This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 7 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Indefference curves are normally A) 1.downward sloping and can not intersect. B) 2.upward sloping. C) 3.indeffrent. D) 4.none of the above. Show Answer Correct Answer: A) 1.downward sloping and can not intersect. 2. Disadvantages of this business type include:needs a partnership agreement, partners might not get along, owners share profits, unlimited liability. A) Franchise. B) Limited Company. C) Partnership. D) Sole Trader. Show Answer Correct Answer: C) Partnership. 3. Which one of the following is not true? A) Micro economics is the study of the allocation of scarce resources. B) Economists use models to make testable predictions. C) Individuals, governments, and firms use micro economic models and predictions in decision making. D) Micro economics is often called income theory to emphasize the important role that prices play. Show Answer Correct Answer: D) Micro economics is often called income theory to emphasize the important role that prices play. 4. This economy of scale is where advertising budgets can be spread across multiple products for lower average costs. A) Managerial. B) Marketing. C) Financial. D) Purchasing. Show Answer Correct Answer: B) Marketing. 5. What usually happens to inflation during a recession? A) It decreases. B) It stays the same. C) It increases. D) It is zero. Show Answer Correct Answer: A) It decreases. 6. What is a car an example of? A) A Cost. B) A serviceA Service. C) A Product/Good. D) None of above. Show Answer Correct Answer: C) A Product/Good. 7. An oligopoly is a market that is characterized by: A) One firm that totally dominates the supply of the product. B) A large number of small firms all producing very similar products. C) A few large sellers who dominate the market. D) Several small firms that compete primarily by differentiating their products. Show Answer Correct Answer: C) A few large sellers who dominate the market. 8. It is an assessment of how easy it is for the buyers to drive prices down. A) Power of Retailer. B) Power of Wholesaler. C) Power of Seller. D) Power of Consumer. Show Answer Correct Answer: D) Power of Consumer. 9. Which one of the following is not an advantage of being a sole trader? A) Easy to set up and run. B) All the profits go to the owner. C) Cannot be continued when the owner dies. D) The owner has full control of the business. Show Answer Correct Answer: C) Cannot be continued when the owner dies. 10. Which of the following is not an advantage of a command economy? A) Lack of incentive for innovation. B) Serves people collectively by focusing on equality. C) Products produced fulfill needs. D) Can ensure stability. Show Answer Correct Answer: A) Lack of incentive for innovation. 11. Individuals and organizations that determine what products and services will be available for sale. A) Producers. B) Consumer. C) Economic Decision Making. D) Wants. Show Answer Correct Answer: A) Producers. 12. The most attractive alternative given up when a choice is made, is the A) Opportunity cost. B) Scarcity choice. C) Favorite choice. D) Economics cost. Show Answer Correct Answer: A) Opportunity cost. 13. Micro economics is a ..... equilibrium A) Total. B) General. C) Partial. D) Multi-Variable. Show Answer Correct Answer: C) Partial. 14. In economics, resources are: A) Anything used to create something else. B) The environment in general. C) Specifically lumber and water. D) Capital only. Show Answer Correct Answer: A) Anything used to create something else. 15. Decreased government spending may result in ..... taxes. A) Higher. B) More. C) Lower. D) None of above. Show Answer Correct Answer: C) Lower. 16. What is any word, name, or symbol used to identify a company? A) Utility Patent. B) Trademark. C) Copyright. D) Design patent. Show Answer Correct Answer: B) Trademark. 17. Things available to be used to produce goods and services. A) Capitalism. B) Economic Resources. C) Mixed Economy. D) Demand. Show Answer Correct Answer: B) Economic Resources. 18. This type of business organization makes it easier to secure financing because more than one person may apply for credit. A) Franchise. B) Sole proprietorship. C) Partnership. D) Corporation. Show Answer Correct Answer: C) Partnership. 19. What is a tariff? A) A tax on exported goods. B) A tax on the final good. C) GST. D) A tax on imported goods. Show Answer Correct Answer: D) A tax on imported goods. 20. The theory Stock Company can be a private company whose minimum membership isA. 2B. 5C. 7D. 10 A) A. B) C. C) B. D) D. E) A. Show Answer Correct Answer: A) A. 21. Which of the following is the best reason for studying economics: A) To determine which occupations interest you. B) To find the best use for resources and supplies. C) To prepare for effective decision-making and responsible citizenship. D) To learn how to invest money and express social responsibility. Show Answer Correct Answer: C) To prepare for effective decision-making and responsible citizenship. 22. Who is the current CEO of the Niti Aayog? A) Rajeev Kumar. B) Arvind Subramanyam. C) Narendra Modi. D) Amitabh Kant. Show Answer Correct Answer: D) Amitabh Kant. 23. What three questions must all economic systems answer? A) When will it happen? will it happen? why will it happen?. B) -what goods and services will be produced? -how will the goods and services be produced? -who will receive the goods and services produced?. C) Who will do it? how will it happen? does it actually happen?. D) None of above. Show Answer Correct Answer: B) -what goods and services will be produced? -how will the goods and services be produced? -who will receive the goods and services produced?. 24. This is the other term for environmental analysis. A) Industry analysis. B) SWOT analysis. C) PESTEL analysis. D) Business analysis. Show Answer Correct Answer: C) PESTEL analysis. 25. "the world is constantly changing" what does this mean? A) More and more jobs are being available or fulfilled or are becoming distant from society. B) There are no more jobs available and they are all taken and done. C) There are heaps of options in society for everyone. D) Everyone has to work as the same job all day everyday. Show Answer Correct Answer: A) More and more jobs are being available or fulfilled or are becoming distant from society. 26. Milling lumber into plywood is an example of what economic activity? A) Primary. B) Secondary. C) Quaternary. D) Tertiary. Show Answer Correct Answer: B) Secondary. 27. Mario owns his own frozen yogurt shop but he is required by law to pay his workers a minimum wage and he must provide health insurance to his full-time employees. What type of economic system does Mario live in? A) Market System. B) Mixed System. C) Traditional System. D) Command System. Show Answer Correct Answer: B) Mixed System. 28. Who was nominated to the full time membership of Niti Aayog? A) Varun Agrawal. B) Ramesh Chand. C) Raghuram Rajan. D) None of the above. Show Answer Correct Answer: B) Ramesh Chand. 29. The financial sector can be described as ..... A) Banks that use the deposits collected in order to help businesses grow. B) Financial intermediaries that collect deposits and invest in the growth of businesses. C) Financial intermediaries that allow consumers to open savings accounts. D) Banks that charge interest on loans that are offered to consumers. Show Answer Correct Answer: B) Financial intermediaries that collect deposits and invest in the growth of businesses. 30. Good whose demand curve slopes upwards because the income effect is larger than the substituition effect is called A) 1.giffen good. B) 2.complementary goods. C) 3.precious goods. D) 4.none of the above. Show Answer Correct Answer: A) 1.giffen good. 31. What type of policy is the use of interest rates to control the economy? A) Demand side policy. B) Fiscal policy. C) Insurance policy. D) Monetary policy. Show Answer Correct Answer: D) Monetary policy. 32. A disadvantage of a sole proprietorship is A) Unlimited liability. B) Double taxation of earnings. C) That the owner must share profits with others. D) Difficulty starting the business. Show Answer Correct Answer: A) Unlimited liability. 33. Which is NOT an example of UNETHICAL decision making by firms? A) Firm exploiting poor environmental laws in developing country. B) Qantas give passengers option to pay for the CO2 emissions. C) Volkswagen cheated fuel emission tests, mislead consumers. D) Business exploiting cheap labour in developing countries. Show Answer Correct Answer: B) Qantas give passengers option to pay for the CO2 emissions. 34. The point where supply and demand are equal. A) Scarcity. B) Trade-off. C) Services. D) Market Price. Show Answer Correct Answer: D) Market Price. 35. Which type of economy has the government making all decisions? A) Market. B) Mixed. C) Traditional. D) Command. Show Answer Correct Answer: D) Command. 36. Factors that make it difficult for new firms to enter a market are called A) Monopolistic Outlook. B) Factors of production. C) Limited supply. D) Barriers to entry. Show Answer Correct Answer: D) Barriers to entry. 37. Ownership and management are separate A) Sole Proprietorship. B) Partnership. C) Partnership and Corporation. D) Corporation. Show Answer Correct Answer: D) Corporation. 38. Which government tax provides free healthcare to Australians? A) HBF. B) Medibank. C) Medicare. D) Health tax. Show Answer Correct Answer: C) Medicare. 39. GDP, or gross domestic product, measures ..... A) The value of all final goods and services produced. B) An increase in the general price level. C) The percentage of people looking for work that can't find it. D) The economic freedom an economy offers. Show Answer Correct Answer: A) The value of all final goods and services produced. 40. Which type of economy lets the government & private businesses work together in order to make decisions? A) Market. B) Mixed. C) Command. D) Traditional. Show Answer Correct Answer: B) Mixed. 41. When comparing the four main types of business organizations, which protects owners the MOST from personal financial liability due to being sued by a customer? A) Franchise. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: B) Corporation. 42. Disadvantages include double taxation and more government regulation A) Sole Propriotorship. B) Corporation. C) Partnership. D) Franchise. Show Answer Correct Answer: B) Corporation. 43. Of the four factors of production, which of these are not a factor of production? A) Land. B) Capital. C) Development. D) Labour. Show Answer Correct Answer: C) Development. 44. Which of the following is NOT an advantage of starting a business as a partnership? A) More finance can be raised. B) Partners can specialise according to their experience. C) The workload is reduced since it is shared amongst partners. D) Partners may disagree and fall out with each other. Show Answer Correct Answer: D) Partners may disagree and fall out with each other. 45. Anywhere a business exchange takes place. A) Economics. B) Product. C) Market. D) Service. Show Answer Correct Answer: C) Market. 46. What are the factors of production? A) Wants, needs, happiness. B) Resources people use to produce goods and services. C) The factors that go into proudction. D) The way shops are run in order to be successful. Show Answer Correct Answer: B) Resources people use to produce goods and services. 47. Commercial enterprise that dedicates itself to buying already made products and reselling them to make profit? A) Merchandising Business. B) Limited Liability Company. C) Partnership. D) Service Business. Show Answer Correct Answer: A) Merchandising Business. 48. ..... Defined Business Economics in reference with preparation of policies? A) J.B Say. B) Alfred Marshall. C) Walker. D) Joel Dean. Show Answer Correct Answer: D) Joel Dean. 49. Deliberate deception, designed to secure unfair or unlawful gain. A) Cease and desist order. B) Limited warranty. C) Fraud. D) None of above. Show Answer Correct Answer: C) Fraud. 50. . Science of Material Welfare is also known as ..... A) Classical Definition. B) Neo-classical Definition. C) None of the above. D) None of above. Show Answer Correct Answer: B) Neo-classical Definition. 51. The core problem of economic study is? A) Money. B) Scarcity. C) Allocation. D) Production. Show Answer Correct Answer: B) Scarcity. 52. Which of the following is the best example of a business's economic decision? A) Hiring part-time employees to save on costs. B) Endorsing an independent candidate in state elections. C) Updating directions to your office on the company website. D) Following up with a customer after she exchanged an item. Show Answer Correct Answer: A) Hiring part-time employees to save on costs. 53. Things that add comfort and pleasure to your life. A) Consumer. B) Services. C) Economic System. D) Wants. Show Answer Correct Answer: D) Wants. 54. Which is not a likely disadvantage of a small firm? A) Higher costs. B) Difficulty attracting quality staff. C) Vulnerability to competition (especially from larger companies). D) Lower overall wage costs. Show Answer Correct Answer: D) Lower overall wage costs. 55. Which of the following is not a factor of production: A) Land. B) Income. C) Labour. D) Capital. Show Answer Correct Answer: B) Income. 56. An Economy in which the resources are owned and controlled by the people of the country. A) Market Economy. B) Producers. C) Mixed Economy. D) Supply. Show Answer Correct Answer: A) Market Economy. 57. A Limited liability company A) Combines the best features of a partnership and corporation. B) Is a business coming together for a limited time. C) Is a company where owners have unlimited liability. D) None of above. Show Answer Correct Answer: A) Combines the best features of a partnership and corporation. 58. In a free market economy the allocation of resources is determined by ..... A) Consumer preferences. B) The level of profits of firms. C) Voting done by consumers. D) A central planning authority. Show Answer Correct Answer: A) Consumer preferences. 59. What do we do when we invest? A) We save something. B) We borrow something. C) We spend something. D) None of above. Show Answer Correct Answer: C) We spend something. 60. What is the fundamental problem of every society? A) Market fluctuation. B) Scarcity. C) Labor costs. D) Economic interdependence. Show Answer Correct Answer: B) Scarcity. ← PreviousNext →Related QuizzesEconomy QuizzesGeneral Knowledge QuizzesBusiness Economics Quiz 1Business Economics Quiz 2Business Economics Quiz 3Business Economics Quiz 4Business Economics Quiz 5Business Economics Quiz 6Business Economics Quiz 8Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books