This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 5 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The capability of a system to expand its total output under an increased volume of work when resources are added. A) Big Idea. B) Autonomy. C) Scalability. D) Profitability. Show Answer Correct Answer: C) Scalability. 2. Organization of workers formed to represent its members' interests in various employment matters A) Corporation. B) Principal. C) Multinational. D) Labor union. Show Answer Correct Answer: D) Labor union. 3. In Business economics 'Means' refers to ..... A) Human wants. B) Resources. C) Both (1) and (2). D) Neither (1) nor (2). Show Answer Correct Answer: B) Resources. 4. What is the role of the entrepreneur in the modern economy? A) To create jobs. B) To take big risks. C) To preserve natural resources. D) To generate wealth. Show Answer Correct Answer: D) To generate wealth. 5. This type of partnership is less risky because this partner is only responsible for the contribution he/she has made to the partnership A) General Partnership. B) Sole proprietorship. C) Limited partnership. D) Corporation. Show Answer Correct Answer: C) Limited partnership. 6. This type of business is owned by two or more people. A) Sole Trader. B) Limited Company. C) Partnership. D) Franchise. Show Answer Correct Answer: C) Partnership. 7. (A) There is similarity between Robbins's definition and Samuelson's definition(B) Samuelson's definition is not only dynamic in content; it is also wider in scope.Of these A) A is true, but B is false. B) A is false, but B is true. C) Both A and B are true. D) Both A and B are false. Show Answer Correct Answer: C) Both A and B are true. 8. The most prominent members of the Neo-classical school of economics is A) Adam Smith. B) Milton Friedman. C) Lucas. D) Alfred Marshall. Show Answer Correct Answer: D) Alfred Marshall. 9. ..... is a condition in which the average level of prices is actually falling. A) Deflation. B) Stagflation. C) Disinflation. D) Uniflation. Show Answer Correct Answer: A) Deflation. 10. Which of the following is best described as what you are willing to give up to have your first choice? A) Economic Decision-Making. B) Opportunity Cost. C) Scarcity. D) Trade-off. Show Answer Correct Answer: B) Opportunity Cost. 11. Economists regard decision making as important because: A) The resources required to satisfy our unlimited wants and needs are finite, or scarce. B) It is critical to understand how we can best allocate our scarce resources to satisfy society's unlimited wants and needs. C) Resources have alternative uses. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. Which statement is NOT TRUE for consumer sovereignty? A) Consumer has the power to decide what goods to be produced. B) Consumers send signals to producers through their demand. C) Business decides what they want to produce. D) Producers produce g/s they think has highest demand. Show Answer Correct Answer: C) Business decides what they want to produce. 13. An example of 'positive' economic analysis would be A) An analysis of the relationship between the price of food and the quantity purchased. B) Determining how much income each person should be guaranteed. C) Determining the 'fair' price for food. D) Deciding how to distribute the output of the economy. Show Answer Correct Answer: A) An analysis of the relationship between the price of food and the quantity purchased. 14. The heart of economics is A) Decision-making. B) Wants. C) Trade-offs. D) Resources. Show Answer Correct Answer: A) Decision-making. 15. Which of the following business organizations is likely to experience disagreements between management and shareholders? A.Co-operative societies B.Sole traderC.Partnerships D.Joint-stock company A) D. B) C. C) A. D) B. E) D. Show Answer Correct Answer: A) D. 16. The economists who presented the growth oriented definition of economics A) Adam Smith. B) Samuelson. C) Marshall. D) Karl Marx. Show Answer Correct Answer: B) Samuelson. 17. Which is NOT a feature of Utility A) Relative. B) No moral or legal connotations. C) Measurable. D) Subjective. Show Answer Correct Answer: C) Measurable. 18. The economic problems of relative scarcity refers to ..... A) Consumers purchasing goods and services from businesses. B) Consumers not being able to afford different goods and services. C) Consumers making purchasing decisions in relation to their needs and wants. D) Consumers making purchasing decisions in relations to goods and services. Show Answer Correct Answer: C) Consumers making purchasing decisions in relation to their needs and wants. 19. The cottage industry system involved manufacturing- A) Of hand made luxury goods. B) In the home. C) Steam engines and other cottage-sized macines. D) Cheese and pastries. Show Answer Correct Answer: B) In the home. 20. What is "spam" ? A) A form of hacking. B) A form of firewall. C) Intellectual property. D) Junk e-mail. Show Answer Correct Answer: D) Junk e-mail. 21. Whose ideas led to Socialism? A) Adam Smith. B) Karl Marx. C) Vladimir Putin. D) None of above. Show Answer Correct Answer: B) Karl Marx. 22. Which economic activity would i such as thinking, research and developing new ideas fall under? A) Quaternary. B) Primary. C) Tertiary. D) Secondary. Show Answer Correct Answer: A) Quaternary. 23. A FULL LARGE MARKET A) PERFECT. B) OLIGOPOLY. C) MONEY. D) MONOPOLY. Show Answer Correct Answer: A) PERFECT. 24. Gives the owner the legal right to make or sell an invention? A) Trademark. B) Copyright. C) Patent. D) Design patent. Show Answer Correct Answer: C) Patent. 25. In which economic system is trade and barter most common? A) Mixed. B) Command. C) Market. D) Traditional. Show Answer Correct Answer: D) Traditional. 26. Something we would like to have but can survive without A) Producer good. B) Public good. C) Want. D) Need. Show Answer Correct Answer: C) Want. 27. What is an import quota? A) A restriction of the amount of imports. B) A restriction on the amount of exports. C) The number of imports in Australia. D) The number of taxes placed on a product. Show Answer Correct Answer: A) A restriction of the amount of imports. 28. What is a planned economy? A) An economy directed to basic subsistence rather then to the market. B) An economic system in which private individuals or businesses own capital goods. C) Type of economic system where investment, production and the allocation of capital goods take place. D) None of above. Show Answer Correct Answer: C) Type of economic system where investment, production and the allocation of capital goods take place. 29. Who is the queen of the Social sciences A) Adam Smith. B) Alfred Marshall. C) No of the above. D) None of above. Show Answer Correct Answer: C) No of the above. 30. Which of the following is considered as a disadvantage of allocating resources using the market system? A) Income will tend to be unevenly distributed. B) People do not get goods of their choice. C) Men of Initiative and enterprise are not rewarded. D) Profits will tend to be low. Show Answer Correct Answer: A) Income will tend to be unevenly distributed. 31. Total utility maximum when: A) Average utility is Zero. B) Marginal utility is maximum. C) Average utility is maximum. D) Marginal utility is Zero. Show Answer Correct Answer: D) Marginal utility is Zero. 32. "Economics is the Science which studies human behaviour as a relationship between ends and scarce means which have alternative uses" -These lines are attributed to A) Samuelson. B) Lionel Robbins. C) Robertson. D) Marshall. Show Answer Correct Answer: B) Lionel Robbins. 33. What is the relationship between quantity supplied and price? A) A. They are not related. B) A. They are directly related. C) They are inversely related. D) They are related through demand. Show Answer Correct Answer: B) A. They are directly related. 34. Activities provided for the satisfaction of others that are consumed the time they are produced. A) Trade-off. B) Mixed Economy. C) Services. D) Wants. Show Answer Correct Answer: C) Services. 35. What does the Circular Flow show? A) Consumers and Producers. B) Business and Households. C) Goods & services. D) How consumers and producers are interdependent. Show Answer Correct Answer: D) How consumers and producers are interdependent. 36. Which of the following does NOT illustrate opportunity cost? A) I should buy a book rather than a food. B) If I buy a computer, I must do without a 35" television. C) If I spend a lot now means I will spend more in the future. D) If I study today, I must give up going to the football game. Show Answer Correct Answer: C) If I spend a lot now means I will spend more in the future. 37. Which of the following is not a positive economic statement? A) Looking at the current condition of farmers, the government is expected to decrease the rate of interest on loan. B) Economics is a social science that studies human behaviour. C) Unemployment rate decreases with industrialization. D) India spends a huge amount of money on national defense. Show Answer Correct Answer: A) Looking at the current condition of farmers, the government is expected to decrease the rate of interest on loan. 38. Which of these is a service? A) Chocolate. B) School fees. C) Toothbrush. D) Clothes. Show Answer Correct Answer: B) School fees. 39. A curve that shows relation ship between quantity of goods that consumer are willing to buy and the price of the good. A) 1.supply curve. B) 2.demand curve. C) 3.elesticities of supply. D) 4. none of the above. Show Answer Correct Answer: B) 2.demand curve. 40. A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of A) Macro-Economics. B) Descriptive Economics. C) Micro-economics. D) Normative economics. Show Answer Correct Answer: A) Macro-Economics. 41. Business owned and run by one person A) Partnership. B) Sole proprietorship. C) Corporation. D) Consumer cooperative. Show Answer Correct Answer: B) Sole proprietorship. 42. Business owned and run by 1 person A) Partnership. B) Corporation. C) Sole proprietorship. D) Nonprofit organization. Show Answer Correct Answer: C) Sole proprietorship. 43. Two goods for which the marginal rate of substituion of one of the other is constant are called A) 1.perfect substitutes. B) 2.perfect complements. C) 3.perfect elastic. D) 4.none of the above. Show Answer Correct Answer: A) 1.perfect substitutes. 44. Which of the following is concerned with micro economics A) The size of national output. B) The level of employment. C) Change in the general level of prices. D) None of the above. Show Answer Correct Answer: D) None of the above. 45. What business is a combination of the traditional business firms and the internet? These businesses not only specialize in traditional methods of distribution, but also ways using different technology. A) Hybrid Business. B) Merchandising Business. C) Limited Liability Company. D) Corporation. Show Answer Correct Answer: A) Hybrid Business. 46. Which of the following is most likely an example of a monopoly? A) A Starbucks across from Dunkin Donuts. B) A gas station in a town by itself. C) 3 fast food restaurants all on the same street. D) A Sainsbury's 4 miles away from a Tesco's. Show Answer Correct Answer: B) A gas station in a town by itself. 47. Who expressed the view that economics is neutral between ends? A) Adam Smith. B) Marshall. C) Samuelson. D) Robbins. Show Answer Correct Answer: D) Robbins. 48. A ..... is a business that is jointly owned by two or more persons. A) Franchise. B) Partnership. C) Proprietorship. D) Corporation. Show Answer Correct Answer: B) Partnership. 49. A combination of two or more businesses to form a single firm A) Net income. B) Merger. C) Depreciation. D) Multinational. E) Vertical merger. Show Answer Correct Answer: B) Merger. 50. Micro and macro are not two independent approaches to economic analysis but they are substitute to each other. A) PARTLY FALSE. B) True. C) False. D) PARTLY TRUE. Show Answer Correct Answer: C) False. 51. All of the following are basic economic questions except A) How to produce?. B) For whom to produce it for?. C) What to produce?. D) When to produce?. Show Answer Correct Answer: D) When to produce?. 52. What effect does rising interest rates have on consumer spending? A) Increases spending. B) Decreases spending. C) Neither increases or decreases spending. D) Both increases and decreases spending. Show Answer Correct Answer: B) Decreases spending. 53. The driving force in choosing to start a business is ..... A) Supply and demand. B) Market forces. C) Competition. D) Profit. Show Answer Correct Answer: D) Profit. 54. Match List I and II and choose the correct answer using the codes given below List I (Economist) List II (Definition) A. Adam Smith 1. Welfare B. Marshall 2. Wealth C. Robbins 3. Growth D. Samuelson 4. Scarcity A) A-4, B-3, C-2, D-1. B) A-2, B-3, C-1, D-4. C) A-2, B-1, C-4, D-3. D) A-1, B-2, C-3, D-4. Show Answer Correct Answer: C) A-2, B-1, C-4, D-3. 55. The Dow Jones industrial average swept past 12, 000 for the first time. Investors are increasingly optimistic about corporate earnings and the economy. This achievement MOST likely involved which type of business organization? A) Corporation. B) Conglomerate. C) Partnership. D) Proprietorship. Show Answer Correct Answer: A) Corporation. 56. Tony Galati, owner of the Spud Shed, showed initiative and innovation by A) Creating a business that sourced products straight from local farmers. B) Creating a business that made him a profit. C) Creating a business that stored products in warehouses. D) Creating a business that destroyed the competitors. Show Answer Correct Answer: A) Creating a business that sourced products straight from local farmers. 57. Supply represents ..... A) How much of a product that the customer wants to buy. B) How many goods are available for purchase. C) How much of a product or service the market has to offer. D) How much of a product or service that buyers want to sell. Show Answer Correct Answer: C) How much of a product or service the market has to offer. 58. "Economics is what economists do" was remarked by A) Marshall. B) Jacob Viner. C) Keynes. D) Adam Smith. Show Answer Correct Answer: B) Jacob Viner. 59. Persons or company who supplies goods and services. A) Suppliers. B) Consumer. C) Government. D) Creditors. Show Answer Correct Answer: A) Suppliers. 60. Which one of the following is an advantage for an entrepreneur for starting a business as a sole trader? A) Owner has control of decision making. B) Limited liability means that losses can be minimised. C) It is easier to raise finance than other types of business structure. D) Less risky than other types of business structure. Show Answer Correct Answer: A) Owner has control of decision making. ← PreviousNext →Related QuizzesEconomy QuizzesGeneral Knowledge QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 6Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books