This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 6 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Give THREE reasons for the growth in international tourism A) Equal. B) Increase in disposable income. C) Improvement in the tourism infrastructure. D) Cheaper flights. Show Answer Correct Answer: B) Increase in disposable income. 2. ..... is the term for all activities involved in developing and exchanging products. A) Entrepreneurship. B) Economics. C) Corporation. D) Business. Show Answer Correct Answer: D) Business. 3. Which are important for their ability to move resources, products, and financial capital across national boundaries with relative ease? A) Conglomerates. B) Mergers. C) Multinationals. D) Corporations. Show Answer Correct Answer: C) Multinationals. 4. The law of Scarcity- A) Does not apply to developed and rich countries. B) Applies only to less developed countries. C) Implies that the consumers' want will be satisfied in a socialist economy. D) Implies that consumers' want will never be completely satisfied. Show Answer Correct Answer: D) Implies that consumers' want will never be completely satisfied. 5. How is a limited company different from a sole trader or partnership? A) A limited company has only one or two owners. B) A limited company is usually owned by one person. C) A limited company only operates online. D) The owners (share holders) have limited liability. Show Answer Correct Answer: D) The owners (share holders) have limited liability. 6. This is an assumption of law of demand A) 2.Quantity should not change. B) 4.Income of consumer should not change. C) 1.Price of the commodity should not change. D) 3.Supply should not change. Show Answer Correct Answer: B) 4.Income of consumer should not change. 7. Which of the following business practice REDUCES consumer sovereignty? A) Marketing. B) Misleading conduct. C) Planned Obsolescence. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Organization that promotes the collective interests of its members rather than seeking financial gain for its owners A) Limited life. B) Proprietorship. C) Nonprofit organization. D) Partnership. Show Answer Correct Answer: C) Nonprofit organization. 9. In the circular flow model, the real flow (not money) from households to producers is: A) Wages and salaries. B) Goods and services. C) Factors of production. D) Consumption expenditure. Show Answer Correct Answer: C) Factors of production. 10. An Economy in which resources are owned and controlled by the Government. A) Economic System. B) Command Economy. C) Market Economy. D) Market Price. Show Answer Correct Answer: B) Command Economy. 11. A term for all the activities involved inn developing and exchanging products. A) Market. B) Business. C) Service. D) Profit. Show Answer Correct Answer: B) Business. 12. When two goods are perfect complementary, the indifference curve is: A) L-shaped. B) U shaped. C) Circular in shape. D) A straight line. Show Answer Correct Answer: A) L-shaped. 13. Things required in-order to live. A) Needs. B) Market Price. C) Trade-off. D) Producers. Show Answer Correct Answer: A) Needs. 14. Which is not a study under micro economics? A) General Employment. B) Firm. C) Consumer. D) Producer. Show Answer Correct Answer: A) General Employment. 15. Match list I and list II and choose the correct answer using the codes given belowList I (Economist) List II (Book)A. Adam Smith 1. EconomicsB. Marshall 2. Wealth of nationsC. Robbins 3. Nature and Significance of Economic ScienceD. Samuelson 4. Principles of Economics A) A-1, B-2, C-3, D-4. B) A-2, B-1, C-4, D-3. C) A-4, B-3, C-2, D-1. D) A-2, B-4, C-3, D-1. Show Answer Correct Answer: D) A-2, B-4, C-3, D-1. 16. A person in which of the following fields would most likely use economics? A) Education. B) Medical. C) Business. D) Construction. Show Answer Correct Answer: C) Business. 17. ..... is the tendency in a free market for the price to change until market clears. A) 1.shortage. B) 2.market mechanism. C) 3.surplus. D) 4.none of the above. Show Answer Correct Answer: B) 2.market mechanism. 18. Amount borrowed when getting a loan or issuing a bond A) Principal. B) Unlimited liability. C) Inventory. D) Depreciation. Show Answer Correct Answer: A) Principal. 19. The World's richest entrepreneur is: A) Queen Elizabeth II. B) Bill Gates-Microsoft. C) Jeff Bezos-Amazon. D) Gina Rhinehardt-Rio Tinto. Show Answer Correct Answer: C) Jeff Bezos-Amazon. 20. A curve that shows relationship between quantity of good that producers are willing to sell and the price of the good is called A) 1.supply curve. B) 2.demand curve. C) 3.elesticities of supply. D) 4.none of the above. Show Answer Correct Answer: A) 1.supply curve. 21. A graph containing a set of indefference curves showing the market basket among which a consumer is indefferent is called A) 1.indeffrence map. B) 2.indefference curve. C) 3. both 1 & 2. D) 4.none of the above. Show Answer Correct Answer: A) 1.indeffrence map. 22. A ..... economy is one in which economic decisions are based on a values, culture, and customs. A) Command. B) Market. C) Traditional. D) Mixed. Show Answer Correct Answer: C) Traditional. 23. External economies of scale are cost savings available to the whole ..... as a result of its ..... A) Business, Location. B) Industry, Location. C) Industry, Size. D) Business, Size. Show Answer Correct Answer: B) Industry, Location. 24. The definition of Scarcity is ..... A) An unlimited amount of resources to meet limited wants and needs. B) A limited amount of resources to meet unlimited wants and needs. C) When people use time and energy to create events. D) A city where individuals commit themselves to unlimited wants and needs. Show Answer Correct Answer: B) A limited amount of resources to meet unlimited wants and needs. 25. Which of the following may be an example of a need? A) An iPhone. B) Medication. C) Netflix. D) A Ferrari. Show Answer Correct Answer: B) Medication. 26. Economy that is based on supply and demand where individual companies and consumers make the decisions about what, how and for whom items will be produced. A) Command economy. B) Market economy. C) Mixed economy. D) None of above. Show Answer Correct Answer: B) Market economy. 27. Tourism, hospitals and banking are all examples of which industry? A) Tertiary. B) Primary. C) Secondary. D) None of above. Show Answer Correct Answer: A) Tertiary. 28. Which of the following is a variable cost for a business? A) Electric bill for security lights. B) Wages. C) Manager salary. D) Payment for a license to operate. Show Answer Correct Answer: B) Wages. 29. Business that is jointly owned by two or more persons A) Depreciation. B) Dividend. C) Stock. D) Partnership. Show Answer Correct Answer: D) Partnership. 30. Why are firms in markets that have perfect competition described as "price takers" ? A) Due to competition you can't charge whatever you want. B) Due to barriers to entry prices need to be high. C) Due to lack of competition you can charge whatever you want. D) Due to few businesses providing a product, prices change dramatically. Show Answer Correct Answer: A) Due to competition you can't charge whatever you want. 31. A budget constraints line is a result of: A) Market price of commodity X. B) Market price of commodity Y. C) Income of the consumer. D) All of these. Show Answer Correct Answer: D) All of these. 32. The distinction between variable cost and fixed cost is relevant only in A) Long period. B) Mixed period. C) Medium term. D) Short period. Show Answer Correct Answer: D) Short period. 33. Business income is considered personal income A) Partnership. B) Corporation. C) Sole Proprietorship. D) Partnership and Sole Proprietorship. Show Answer Correct Answer: D) Partnership and Sole Proprietorship. 34. State the correct answer:The law of scarcity: A) Implies that consumers wants will be satisfied in a socialistic system. B) Does not apply to rich, developed countries. C) Applies only to the less developed countries. D) Implies that consumers wants will never be completely satisfied. Show Answer Correct Answer: D) Implies that consumers wants will never be completely satisfied. 35. Which of the following does not improve the quality / productivity of land? A) Migration. B) Drainage. C) Genetically-modified crops. D) Reclamation. Show Answer Correct Answer: A) Migration. 36. Economics has been called a 'Science of Choice ' because A) The human wants are unlimited, so choice making is essential. B) Economics is a Social science. C) Economics is a Study of material welfare. D) Economics is a Study of man and choice. Show Answer Correct Answer: A) The human wants are unlimited, so choice making is essential. 37. What is resource development? A) A government agency. B) My least favorite subject. C) The study of how to increase resources. D) None of above. Show Answer Correct Answer: C) The study of how to increase resources. 38. "Real" GDP more accurately measures changes in production than Nominal GDP because it accounts for ..... A) Increases in unemployment. B) Decreases in exports. C) Changes in price. D) Phases of the business cycle. Show Answer Correct Answer: C) Changes in price. 39. Perfect competition is characterized by A) Large number of buyers and sellers. B) Homogeneous product. C) Free entry and exit of firms. D) All the above. Show Answer Correct Answer: D) All the above. 40. Initiative and Innovation help businesses gain the competitive advantage by A) Finding a market where you can sell things. B) Finding a niche. C) Finding a niche in the market and gaining more consumer support. D) Finding more consumers. Show Answer Correct Answer: C) Finding a niche in the market and gaining more consumer support. 41. The third step in the decision making process is A) Evaluate the alternatives. B) Define the problem. C) Make a choice. D) Identify the alternatives. Show Answer Correct Answer: A) Evaluate the alternatives. 42. Which of the following is NOT a function of business? A) Marketing. B) Production. C) Finance. D) Capitalism. Show Answer Correct Answer: D) Capitalism. 43. What is a company called that sells stock to raise money? A) Limited Partnership. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: B) Corporation. 44. What is the term that describes when the amount of goods produced is about the same as the number of consumers who are willing to buy the product? A) Risk. B) Supply. C) Demand. D) Equilibrium point/market point. Show Answer Correct Answer: D) Equilibrium point/market point. 45. Ind the price per unit P that produces the maximum profitC= 100+30 x Demand function P=90-x A) 60 $. B) 90$. C) 60$. D) 80$. Show Answer Correct Answer: A) 60 $. 46. Which of the following groups of words best describes wants: A) Limited, changing, and compensating. B) Limited, unchanging, and competing. C) Unlimited, unchanging, and compensating. D) Unlimited, changing, and competing. Show Answer Correct Answer: D) Unlimited, changing, and competing. 47. Individuals who will buy the products and services in the market. A) Consumers. B) Creditors. C) Suppliers. D) Government. Show Answer Correct Answer: A) Consumers. 48. A gap between unlimited wants and limited resources creates A) Resources. B) Wants. C) Scarcity. D) Economics. Show Answer Correct Answer: C) Scarcity. 49. One way to measure economic growth is to A) Count the number of businesses in a country. B) Compare GDP. C) Compare interest rates. D) Measure the number of imported goods coming into a country. Show Answer Correct Answer: B) Compare GDP. 50. Printed and online promotion is needed in starting your business. A) Sustainability. B) Big ideas. C) Growth. D) Advertisement. Show Answer Correct Answer: D) Advertisement. 51. The main economic problem faced by all society is A) Scarcity. B) Unemployment. C) Inequality. D) Poverty. Show Answer Correct Answer: A) Scarcity. 52. What is a major reason for conglomerate mergers? A) Unlimited life. B) Conglomeration. C) Multinationals. D) Diversification. Show Answer Correct Answer: D) Diversification. 53. In Business economics 'ends' refers to- A) Human wants. B) Resources. C) Both (1) and (2). D) Neither (1) nor (2). Show Answer Correct Answer: A) Human wants. 54. Ownership certificates in a firm A) Charter. B) Dividend. C) Collective barganing. D) Stock. Show Answer Correct Answer: D) Stock. 55. The most recognizable form of non-price competition is? A) More Locations. B) Low Price. C) Advertising. D) Better Customer Service. Show Answer Correct Answer: C) Advertising. 56. ..... analyses cause and effect relationship but does not pass any value judgment. A) Positive or pure science. B) Normative science. C) None of the above. D) All of above. Show Answer Correct Answer: A) Positive or pure science. 57. Nike, Google and Apple are examples of ..... A) Corporations. B) Franchises. C) Sole Proprietorships. D) Partnerships. Show Answer Correct Answer: A) Corporations. 58. An action or task that is performed, usually for a fee. A) Economics. B) Customer. C) Service. D) Profit. Show Answer Correct Answer: C) Service. 59. What can a Government do to increase standards of living? A) Increase the cost of living. B) Boost economic growth. C) Reduce spending on services. D) Nothing. Show Answer Correct Answer: B) Boost economic growth. 60. The law of ..... says that the price of a product is determined by the relationship of the supply of a product and the demand for the product. A) Supply and demand. B) Physics. C) Consumer behavior. D) Business. Show Answer Correct Answer: A) Supply and demand. ← PreviousNext →Related QuizzesEconomy QuizzesGeneral Knowledge QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 7Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books