This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 8 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is the most common form of business organization? A) Franchise. B) Corporation. C) Sole proprietorship. D) Partnership. Show Answer Correct Answer: C) Sole proprietorship. 2. When the TU is maximum then MU is? A) Zero. B) Negative. C) Both. D) None. Show Answer Correct Answer: A) Zero. 3. List TWO arguments in favour of free trade. A) Economy, subsidies. B) Employment, tax. C) Choice, innovation. D) Cycle, monopoly. Show Answer Correct Answer: C) Choice, innovation. 4. Minority, women, and technology rates in the workforce is A) Go patriots. B) Decreasing. C) Increasing. D) Staying the same. Show Answer Correct Answer: C) Increasing. 5. The four influences on the way people work are: A) Technology, communications, outsourced labour and casualisation. B) Automation, casualisation, scarcity and outsourced labour. C) Scarcity, demand, technology and redundancy. D) None of above. Show Answer Correct Answer: A) Technology, communications, outsourced labour and casualisation. 6. Adam smith book "An Enquiry Into the Nature and Causes of Wealth of Nations" was published in A) 1930. B) 1874. C) 1776. D) 1576. Show Answer Correct Answer: C) 1776. 7. The circular flow model of a market economy shows ..... A) How many firms can support the needs of how many households. B) The interactions between households and firms in the free market. C) What inputs are required for what outputs. D) How profits are made. Show Answer Correct Answer: B) The interactions between households and firms in the free market. 8. ..... is the description of how consumers allocate income among different goods and services to maximise their well being. A) 1.theory of consumer behavior. B) 2.consumer preferences. C) 3.consumer choices. D) 4.none of the above. Show Answer Correct Answer: A) 1.theory of consumer behavior. 9. What factor of production is an entrepreneur? A) Capital. B) Enterprise. C) Labour. D) Land. Show Answer Correct Answer: B) Enterprise. 10. Requirement that an owner is personally and fully responsible for all losses and debts of the business A) Limited liability. B) Depreciation. C) Principal. D) Unlimited liability. Show Answer Correct Answer: D) Unlimited liability. 11. In which economic system is profit incentive to innovate? A) Mixed. B) Market. C) Command. D) Traditional. Show Answer Correct Answer: B) Market. 12. What kind of business specializes in performing services for the consumers? A) Corporation. B) Hybrid Business. C) Service Business. D) Partnership. Show Answer Correct Answer: C) Service Business. 13. When demand is perfectly inelastic, an increase in price will result in: A) 1.A decrease in total revenue. B) 2.An increase in total revenue. C) 3.No change in total revenue. D) 4.A decrease in quantity demanded. Show Answer Correct Answer: B) 2.An increase in total revenue. 14. Basic economic problems exist because of A) Scarcity. B) Capital resources. C) Economic resources. D) Needs. Show Answer Correct Answer: A) Scarcity. 15. Veterinary Practices are often owned by two or more Vets. This is known as a A) Partnership. B) Franchise. C) Limited Company. D) Sole Trader. Show Answer Correct Answer: A) Partnership. 16. Micro economics theory studies how a free enterprise economy determines: A) The price of goods. B) The price of services. C) The price of economy resources. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Relationship between the amount of a resource that is available and the price. A) Demand. B) Supply. C) Market. D) Inflation. Show Answer Correct Answer: B) Supply. 18. A Limited liability partnership: A) Have a board of directors. B) Have stock. C) Have just two owners. D) Have silent partners who cannot lose more than they invested. Show Answer Correct Answer: D) Have silent partners who cannot lose more than they invested. 19. Monopolies are good because A) Options are reduced, making decisions easier. B) Forces other firms to quit. C) Prices are higher. D) They are regulated by the government. Show Answer Correct Answer: A) Options are reduced, making decisions easier. 20. The government plans how to use resources to make goods and services. A) Mixed Economy. B) Command Economy. C) Market Economy. D) Traditional Economy. Show Answer Correct Answer: B) Command Economy. 21. Find the number of units X that produce maximum revenueR=800x-0.2x2 A) 200 unit. B) 2ooo unit. C) 300 unit. D) 3000 unit. Show Answer Correct Answer: B) 2ooo unit. 22. Fiscal policy involves increases or decreases in: A) The money supply. B) Interest rates. C) Government spending and taxes. D) Exports and imports. Show Answer Correct Answer: C) Government spending and taxes. 23. Sara's Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business? A) Corporation. B) Partnership. C) Sole proprietorship. D) None of above. Show Answer Correct Answer: C) Sole proprietorship. 24. The wish to have something is ..... A) Desire. B) Want. C) Need. D) Demand. Show Answer Correct Answer: A) Desire. 25. The best definition of economics A) How businesses maximize profits. B) How money is used. C) Hows choices are made under conditions of scarcity. D) Hows goods are services are produced. Show Answer Correct Answer: C) Hows choices are made under conditions of scarcity. 26. Economic growth would most likely result from- A) Decreased trade. B) Increased employment. C) Decreased sales of stock. D) Increased productivity. Show Answer Correct Answer: D) Increased productivity. 27. Advantages of this type of business include:selling stock to raise money, limited liability. A) Corporation. B) Sole Proprietorship. C) Franchise. D) Partnership. Show Answer Correct Answer: A) Corporation. 28. Who expressed the view that "Economics is neutral between end" ? A) Robbins. B) Marshall. C) Pigou. D) Adam smith. Show Answer Correct Answer: A) Robbins. 29. An expansionary period in the business cycle is distinguished by- A) Low unemployment. B) High inflation. C) Declining sales. D) Fewer excise taxes. Show Answer Correct Answer: A) Low unemployment. 30. Funds left over after all of the firm's expenses, including taxes, are subtracted from its sales A) Cash flow. B) Partnership. C) Net income. D) Proprietorship. Show Answer Correct Answer: C) Net income. 31. The following are causes of shift in demand EXCEPT the one: A) 4. change in prices of substitutes. B) 3.change in fashion. C) 1.change in income. D) 2.change in price. Show Answer Correct Answer: D) 2.change in price. 32. This acts like a fire or a driving force that make every business successful. A) Strategies. B) Principles. C) Tools. D) Techniques. Show Answer Correct Answer: B) Principles. 33. A science that examines how goods and services are produced, sold, and used is called ..... A) Chemistry. B) Social Studies. C) Biology. D) Economics. Show Answer Correct Answer: D) Economics. 34. Money that a business has left over after all the expenses and costs of running the business are paid. A) Economics. B) Capitalism. C) Profit. D) Service. Show Answer Correct Answer: C) Profit. 35. "Economics is the study of mankind in the ordinary business of life" . This definition was given by A) Adam Smith. B) Lionel Robbins. C) Alfred Marshall. D) Samuelson. Show Answer Correct Answer: C) Alfred Marshall. 36. The slope of indifference curve is equal to A) Price ratio. B) Marginal opportunity cost. C) Marginal rate of substitution. D) All of these. Show Answer Correct Answer: C) Marginal rate of substitution. 37. Who appoints the Vice Chairman of Niti Aayog? A) Prime Minister. B) President of India. C) Chief Justice of the supreme court. D) None of the above. Show Answer Correct Answer: A) Prime Minister. 38. The central question in economics is how to: A) Deal with the problem of scarcity. B) Change government economic policy. C) Change people's wants to match their needs. D) Manage money and become wealthy. Show Answer Correct Answer: A) Deal with the problem of scarcity. 39. If a business conducts a SWOT analysis to decide whether or not to expand, which of the following would be categorized as an "O" ? A) New competition could enter the market. B) Money is available for the expansion. C) There is a potential for increased profits. D) Company expenses have increased. Show Answer Correct Answer: C) There is a potential for increased profits. 40. "Economics is the oldest of the arts, newest of the sciences, indeed the Queen WsociaJ sciences" . This is remarked by A) Jacob Viner. B) Samuelson. C) Haberler. D) Hicks. Show Answer Correct Answer: B) Samuelson. 41. Corporation that has manufacturing or service operations in a number of countries A) Consumer cooperative. B) Interest. C) Multinational. D) Sole proprietorship. Show Answer Correct Answer: C) Multinational. 42. Change in consumption of a good resulting from increase in purchasing power with relative price held constant A) 1.substitution effect. B) 2.income effect. C) 3.both 1 & 2. D) 4.none of the above. Show Answer Correct Answer: B) 2.income effect. 43. Business combination of firms involved in differentsteps of manufacturing or marketing A) Depreciation. B) Net income. C) Multinational. D) Vertical merger. E) Horizontal merger. Show Answer Correct Answer: D) Vertical merger. 44. A buyer's willingness and ability to pay a price for a specific quantity of a good or service. A) Demand. B) Supply. C) Market. D) Inflation. Show Answer Correct Answer: A) Demand. 45. Markets like automobiles, cell phones, film production studios, and internet providers are examples of which market structure? A) Monopolistic competition. B) Oligopoly. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 46. The market price for a product is determined at a point where ..... A) Demand exceeds supply. B) Supply exceeds demand. C) Supply equals demand. D) There is both a shortage and surplus. Show Answer Correct Answer: C) Supply equals demand. 47. Which brand of drinks may be a very good substitute for Coca-Cola? A) 7 Up. B) RC. C) Pepsi. D) Mirinda. Show Answer Correct Answer: C) Pepsi. 48. A business that creates its own plan to expand its economic growth. A) Scalability. B) Big Idea. C) Autonomy. D) Profitability. Show Answer Correct Answer: B) Big Idea. 49. If quantity demanded is completely unresponsive to changes in price, demand is: A) 4.Perfectly inelastic. B) 1.Inelastic. C) 2.Unit elastic. D) 3.Elastic. Show Answer Correct Answer: A) 4.Perfectly inelastic. 50. Which factor does not affect the demand for labour? A) Demand for a product. B) Productivity of labour. C) Migration. D) Availability of substitutes. Show Answer Correct Answer: C) Migration. 51. What is inflation? A) When the economy is doing well. B) A sustained increase in the general price level of goods and services in an economy over a period of time. C) When Coles and Woolworths increase the price of some goods. D) When you get a high power bill. Show Answer Correct Answer: B) A sustained increase in the general price level of goods and services in an economy over a period of time. 52. Which of the following is a characteristic of a command economy? A) Consumers have few, if any, choices in the market place. B) Little government intervention. C) Also, called "capitalist" economy. D) Resources are owned by individuals. Show Answer Correct Answer: A) Consumers have few, if any, choices in the market place. 53. Scarcity is defined as a limited supply of resources and ..... A) Unlimited wants for available resources. B) Unlimited resources. C) Limited resources. D) Limited wants for those resources. Show Answer Correct Answer: A) Unlimited wants for available resources. 54. Unemployment 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: C) The percentage of people looking for work that can't find it. 55. The difference between the income earned and the expenses incurred by a business during a specific period of time is called ..... A) Costs. B) Profit. C) Expenses. D) Sales. Show Answer Correct Answer: B) Profit. 56. The economy is the total of all activities for the purpose of ..... A) Producing, marketing and selling goods and services in a country. B) Creating, designing and exploring goods and services in a country. C) Producing, distributing and consuming goods and services in a country. D) Producing, distributing and selling foods and services in a country. Show Answer Correct Answer: C) Producing, distributing and consuming goods and services in a country. 57. A level of material comfort measured by the goods, services, and luxuries available A) Standard of expense. B) Standard of cost. C) Standard of living. D) None of above. Show Answer Correct Answer: C) Standard of living. 58. Think tank of government of India that replaced the planning commission. A) Niti dharma. B) Niti Shashan. C) Niti Aayog. D) None of the above. Show Answer Correct Answer: C) Niti Aayog. 59. Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. A) Franchise. B) Corporation. C) Sole Propriotorship. D) Partnership. Show Answer Correct Answer: B) Corporation. 60. What is a standard of living? A) The amount of food available to a group of people. B) The amount of electricity available to a group of people. C) Level of wealth and resources available to a certain socioeconomic class in a certain geographic area. D) The average amount of money available to a group of people. Show Answer Correct Answer: C) Level of wealth and resources available to a certain socioeconomic class in a certain geographic area. ← 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 7Business Economics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books