This quiz works best with JavaScript enabled. Home > General Knowledge > Economy > Business > Business Economics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Economics Quiz 9 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a natural resource used to produce a hamburger? A) Cheese. B) Ketchup. C) Cow. D) Dough for the Bun. Show Answer Correct Answer: C) Cow. 2. Which of the following is the disadvantage for a market economy? A) Some individuals needs may not be meet. B) Little government intervention. C) Great variety of goods or services. D) Price are determined by market forces (supply and demand). Show Answer Correct Answer: A) Some individuals needs may not be meet. 3. How marketing built Lego into the world's favourite toy brand A) Microeconomics. B) Macroeconomics. C) Business news. D) Economic news. Show Answer Correct Answer: C) Business news. 4. MONOPOLY REFERS TO A) FEW. B) HUGE. C) MANY. D) ONE. Show Answer Correct Answer: D) ONE. 5. Scarcity is a problem A) Measured by the amount of goods available. B) Because human wants are unlimited while resources are limited. C) Of the poor, but not the rich. D) Only in industrialized economies. Show Answer Correct Answer: B) Because human wants are unlimited while resources are limited. 6. Disadvantages of this type of business include:company is controlled by shareholders rather than original owners, must publish accounts, and is difficult to start. A) Partnership. B) Franchise. C) Sole Trader. D) Limited Company. Show Answer Correct Answer: D) Limited Company. 7. When demand is higher than the available resources. A) Factors of Production. B) Scarcity. C) Market. D) Capitalism. Show Answer Correct Answer: B) Scarcity. 8. Socialist economy is characterised by- A) Secondary role of price mechanism. B) Relative equality of income. C) Selective production of goods. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Kenneth needed a new shirt for the football game this Friday. He went to the mall and purchased a shirt from H & M. Which market does Kenneth receive his wages to purchase the shirt? A) Household. B) Firms. C) Factor market. D) Product market. Show Answer Correct Answer: C) Factor market. 10. The business sector can be described as ..... A) Producers that provide goods and services to satisfy the needs and wants of households. B) Consumers that are working in the business sector to earn money. C) Consumers that purchase goods and services for the business sector. D) Producers that provide goods and services to consumers in order to make a profit. Show Answer Correct Answer: A) Producers that provide goods and services to satisfy the needs and wants of households. 11. The Central Economic problem is that of- A) Allocating the scarce recourse in such a manner that society's unlimited wants are satisfied as far as possible. B) Giving jobs to poor and backward. C) Guaranteeing that the production occurs in most efficient manner. D) All of above. Show Answer Correct Answer: A) Allocating the scarce recourse in such a manner that society's unlimited wants are satisfied as far as possible. 12. Who among the following would be considered as unemployed? A) An entrepreneur in the process of starting a new business. B) A secretary who has resigned from work & looking at job ads. C) A housewife running 2 internet shops at the same time. D) A graduating student of legal age to work. Show Answer Correct Answer: B) A secretary who has resigned from work & looking at job ads. 13. A major advantage of a ..... is management and training support. A) Corporation. B) Franchise. C) Proprietorship. D) Partnership. Show Answer Correct Answer: B) Franchise. 14. Businesses that produce (not just sell) in more than one country; large businesses with a home base in one country but operate partially or wholly in other countries. A) Microeconomics. B) Globalisation. C) Macroeconomics. D) Multinational Corporations. Show Answer Correct Answer: D) Multinational Corporations. 15. Why Study Economics? A) I have to do it. B) I want to learn about the stock market. C) To learn how to deal with scarcity. D) None of above. Show Answer Correct Answer: C) To learn how to deal with scarcity. 16. A form of business organization with one owner who takes all the risks and all the profit is called- A) Proprietorship. B) Governorship. C) Corporation. D) Partnership. Show Answer Correct Answer: A) Proprietorship. 17. Which of the following definitions best describes an employee? A) They provide financial capital to start a company. B) They earn profits in the form of dividend payments from the firm's profits. C) They have a specific job at the company for which they are paid. D) None of above. Show Answer Correct Answer: C) They have a specific job at the company for which they are paid. 18. This refers to the largest sector in the Philippines. A) Service. B) Agriculture. C) Farming. D) Industry. Show Answer Correct Answer: B) Agriculture. 19. This is needed in every business. Without this, business operations will stagnate. A) Systems. B) Growth. C) Scalability. D) Sustainability. Show Answer Correct Answer: B) Growth. 20. Diffence between expected payoff and actual payoff is called A) 1.deviation. B) 2.standard deviation. C) 3. variability. D) 4.none of the above. Show Answer Correct Answer: A) 1.deviation. 21. What is an entrepreneur? A) A worker in a factory. B) A student in college. C) A leader of a country. D) A person who starts a new business. Show Answer Correct Answer: D) A person who starts a new business. 22. Opportunity Cost is best defined as A) The price you pay to purchase something. B) The value of the next best alternative that is given up due to the choice you made. C) The benefit you gain by making a decision. D) The amount of debt you take on by making a decision. Show Answer Correct Answer: B) The value of the next best alternative that is given up due to the choice you made. 23. According to Robbins "means" are A) Scarce. B) Unlimited. C) Undefined. D) All of these. Show Answer Correct Answer: A) Scarce. 24. Water and air are examples of ..... resources, while people are considered to be ..... resources. A) Natural; human. B) Mental; natural. C) Capital; human. D) Physical; mental. Show Answer Correct Answer: A) Natural; human. 25. Resources such as buildings, equipment, and factories. A) Capital. B) Entrepreneurship. C) Natural Resources. D) Human Resources. Show Answer Correct Answer: A) Capital. 26. It illustrates how market forces determine the overall shape of the economy. A) Economic Analysis. B) Circular Flow Model. C) SWOT Analysis. D) Porter's 5 Forces. Show Answer Correct Answer: B) Circular Flow Model. 27. Cardinal approach is related to: A) Indifference curve. B) Equi-marginal utility. C) Law of diminishing returns. D) None of these. Show Answer Correct Answer: B) Equi-marginal utility. 28. Hammers, pencils, and computers are examples of ..... A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 29. Determined by subtracting expenses, including taxes, from revenue A) Net income. B) Vertical merger. C) Multinational. D) Merger. E) Depreciation. Show Answer Correct Answer: A) Net income. 30. Assets that provide a flow of money or service that is known with certainity are called A) 1.riskless assets. B) 2.risky assets. C) 3.return assets. D) 4.none of the above. Show Answer Correct Answer: A) 1.riskless assets. 31. Easiest type of business to start A) Corporation. B) Sole Proprietorship. C) Partnership. D) Corporation and Partnership. Show Answer Correct Answer: B) Sole Proprietorship. 32. ..... shows various combinations of two products that give same amount of satisfaction: A) Indifference curve. B) ISO cost curve. C) Marginal utility curve. D) ISO quant. Show Answer Correct Answer: A) Indifference curve. 33. What is economics? A) The study of unemployment. B) The study of how limited resources are used to meet the unlimited wants of people in society. C) The study of GDP. D) The study of the Australian economy. Show Answer Correct Answer: B) The study of how limited resources are used to meet the unlimited wants of people in society. 34. The main objective of TRYSEM was A) To train rural youth for self-employment. B) To train urban youth for self-employment. C) Both of the above. D) None of these. Show Answer Correct Answer: A) To train rural youth for self-employment. 35. Public utilities are an example of? A) A competitive market. B) Monopolistic power. C) Oligopoly. D) Natural Monopoly. Show Answer Correct Answer: D) Natural Monopoly. 36. An advantage that occurs when a business is able to offer the same quality product as its competitors, but at a lower price. A) Differentiation. B) Cost leadership. C) Alliance. D) Defensive strategy. Show Answer Correct Answer: B) Cost leadership. 37. Which type of market structure has many producers (companies) that sell very similar products and have almost no control over price? A) Competitive markets. B) Oligopoly. C) Monopoly. D) None of above. Show Answer Correct Answer: A) Competitive markets. 38. In the circular flow, what do individuals get in return for their labour? A) Salary. B) Income. C) Money. D) Wage. Show Answer Correct Answer: B) Income. 39. Change in consumption of a good associated with change in its price with level of utility held constant is called A) 1.substitution effect. B) 2.income effect. C) 3.both 1 & 2. D) 4.none of the above. Show Answer Correct Answer: A) 1.substitution effect. 40. Disadvantages for this type of business include:owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability. A) Limited Company. B) Partnership. C) Sole Trader. D) Franchise. Show Answer Correct Answer: C) Sole Trader. 41. In which category would I find the highest prices? A) Oligopoly. B) Perfect competition. C) Monopoly. D) Sole proprietor. Show Answer Correct Answer: C) Monopoly. 42. Form of business organization recognized by law as a separate legal entity having all the rights of an individual A) Multinational. B) Corporation. C) Sole proprietorship. D) Interest. Show Answer Correct Answer: B) Corporation. 43. An Economy in which goods and services are produced. It is used in countries that are less developed and are not yet participating in the global Economy. A) Scarcity. B) Demand. C) Traditional Economy. D) Capitalism. Show Answer Correct Answer: C) Traditional Economy. 44. Businesses conspiring among themselves to set the prices of competing products at a higher level A) Trust. B) Price fixing. C) Oligopoly. D) Market sharing. Show Answer Correct Answer: B) Price fixing. 45. Negotiation by a labor union with management over issues such as pay, working hours, health care coverage, and vacation A) Collective bargaining. B) Principal. C) Net income. D) Cash flow. Show Answer Correct Answer: A) Collective bargaining. 46. Globalisation results in ..... A) Lesser competition among producers. B) Greater competition among producers. C) No change in competition among producers. D) None of the above. Show Answer Correct Answer: B) Greater competition among producers. 47. What is an economic system? A) A type of system in economy. B) A system in economics which is given out due to distribution of economy and society. C) A system which is within a society or a given geographic area. D) A system of production, resource allocation and distribution of goods and services within a society or a given geographic area. Show Answer Correct Answer: D) A system of production, resource allocation and distribution of goods and services within a society or a given geographic area. 48. How do supply and demand influence market price? A) Supply determines market price because the seller sets the price. B) The price is determined by the highest price consumers are willing to pay. C) The price is determined by the lowest price producers are willing to accept. D) The market clearing price is where quantity demanded is equal to quantity supplied. Show Answer Correct Answer: D) The market clearing price is where quantity demanded is equal to quantity supplied. 49. A form of business organization with two or more owners who share the risks and the profits- A) Corporation. B) Proprietorship. C) Wholesale. D) Partnership. Show Answer Correct Answer: D) Partnership. 50. Which form of business is the easiest for beginners? A) Partnership. B) Corporation. C) Sole Proprietorship. D) Merchandising. Show Answer Correct Answer: C) Sole Proprietorship. 51. What occurs when people rely on others to provide the goods and services required for supporting their lives or for convenience? A) Globalisation. B) Transnational Corporations (TNCs). C) Economic Interdependence. D) Corporate Social Responsibility. Show Answer Correct Answer: C) Economic Interdependence. 52. What of the following is a feature of a monopoly? A) Price is set freely by the consumers. B) The product sold is unique. C) There are very few barriers to entry. D) There is plenty of competition. Show Answer Correct Answer: B) The product sold is unique. 53. Which of the following does not suggest a macro approach for India? A) Finding the causes of failure of ABC Ltd. B) Analyse the causes of failure of industry in providing large scale employment. C) Determining the GNP of India. D) Identifying the causes of inflation in India. Show Answer Correct Answer: A) Finding the causes of failure of ABC Ltd. 54. For which of the following type of business, do you think a sole proprietorship form of organisation would be more suitable? A) Legal consultancy. B) Grocery store. C) Internet cafe. D) None of above. Show Answer Correct Answer: B) Grocery store. 55. In economics, the value of the next best alternative is called ..... A) Scarcity. B) Productivity. C) Opprotunity Cost. D) Supply and Demand. Show Answer Correct Answer: C) Opprotunity Cost. 56. Advantages of this type of business include:selling shares to raise money, limited liability. A) Sole Trader. B) Limited Company. C) Franchise. D) Partnership. Show Answer Correct Answer: B) Limited Company. 57. Rational decison making requires that: A) One's choices be arrived at logically and without error. B) One's choices be consistent with one's goals. C) One's choices never vary. D) One make choices that do not involve trade-offs. Show Answer Correct Answer: B) One's choices be consistent with one's goals. 58. Where a business is able to buy new technology and machinery due to it being large A) Purchasing. B) Technical. C) Marketing. D) Managerial. Show Answer Correct Answer: B) Technical. 59. Which one of the following is NOT a supply side policy? A) The government increasing competition in all industries. B) The government reducing import controls. C) The government investing in training and education. D) The government privatising national industries. Show Answer Correct Answer: B) The government reducing import controls. 60. A strategy that businesses often use marketing and some ads are against the competitors. A) Advertising. B) Cost leadership. C) Alliance. D) Defensive strategy. Show Answer Correct Answer: A) Advertising. ← 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books