wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

BUSINESS ECONOMICS II

Total questions: 92

Worksheet time: 2hrs 51mins

Name
Class
Date
1.

What is the goal of a firm?

a)

to make profits

b)

to maximize profits

c)

to maximize revenue

d)

none of the above

2.

MR =

a)

MC

b)

NC

c)

WC

d)

KFC

3.

What is the profit maximizing condition?

a)

MR = D

b)

MR = MC

c)

MC = D

d)

D = Profits

4.

The image above shows a firm making

a)

Economic Profit

b)

Economic loss

c)

Breaking even

d)

Shutting down

5.

Which of the following could attract new firm to join an industry?

a)

Normal profits

b)

Economic losses

c)

Economic profits

d)

Accounting profits

6.

A perfect competitive firm charges a price that is ____________.

a)

different to other firms

b)

higher than other firms

c)

lower than other firms

d)

similar to other firms

7.

What is the goal of a firm?

a)

to make profits

b)

to maximize profits

c)

to maximize revenue

d)

none of the above

8.
Perfect competition involves:
a)
Sellers working together to set prices
b)
A large number of buyers & sellers
c)
Difficulty entering & exiting the market
d)
Little information is available to buyers
9.

Under perfect competition , price is determined at ______

a)

Equilibrium price of the industry

b)

Equilibrium price of the firm

c)

when MC = MR

d)

All of these

10.

Under perfect competition , each firm is a

a)

Price maker

b)

Price taker

c)

Neither a and b

d)

Both a and b

11.

Which market has no competition?

a)

perfect competition

b)

oligopoly

c)

imperfect competition

d)

monopolistic competition

12.
The demand curve for a perfectly competitive firm is:
a)
perfectly inelastic.
b)
perfectly elastic.
c)
downward sloping.
d)
relatively but not perfectly elastic.
13.

Which of the following describes a monopoly firm?

a)

Single seller

b)

Many sellers

c)

Many substitutes

d)

No barrier to entry

14.

If a monopoly firm practices price discrimination the firm will _____________.

a)

earn smaller profit

b)

produce lower quantity than before price discrimination

c)

charge a higher price when demand is inelastic and a lower price when demand is elastic

d)

charge a higher price when demand is elastic and a lower price when demand is inelastic

15.

What is the profit maximizing condition?

a)

MR = D

b)

MR = MC

c)

MC = D

d)

D = Profits

16.

If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then the firm is a

a)

monopolist

b)

oligopolist

c)

perfect competition

d)

monopolistic competition

17.

The demand curve for an individual firm within a perfectly competitive industry is

a)

perfectly elastic

b)

perfectly inelastic

c)

downwards sloping

d)

upwards sloping

18.
Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition? 
a)
In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition. 
b)
In perfect competition there are many firms, but in monopolistic competition there are only a few firms. 
c)
In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product. 
d)
In perfect competition there are few consumers, but in monopolistic competition there are many consumers. 
19.
Monopolistically competitive firms are considered inefficient in allocating society’s resources for which of the following reasons? 
a)
In long-run equilibrium, the marginal benefit exceeds the price charged by the firms. 
b)
In long-run equilibrium, the price is greater than the marginal cost. 
c)
In long-run equilibrium, average total costs are minimized.
d)
In long-run equilibrium, the firm is earning economic profits. 
20.
The graph shows a monopolistically competitive firm:
a)
making a profit in the short-run
b)
incurring a loss in the short-run
c)
making a profit in the long-run
d)
breaking even in the long-run
21.
Which of the following is true of a monopolistically competitive firm in long-run equilibrium? 
a)
The firm produces the allocatively efficient level of output. 
b)
The firm produces an output level that minimizes average total cost. 
c)
The firm produces in the inelastic range of its demand curve. 
d)
The firm is allocatively inefficient, because it produces an output level at which price is greater than marginal cost. 
22.

which one of these is NOT an assumption of the monopolistic competition?

a)

there are many firms

b)

the firms are relatively small

c)

the products the firms supply are indistinguishable

23.

In monopolistic competition...

a)

Allocative efficiency is reached

b)

Productive efficiency is reached

c)

Profit is maximized

d)

All of the answers are correct

24.
a)

Monopoly

b)

Oligopoly

c)

Oligopsony

d)

Monopsony

25.
a)

Profit-Maximizing Price (Pf)

b)

Profit-Maximizing Quantity (Qf)

c)

Equilibrium Price (Pe)

d)

Ultra Price (Up)

26.
a)

Profit-Maximizing Price (Pf)

b)

Profit-Maximizing Quantity (Qf)

c)

Equilibrium Quantity (Qe)

d)

Equilibrium Cost (Ce)

27.
a)

Marginal Revenue = Demand = Average Revenue = Price

b)

Marginal Revenue = Cost = Another Cost = Marginal Cost

c)

Average Revenue = Price = Factor Cost = Profit-Maximizing Quantity

d)

Demand = Supply = Quantity = Price

28.
For an unregulated monopolist, the profit-maximizing quantity will always be:
a)
in the elastic region of the demand curve 
b)
where marginal revenue equals price 
c)
where price equals average total cost 
d)
where the marginal cost curve intersects the demand curve 
29.
In order for a firm to engage in price discrimination, it must be: 
a)
producing in the inelastic portion of its demand curve to raise its price and increase total revenue 
b)
a price taker
c)
able to separate consumers into different groups based on demand elasticities 
d)
experiencing economies of scale in the relevant range of production
30.

Revenue maximization level of output is at

a)

MC = MR

b)

MC = AR

c)

MC = 0

d)

MC = AC

31.

What is not an advantage of a monopoly?

a)

achieving economies of scale

b)

high level of research and development

c)

Producing a greater quantity at profit-maximizing level of output

d)

higher prices and lower output

32.

Which of the following is NOT a major barrier to entry for a monopolist?

a)

control over a key input

b)

patent protection

c)

economies of scale

d)

product differentiation

33.

A single-price monopoly is characterized by a marginal revenue curve that is

a)

upward sloping.

b)

downward sloping.

c)

horizontal.

d)

vertical.

34.

Monopoly power is high when

a)

There are no close substitutes

b)

There are no rivals

c)

There is only a single seller of the product

d)

All of the above

35.

Patent right for invention leads to

a)

Natural monopoly

b)

Fiscal monopoly

c)

Legal monopoly

d)

Technical monopoly

36.

In short run, the monopolists

a)

Incurs a loss

b)

Makes a profit

c)

Break even

d)

Any of the above

37.
a)

A

b)

B

c)

C

d)

D

38.

Which of the following describes a monopoly firm?

a)

Single seller

b)

Many sellers

c)

Many substitutes

d)

No barrier to entry

39.

In the monopoly, the firm's marginal revenue curve is ________, while in a perfectly competitive market, each firm's marginal revenue curve is ________.

a)

downward sloping; horizontal

b)

horizontal; downward sloping

c)

upward sloping; horizontal

d)

downward sloping; upward sloping

40.
Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition? 
a)
In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition. 
b)
In perfect competition there are many firms, but in monopolistic competition there are only a few firms. 
c)
In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product. 
d)
In perfect competition there are few consumers, but in monopolistic competition there are many consumers. 
41.
Monopolistically competitive firms are considered inefficient in allocating society’s resources for which of the following reasons? 
a)
In long-run equilibrium, the marginal benefit exceeds the price charged by the firms. 
b)
In long-run equilibrium, the price is greater than the marginal cost. 
c)
In long-run equilibrium, average total costs are minimized.
d)
In long-run equilibrium, the firm is earning economic profits. 
42.
Which of the following market structures results in allocative efficiency? 
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
43.
Which of the following is true of a monopolistically competitive firm in long-run equilibrium? 
a)
Price equals marginal cost and average total cost. 
b)
Price equals average total cost but is greater than marginal cost. 
c)
Price equals marginal cost and is greater than average total cost. 
d)
The firm earns positive economic profits by producing at minimum average cost. 
44.

The demand curve for a monopolistically competitive firm is downward sloping because:

a)

the products produced by different firms are not identical

b)

there are a small number of firms in the market

c)

the product is produced by using scarce resources

d)

it is easy for firms to enter or exit the market

45.
The graph shows a monopolistically competitive firm:
a)
making a profit in the short-run
b)
incurring a loss in the short-run
c)
making a profit in the long-run
d)
breaking even in the long-run
46.
In the long-run, the ATC will be tangent to the demand curve at:
a)
Q1
b)
Q2
c)
Q3
d)
none of the above
47.
Which of the following is true of a monopolistically competitive firm in long-run equilibrium? 
a)
The firm produces the allocatively efficient level of output. 
b)
The firm produces an output level that minimizes average total cost. 
c)
The firm produces in the inelastic range of its demand curve. 
d)
The firm is allocatively inefficient, because it produces an output level at which price is greater than marginal cost. 
48.
A monopolistically competitive firm advertises in order to:
a)
shift the demand curve for its product to the left 
b)
make its product more similar to its competitors’ 
c)
reduce the industry’ s barriers to entry 
d)
make the demand for its product less price elastic 
49.

One of the assumptions of monopolistic competition is that it is made of a ...... number of firms

a)

large

b)

small

c)

moderate

50.

In the short run, in monopolistic competition, the producers produce at a level of output that is...

a)

productively efficient

b)

allocatively efficient

c)

profit maximizing

51.

The product differentiation is also known as....

a)

price competition

b)

non-price competition

c)

economics of scale

d)

price discrimination

52.

In the long run, in monopolistic competition, the producers will produce at a level of output .....

a)

that is socially optimum

b)

where AC is at a minimum

c)

where MC=MR

53.

In the long run all firms are making

a)

abnormal profit

b)

normal profit

c)

losses

54.

Short-run losses encourage firms to...

a)

enter the industry

b)

leave the industry

c)

stay in the industry

55.

What differs monopolistic competition from perfect competition?

a)

product differentiation

b)

long-run inefficiency

c)

barriers to entry

d)

the short-run profits and losses possibility

56.

In monopolistic competition, the demand curve for a firm is....

a)

relatively elastic

b)

relatively inelastic

c)

unit elastic

57.

Which one of the following statements is not a characteristic of monopolistic competition?

a)

Ease of entry into the industry

b)

Product differentiation

c)

A relatively large number of sellers

d)

A homogenous product

58.

In long-run equilibrium in a monopolistically competitive market, firms typically:

a)

earn a normal profit

b)

charge a price equal to marginal cost

c)

earn an above-normal profit

d)

charge a price equal to marginal revenue

59.

What type of products will firms produce in monopolistic competition?

a)

Firms produce significantly differentiated products

b)

Firms produce slightly differentiated products

c)

Firms produce homogenous products with one modification

d)

Firms produce a variety of different products

60.
a)

A

b)

B

c)

C

d)

D

61.

The monopolistically competitive firm's profit-maximising output in the short run will be

a)

0e

b)

0f

c)

0g

d)

0h

62.

In the short run, monopolistically competitive firm will make

a)

a per unit loss of cd

b)

a per unit loss of bd

c)

a per unit profit of bc

d)

a per unit profit of ad

63.

Which of the following best describes an oligopistic market?

a)

Many sellers with identical barriers to entry

b)

Many sellers, each with a clearly differentiated product, and no barriers to entry

c)

A few competing sellers with similar products and high barriers to entry

d)

A few competing sellers of identical products and no barriers to entry

e)

No competition among sellers and high barriers to entry

64.

The demand curve for a monopolistically competitive firm is downward sloping because

a)

there are a large number of firms

b)

the product is produced by using scarce resources

c)

the products produced by different firms are not identical

d)

it is easy for firms to enter or exit the market

e)

the marginal cost rises as output produced increases

65.

What are the three parts of product cost?

a)

direct materials

b)

direct labor

c)

manufacturing overhead

d)

all of the above

66.

It includes all other costs incurred in production but do

not become part of the product.

a)

Manufacturing overhead

b)

Direct labor

c)

Direct materials

d)

all of the above

67.

Which of the following best describes an oligopoly?

a)

many monopolistically competitive firms

b)

a few firms sharing monopoly power

c)

a former monopoly that has been broken up by the government

d)

a government-granted franchise or monopoly

68.

Collusion most frequently occurs in industries that are

a)

oligopolistic

b)

monopolistically competitive

c)

monopolistic

d)

perfectly competitive

69.

If oligopolists engagein collusion and successfully form a cartel, the market outcome is

a)

the same as if it were served by a monopoly

b)

The same as if it were served by competitive firms

c)

The same as if it were served by competitive firms

d)

Known as Nash equilibrium

70.

When an oligopolit individually chooses its level of production to maximize its profits, it produces an output that is

a)

More than the level produced by a monopoly and less than the level produced by a competitive market

b)

Less than the level produced by a monopoly and more than the level produced by a competitive market

c)

Less than the level produced by a monopoly and more than the level produced by a competitive market

d)

Less than the price charged by either a monopoly of a competitive market

71.

An oligopoly is defined as a type of

market structure where ____ firms have

market control

a)

one

b)

many

c)

three or more

d)

two or more

72.

How many firms are there in an oligopoly?

a)

Many

b)

Few

c)

One

d)

Eight

73.

Although it ignores the time value of money, what is the most common method used in practice for capital budgeting?

a)

internal rate of return

b)

net present value

c)

payback

d)

accounting rate of return

74.

Which of the following is always true with regard to the net present value (NPV) approach?

a)

The NPV and the IRR approaches will always rank projects in the same order

b)

The NPV and Payback approaches will always rank projects in the same approaches

c)

If a project is found to be acceptable under the NPV approach, it would also be acceptable under the internal rate of return (IRR) approach

d)

If a project is found to be acceptable under the NPV approach, it would also be acceptable under the payback approach

75.
Which of the following statements best describe the IRR?
a)
The rate of return on the investment calculated based on cash inflows and outflows.
b)
The rate of return on the investment calculated based on investment capital and profit generate.
c)
The minimum rate of return required for the business to be profitable.
d)
The maximum rate of return that business could generate.
76.

This is a form of analysis defined by calculating how long it will take for the asset to "earn back" the money you invested in purchasing it.

a)

internal rate of return

b)

net present value

c)

payback method analysis

d)

tax accounting

77.

This answers the question, "How much is my asset worth right now?"

a)

net present value

b)

internal rate of return

c)

discount rate

d)

capital budgeting

78.

When selecting the best project from a group of mutually exclusive projects, you should choose the project with the highest ________.

a)

net present value

b)

internal rate of return

c)

accounting rate of return

d)

payback period

79.

A significant advantage of the net present value is that it _______.

a)

fully considers time value of money

b)

takes into consideration the yield to maturity

c)

usus profit in the analysis

d)

none of the above

80.

You are analyzing two mutually exclusive projects of similar size and have determined the following data. Both projects have 5-year lives.


Based on the above details, which of the two projects would you accept?

a)

Project A because it has the shortest payback period.

b)

Both as they both have positive NPV.

c)

Project B and reject Project A based on their NPV.

81.

The advantage of the payback period is :

a)

Adjustment for uncertainty of early CF

b)

It is simple to calculate and use

c)

Does not discount CF

d)

None of the above

82.

___________ is the planning process used to determine whether an organization long term investments

a)

Capital Rationing

b)

Capital Budgeting

c)

Cost of Capital

d)

Leverage

83.

Which of the following projects has the shortest payback period?

a)

B

b)

A

84.

Which of the following projects has the highest IRR?

a)

B

b)

A

85.

Marginal cost is _____ cost.

a)

Fixed

b)

Variable

c)

Semi-Variable

d)

Stepped

86.

Contribution is fixed cost + _____.

a)

sales

b)

variable

c)

profit

d)

margin of safety

87.

BEP is a point where there,s no _____ no _____.

a)

fixed cost, variable cost

b)

profit, loss

c)

sales, contribution

d)

none of the above

88.
Short run marginal costs eventually increase because of the effects of:
a)
increasing marginal product
b)
diminishing marginal product
c)
increasing fixed costs
d)
diseconomies of scale
89.

A movie theater sells its tickets at lower prices to students and seniors. This is an example of:

a)

Prompt payment

b)

Price discrimination

c)

Price skimming

d)

Stability pricing

90.

Which pricing strategy involves setting prices based on the costs for producing, distributing and selling the product plus a fair rate of return for its effort and risk?

a)

Customer Value-Based Pricing

b)

Competition-Based Pricing

c)

Cost-Based Pricing

d)

Dynamic Pricing

91.

Which of the following Pricing Strategies describes when you take the cost of producing a good and add on a percentage of profit to arrive at the selling price?

a)

Cost-plus pricing

b)

Low pricing

c)

Promotional Pricing

d)

High pricing

92.

What are 3 things pricing may be based on?

a)

Product, promotion, and service

b)

Cost, Demand, and Competition

c)

Cost, Demand, and Customers

d)

Price, Promotion, Professionalism

Similar Resources on Wayground

Nervous system: question bank

90 questions

Nervous system: question bank

quiz

Worksheet

•

12th Grade - University

MARLAW TEST 2

94 questions

MARLAW TEST 2

quiz

Worksheet

•

University

Art App

92 questions

Art App

quiz

Worksheet

•

University

FR PJOK TAHUN 2020 TAHAP 4

95 questions

FR PJOK TAHUN 2020 TAHAP 4

quiz

Worksheet

•

University

ictan4

87 questions

ictan4

quiz

Worksheet

•

University

Art movement 2

96 questions

Art movement 2

quiz

Worksheet

•

University

Kiến thức về Kiến trúc Máy Tính

91 questions

Kiến thức về Kiến trúc Máy Tính

quiz

Worksheet

•

University

Try OUT UP Terbaru

90 questions

Try OUT UP Terbaru

quiz

Worksheet

•

University