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Business Economics

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

Which of the following is a microeconomics statement ?

a)

the real domestic output increased by 2.5 % last year

b)

unemployment was 9.8% of the labour force last year

c)

the price of wheat determines its demand

d)

the general price level increased by 4% last year

2.

Which theory is generally included under micro economics?

a)

price theory

b)

income theory

c)

employment theory

d)

trade theory

3.

What theory is generally included under micro economics ?

a)

price theory

b)

income theory

c)

employment theory

d)

trade theory

4.

What are the macro economics system ----

a)

capitalistic

b)

socialism

c)

mixed

d)

all the above

5.

------- have exchange value and their ownership rights can be established and exchange

a)

goods

b)

service

c)

markets

d)

revenues

6.

The actual value for elasticity of the demand of a product or service rages from

a)

zero to infinity

b)

one to infinity

c)

zero to one

d)

none of the above

7.

Movement along the demand curve shows

a)

expansion and contraction of demand

b)

expansion of demand

c)

contraction of demand

d)

none of the above

8.

The basic for the law of demand is related to -----

a)

law of diminishing marginal utility

b)

law of supply

c)

law of equi-marginal utility

d)

gossen's law

9.

Elasticity of demand is equal to one indicates

a)

unitary elasticity demand

b)

perfectly elasticity demand

c)

perfectly inelasticity demand

d)

relatively elasticity demand

10.

Increase in law of demand is caused by

a)

increase in tax

b)

higher subsidy

c)

increase in interest rate

d)

decline in population

11.

Which concept are easily identified and can be traced to a particular product or service

a)

fixed cost

b)

outlay cost

c)

direct cost

d)

past cost

12.

Which cost are the cash payment made by an entrepreneur to the suppliers of the various factor of production

a)

economic cost

b)

accounting cost

c)

future cost

d)

incremental cost

13.

Which cost plays and important role in determining the optimum level of production

a)

price cost

b)

output cost

c)

cost output

d)

both A and B

14.

Which relation between cost and output is technically described as the cost function of mathematically represented as

a)

C=f+q

b)

C=f-q

c)

C=(q)

d)

C= f x q

15.

The short run is a time period in which

a)

all resource are fixed

b)

the level of out put is fixed

c)

the size of the production plant is variable

d)

some resource are fixed and others are variable

16.

Sale forecast

a)

change in sale change in sale mix

b)

cost reduction policies

c)

developing a rational capital expenditure policy

d)

enhancing return on investment

17.

The firm decides the expansion of production capacity

a)

product planning

b)

activity planning

c)

profit planning

d)

target capacity

18.

Firm can decide the dividend to be fixed for their sharehoders

a)

dividend decision

b)

distribution decision

c)

make or buy decision

d)

safety margin

19.

Purpose of profit planning

a)

projected sales of the company

b)

past profit record

c)

present profit record

d)

all the above

20.

Planning guidelines

a)

capital expenditure proposals

b)

change needed in the level of working capital

c)

limits on discretionary expenditure

d)

all the above

21.

Accreditation refers to

a)

marketing assessment

b)

ensuring quality

c)

meeting standards

d)

cost effective care

22.

In which of the following methods of inventory control , is based on the rate of consumption

a)

ABC analysis

b)

HML analysis

c)

FSN analysis

d)

VED analysis

23.

Crashing is

a)

abandoning the project

b)

completing the project with all the possible haste

c)

reduction of duration for a few of the activities

d)

reduction the cost of the project with all needful modifications

24.

Types of cost capital

a)

cost of equity capital

b)

final approval

c)

evaluation

d)

all the above

25.

Types of capital rationing

a)

hard capital rationing

b)

evaluation of projects

c)

establishing priorities

d)

all the above