has a 30% market share which is 10% higher than your best competitor. Where would you analyze this information in SWOT analysis? A) Opportunities. B) Weaknesses. C) Strengths. D) Threats. Show Answer Correct Answer: C) Strengths. 11. Characteristics include owned by two or more people and may be general or limited A) Sole Propriotorship. B) Franchise. C) Corporation. D) Partnership. Show Answer Correct Answer: D) Partnership. 12. ..... are essential, while ..... just add to the quality of life. A) Needs, wants. B) Products, services. C) Wants, needs. D) Goods, services. Show Answer Correct Answer: A) Needs, wants. 13. Normally a supply curve will have the shape: A) 1.horizontal. B) 3.downward sloping. C) 2.vertical. D) 4.upward sloping. Show Answer Correct Answer: D) 4.upward sloping. 14. When people are employed on short term contracts it is an example of: A) Command Economy. B) Casualisation. C) Outsourced Labour. D) Full-time work. Show Answer Correct Answer: B) Casualisation. 15. ..... exists when the entire supply of a good is controlled by a single seller. A) A monopoly. B) Oligopoly. C) Pure capitalism. D) Perfect competition. Show Answer Correct Answer: A) A monopoly. 16. McDonald's and Burger King are examples of ..... A) Franchises. B) Sole Trader. C) Partnerships. D) Limited Company. Show Answer Correct Answer: A) Franchises. 17. The concept of marginal utility decreasing with the increase in amount consumed of a commodity is called A) Diminishing marginal returns. B) Diminishing total returns. C) Diminishing marginal utility. D) Diminishing total utility. Show Answer Correct Answer: C) Diminishing marginal utility. 18. Of the following which is an ADVANTAGE of increased competition? A) Higher prices. B) Increased variety. C) Lower quality. D) Declining customer service. Show Answer Correct Answer: B) Increased variety. 19. What words describes too much of a product in the market? A) Shortage. B) Scarcity. C) Supersized. D) Surplus. Show Answer Correct Answer: D) Surplus. 20. A significant decline in general economic activity in a designated region is called A) Expansion. B) Recession. C) Gross domestic product. D) Economic growth. Show Answer Correct Answer: B) Recession. 21. Can exist indefinitely A) Partnership. B) Sole Proprietorship. C) Corporation. D) Partnership and Corporation. Show Answer Correct Answer: C) Corporation. 22. The people who bring all the factors together to create something are practicing A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: D) Entrepreneurship. 23. What freedom did Adam Smith believe was essential for an economy? A) The freedom to not wear a mask in a pandemic. B) The freedom to own land and property and keep profits. C) The freedom of speech. D) The freedom to practice your religion. Show Answer Correct Answer: B) The freedom to own land and property and keep profits. 24. When demand for a product becomes greater than available supply, a(n) ..... develops. A) Equilibruim. B) Shortage. C) Surplus. D) Competition. Show Answer Correct Answer: B) Shortage. 25. What do we call a person who is willing to take the risks of starting a business in order to make a profit? A) Proprieter. B) Incorporater. C) Partner. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 26. A corporation is A) A business owned by corps. B) A business owned by the government. C) A business owned by shareholders. D) A corporate business. Show Answer Correct Answer: C) A business owned by shareholders. 27. A medium business/enterprise would have ..... A) 10-49 persons employed. B) Less than 10 persons employed. C) 50-249 persons employed. D) 250 or more persons employed. Show Answer Correct Answer: C) 50-249 persons employed. 28. A merger of corporations involved in different steps of manufacturing or marketing is known as a A) Multinational merger. B) Horizontal merger. C) Conglomerate. D) Vertical merger. Show Answer Correct Answer: D) Vertical merger. 29. The point at which supply and demand cross. A) Market price. B) Inflation point. C) Supply point. D) Crosspoint. Show Answer Correct Answer: A) Market price. 30. Which factor might cause an increase in the supply of a product? A) An increase in the cost of raw materials. B) Fewer sellers in the marketplace. C) A decrease in government regulations. D) A decrease in productivity. Show Answer Correct Answer: C) A decrease in government regulations. 31. Which of the following is not within the scope of Business Economics? A) Capital Budgeting. B) Risk Analysis. C) Business Cycles. D) Accounting Standards. Show Answer Correct Answer: D) Accounting Standards. 32. Stock of finished goods and parts in reserve A) Inventory. B) Labor union. C) Depreciation. D) Principal. Show Answer Correct Answer: A) Inventory. 33. Disadvantage of a central planned economy? A) Social justice. B) Limited choice of product and services. C) Public goods. D) Profit. Show Answer Correct Answer: B) Limited choice of product and services. 34. What do points inside the PPF indicate? A) The combination of goods that employ goods efficiently. B) The combination of goods that employ resources fully. C) The combination of goods that do not employ resources fully. D) None of above. Show Answer Correct Answer: C) The combination of goods that do not employ resources fully. 35. Macroeconomics is also called ..... economics A) Applied. B) Aggregate. C) Experimental. D) None of the above Macroeconomics is also called economics. Show Answer Correct Answer: B) Aggregate. 36. Given that Qd =30-3p, Qs =9p-18, determine the equilibrium quantity. A) 18. B) 25. C) 20. D) 27. E) 18. Show Answer Correct Answer: A) 18. 37. In Mixed economy, private sector- A) Are absolutely free to make any type of decisions. B) Works only for social objectives. C) Are regulated directly and / or indirectly by government. D) Does not exists at all. Show Answer Correct Answer: C) Are regulated directly and / or indirectly by government. 38. "The worth of a thing is what it will bring" -What economic term is this quote related to in the article? A) Currency. B) Investment. C) Merchandise. D) Supply & demand. Show Answer Correct Answer: D) Supply & demand. 39. ..... is the practice of buying at a low price in one location and selling at a higher price in Another A) 4. International Trade. B) 3. Free Trade. C) 2. Arbitrage. D) 1. Barter System. Show Answer Correct Answer: C) 2. Arbitrage. 40. Price of a product falls by 10% and its demand rises by 30%. The elasticity of demand is: A) 4. 1. B) 1. 1%. C) 3. 3. D) 2.5%. Show Answer Correct Answer: C) 3. 3. 41. Friendship would be considered a(n) ..... want. A) Economic. B) Limited. C) Noneconomic. D) Unlimited. Show Answer Correct Answer: C) Noneconomic. 42. Customers who purchase goods and services for their own use are called ..... Groups A) Groups. B) Purchasers. C) Individuals. D) Consumer. Show Answer Correct Answer: D) Consumer. 43. Susie is having a hard time deciding whether to purchase a new backpack for school or a new purse that she can use daily. She finally decides to buy the purse. What is Susie's opportunity cost? A) The money spent on the purse. B) The backpack. C) Nothing, since she got her preferred choice. D) None of above. Show Answer Correct Answer: B) The backpack. 44. Market structure characterized by a single firm dominating the market. A) Oligopoly. B) Purely Competitive. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 45. Exploitation and inequality are minimal under: A) Socialism. B) Mixed economy. C) Capitalism. D) All of the above. Show Answer Correct Answer: A) Socialism. 46. "Teach a person to start a fish farm, and he or she will be able to ..... a village for a lifetime." A) Teach. B) Support. C) Feed. D) Help. Show Answer Correct Answer: C) Feed. 47. Which one from the above is not the main cause of unemployment? A) Decrease in Population. B) Slow Economic Growth. C) Fall of Cottage and Small industries:. D) Slow Growth of Industrialisations. Show Answer Correct Answer: A) Decrease in Population. 48. Micro economic approach is A) Total. B) Individualistic. C) Aggregative. D) None of the above. Show Answer Correct Answer: B) Individualistic. 49. Utility describes the characteristics of a product that satisfy A) Scarcity. B) Needs and wants. C) Opportunity costs. D) Supply and demand. Show Answer Correct Answer: B) Needs and wants. 50. Advantages include full control, ease of start up, and no double taxation. A) Franchise. B) Partnership. C) Corporation. D) Sole Propriotorship. Show Answer Correct Answer: D) Sole Propriotorship. 51. A service is ..... A) Are the products offered by businesses. B) Are companies that offer business to consumers. C) Are physical, tangible items that can be seen and touched. D) The actions that are done by businesses for consumers. Show Answer Correct Answer: D) The actions that are done by businesses for consumers. 52. A consumer can be defined as A) The final user of goods and services. B) Someone who loves to eat. C) Someone who makes goods and services. D) Someone who consumes a lot. Show Answer Correct Answer: A) The final user of goods and services. 53. To get the best from you SWOT analysis you must first identify what? A) The aim. B) What your Job role is. C) How much time you have. D) How much money you have. Show Answer Correct Answer: A) The aim. 54. The term "economies of scale" refers to ..... A) The average costs of production decreasing as a firm expands. B) The average costs of production rising as a firm expands. C) The average costs of production remaining the same as a firm expands. D) The average costs of production at first decreasing, then increasing, as a firm expands. Show Answer Correct Answer: A) The average costs of production decreasing as a firm expands. 55. A micro business/enterprise would have ..... A) 250 or more persons employed. B) Less than 10 persons employed. C) 50-249 persons employed. D) 10-49 persons employed. Show Answer Correct Answer: B) Less than 10 persons employed. 56. Business combination involving firms that producethe same kind of product A) Net income. B) Multinational. C) Depreciation. D) Vertical merger. E) Horizontal merger. Show Answer Correct Answer: E) Horizontal merger. 57. A supply chain is ..... A) The transport of goods by sea or some other means. B) The sequence of processes involved in the production and distribution of a product or service. C) The commercial activity of transporting goods to customers. D) The amount of a commodity, product, or service available and the desire of buyers for it. Show Answer Correct Answer: B) The sequence of processes involved in the production and distribution of a product or service. 58. Find the number of units X produces the minimum average cost per unitC= 1.25x2 +25x +8000 A) 60. B) 80. C) 90. D) 70. Show Answer Correct Answer: B) 80. 59. Which of the following is not the feature of capitalist economy: A) Right to private property. B) Freedom of economic choice. C) Collective ownership. D) Consumer Sovereignty. Show Answer Correct Answer: C) Collective ownership. 60. A check that transfers a portion of the corporate earnings to a stockholder A) Net income. B) Cash flow. C) Dividend. D) Partnership. Show Answer Correct Answer: C) Dividend. ← PreviousNext →Related QuizzesEconomy QuizzesGeneral Knowledge QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books