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Business Economics

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Forward planning goes hand in hand with

a)

decision making

b)

capital 

c)

stock

d)

sales

2.

The famous book on economics “An Enquiry into the Nature and Cause of Wealth of     Nation” was written by 

a)

Marshal

b)

Ricardo

c)

Robins

d)

Adam smith

3.

Wealth definition of economics is given by  

a)

J B Say  

b)

Lionel Robbins  

c)

Adam Smith

d)

Alfred Marshall

4.

If the income elasticity of demand is that one, the good is a

a)

Necessity

b)

Luxury

c)

Substitute

d)

Complement

5.

The income elasticity of demand is negative for a

a)

complement good

b)

normal good

c)

superior good

d)

inferior good

6.

What effect is working when the price of a good falls and consumers tend to buy it instead of other goods.

a)

Income effect

b)

Substitution effect

c)

Price effect

d)

complementary effect

7.

Two goods that are used jointly to provide satisfaction are called

a)

Inferior goods

b)

Normal goods

c)

Complementary goods

d)

Substitute goods

8.

Demand curve slopes downwards because of

a)

The law of diminishing marginal utility

b)

The income effect

c)

Substitution effect

d)

All of the above

9.

If the income and substitution effect of a price increase works in the same direction the good whose price has changed is a

a)

Giffen goods

b)

Inferior goods

c)

Normal goods

d)

Superior one of these

10.

Which one is not a property of isoquant

a)

Downward sloping

b)

Convex

c)

Negative slope

d)

Positive slope