Free Printable BusinessEconomics-29April2025

1.

In Business economics ‘Means’ refers to………….

a)

Human wants

b)

Resources

c)

Both (1) and (2)

d)

Neither (1) nor (2)

2.

Which of the following is an economic activity?

a)

Boy helping his friend to solve puzzle.

b)

Teams playing friendly football match

c)

A teacher teaching to class

d)

Watching Television

3.

The law of Scarcity-

a)

Does not apply to developed and rich countries

b)

Applies only to less developed countries

c)

Implies that the consumers’ want will be satisfied in a socialist economy

d)

Implies that consumers’ want will never be completely satisfied.

4.

What does the scarcity of resource implies…

a)

We must develop way to decrease our individual wants

b)

Not all wants can be satisfied.

c)

Resources can not satisfy any want

d)

Resources are very scarce and shall not be used at all

5.

………..refers to the process of selecting an appropriate alternative that will provide the most efficient means of attaining a desired end, from two or more alternative courses of action

a)

problem solving

b)

Problem analyzing

c)

Managerial expertise

d)

Decision making

6.

Which of the following statement is not correct?

a)

Business Economics refers to the integration of economic theory th business practice

b)

Business Economics is not only valuable to business decision makers, but also useful for managers of ‘not-for-profit’ organisations

c)

Theories of Economics provide the tools which explain various concepts such as demand, supply, costs, price, competition etc

d)

Business Economics is concerned only with Micro Economics

7.

Micro and macro are not two independent approaches to economic analysis but they are complementary to each other.

a)

True

b)

False

c)

PARTLY TRUE

d)

PARTLY FALSE

8.

The study of economic behavior of an individual firm or industry in national economy is called as ……

a)

Micro Economics

b)

Macro Economics

c)

Business Economics

d)

Behavioral Economics

9.

The study of behavior of consumers in the market and the effect of changes in the determinants of demand is called as

a)

Demand analysis

b)

Demand forecasting

c)

Cost analysis

d)

Market analysis

10.

Macro Economics deals with

a)

External value of money

b)

Employment and economic growth

c)

General price level

d)

all of above

11.

If two goods are complementary to each other, cross elasticity demand is said to be "-------------"

a)

Positive

b)

Neutral

c)

Negative

d)

Unitary

12.

Demand Function explain relationship between demand for Commodity and its___________.

a)

Determinants

b)

Elasticity

c)

Only Price

d)

Elements

13.

Opportunity cost can be defined as...

a)

Having fewer resources than needed to fill human wants and needs

b)

A time or set of circumstances that makes it possible to do something

c)

Anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on social media

d)

The loss of other alternatives when one alternative is chosen

14.

Supply represents...

a)

how much of a product or service the market has to offer

b)

how much of a product that the customer wants to buy

c)

how many goods are available for purchase

d)

how much of a product or service that buyers want to sell

15.

A normal good can be defined as one which consumers purchase more of as

a)

prices fall

b)

prices rises

c)

incomes fall

d)

incomes

16.

Cross elasticity of demand for complementary goods is

a)

negative

b)

positive

c)

zero

d)

one

17.

Determinants of Elasticity of Demand

a)

Nature of Commodity

b)

Substitute Goods

c)

Price of Commodity

d)

Use of Commodity

18.

Demand Forecasting is also known as ________Forecasting

a)

Sales

b)

Production

c)

Quantity

19.

demand and supply curve where intersects ?

a)

price > quantity

b)

price < quantity

c)

price = quantity

d)

none

20.

What are the 2 main aims of a business?

a)

To make more money than the competition

b)

Make a profit

c)

To have popular goods or services

d)

Satisfy particular needs and wants

21.

A business plan...

a)

...is the same as a budget

b)

...mainly describes the product

c)

... is a document providing the important details of a business

d)

...shows the business idea of a company

22.

An entrepreneur is

a)

a person who sets up a business.

b)

a person who takes on financial risks in the hope of profit.

c)

a person who is employed at a successful organisation

d)

a person who talks about his/her product interests.

23.

Tick all the Goods

a)

Hair Cut

b)

Nike Sneakers

c)

Halloween Lolly bag

d)

A trip to Sea World

e)

Doctor Who video

24.

To find out trends and demands of the consumer, it is best to

a)

create a strong slogan

b)

conduct surveys and market research

c)

find out what your partner says

d)

observe the competition

25.

A company ....

a)

is not a common type of business

b)

comes from the 'Old French', meaning companionship

c)

is more complex than a small business

d)

is treated as if it were a person

26.

What are the factors affecting productivity for labour?

a)

Irrigation

b)

Migration

c)

Reclamation

d)

Drainage

27.

What are not the advantages of division of labour for the worker?

a)

Repetition

b)

Learning new skills

c)

Highly skilled on a task

d)

Enjoy more job satisfaction

28.

How many sellers are in a monopoly

a)

ZERO

b)

ONE

c)

MORE THAT ONE

d)

NOT COUNTABLE

29.

WHAT IS MONOPOLY

a)

A price maker

b)

Price taker

c)

both

d)

price predator

30.

1. What is bulk buying

What is bulk buying ?

a)

Buying goods in large quantities, which is usually cheaper than buying in small quantities

b)

Buying goods in small quantities, which is usually more expensive than buying in big quantities

c)

Getting large loans are lower prices

d)

Buying a large quantity of goods and reselling at a higher price

31.

What are internal economies of scale

?

a)

Rising average costs when a firm becomes too big

b)

Falling average costs due to expansion

c)

Cost benefits that an individual firm can enjoy when it expands

d)

More investment into large factory machinery

32.

WHAT ARE THE 4 FACTORS OF PRODUCTION?

a)

Land, Capital, Need & Want

b)

Land, Capital, Good & Service

c)

Water, Air, Food & Shelter

d)

Land, Labour, Capital, Entrepreneurs

33.

Which is not an advantage of a small firm?

a)

Better communication

b)

flexibility

c)

economies of scale

d)

a personal service can be offered

34.

A GARBAGE TRUCK DRIVER IS AN EXAMPLE OF WHICH FACTOR OF PRODUCTION?

a)

Labour

b)

Land

c)

Entrepreneurship

d)

capital

35.

How is the size of firm measured?

a)

economies of scale

b)

turnover

c)

innovation

d)

quality of staff

36.

Which of these are only variable costs?

a)

- Rent, raw materials

b)

Inputs, wages per hour

c)

- Insurance, electricity

d)

- Raw materials, loan payment

37.

How do we find the average cost?

a)

Total cost x quantity produced

b)

quantity produced/ total cost

c)

Total cost/ quantity produced

d)

Quantity produced – total cost

38.

When output Is 0, total cost = 100, when output = 5 and total cost = 500, fixed cost equals?

a)

50

b)

500

c)

400

d)

100

39.

What is an oligopoly?

a)

a market with a few large firms dominating the market

b)

A market with only two firms.

c)

a market is shared by a small number of producers or sellers.

d)

A market with many firms.

40.

Firms that dominate the market benefit from barriers to entry?

a)

True

b)

False

c)

Never

d)

Sometimes

41.

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

42.

Determinants of Elasticity of Demand

a)

Nature of Commodity

b)

Substitute Goods

c)

Price of Commodity

d)

Use of Commodity

43.

Market situation where there is single seller. There is no close substitute and no free entry and exist. is refer as

a)

Perfect Competition

b)

Monopoly

c)

Oligopoly

d)

Monopolistic Competition

44.

Market situation where there is single seller. There is no close substitute and no free entry and exist. is refer as

a)

Perfect Competition

b)

Monopoly

c)

Oligopoly

d)

Monopolistic Competition

45.

The condition of consumer equilibrium under cardinal approach in case of one commodity is

a)

price of commodity should be rising

b)

price of commodity should equal to be marginal utility

c)

price of commodity should be decreasing

d)

none of these

46.

Indifference curves never intersect each other due to:

a)

(a) Different levels of satisfaction

b)

(b) Same levels of satisfaction

c)

(c) Convex to origin

d)

(d) Concave to origin

47.

A budget constraints line is a result of:

a)

(a) Market price of commodity X

b)

(b) Market price of commodity Y

c)

(c) Income of the consumer

d)

(d) All of these

48.

Stock of money held by the public at a point of time is called

a)

Money Supply

b)

Demand for Money

c)

Money Flow

d)

Velocity of Money

49.

Money supply includes

a)

currency with the public

b)

demand deposits with the banks

c)

time deposits with the banks

d)

both a and b

50.

The number of times money changes hands is called

a)

Money Supply

b)

Demand for Money

c)

Money Stock

d)

Velocity of Circulation of Money

51.

increase in prices due to increase in population is called

a)

demand-pull inflation

b)

cost-push inflation

c)

cost-pull inflation

d)

demand-push inflation

52.

Cost-push inflation is caused due to

a)

rise in profits

b)

rise in wages

c)

shortage of raw materials

d)

all of the above

53.

______________ gain in inflation.

a)

Pensioners

b)

Investors in Shares

c)

Salaried people

d)

Creditors

54.

Bank rate, CRR, SLR are

a)

Fiscal Measures

b)

Other Measures

c)

Demand Measures

d)

Monetary Measures

55.

When money supply is viewed over a period of time, it is called

a)

stock of money

b)

flow of money

c)

liquid money

d)

solid money

56.

Precautionary demand for money is ____________ function of income.

a)

Increasing

b)

Decreasing

c)

Constant

d)

Stagnant

57.

which of the following is true?

a)

Inflation is short-term.

b)

Inflation is dynamic.

c)

inflation refers to falling prices.

d)

Inflation means goods are cheap.

58.

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

59.

Which theory is generally included under micro economics?

a)

price theory

b)

income theory

c)

employment theory

d)

trade theory

60.

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

a)

goods

b)

service

c)

markets

d)

revenues

61.

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

62.

Planning guidelines

a)

capital expenditure proposals

b)

change needed in the level of working capital

c)

limits on discretionary expenditure

d)

all the above

63.

1. Forward planning goes hand in hand with

a)

a. decision making

b)

b. capital

c)

c. stock

d)

d. sales

64.

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

a)

a. Necessity

b)

b. Luxury

c)

c. Substitute

d)

d. Complement

65.

5.The income elasticity of demand is negative for a

a)

a. complement good

b)

b. normal good

c)

c. superior good

d)

d. inferior good

66.

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

a)

a. Income effect

b)

b. Substitution effect

c)

c. Price effect

d)

d. complementary effect

67.

7.Two goods that are used jointly to provide satisfaction are called

a)

a. Inferior goods

b)

b. Normal goods

c)

c. Complementary goods

d)

d. Substitute goods

68.

8. Demand curve slopes downwards because of

a)

a. The law of diminishing marginal utility

b)

b. The income effect

c)

c. Substitution effect

d)

d. All of the above

69.

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)

a. Giffen goods

b)

b. Inferior goods

c)

c. Normal goods

d)

d. Superior one of these

70.

13. Which of the following is not a variable input.

a)

a. Raw material

b)

b. Power

c)

c. Equipment

d)

d. labour

71.

14. Which cost is more useful for decision making

a)

a. Opportunity cost

b)

b.Sunk cost

c)

c.Historical cost

d)

d. Variable cost

72.

15. Which cost are recorded in books of accounts

a)

a.Opportunity cost

b)

b.Implicit cost

c)

c. Social cost

d)

d.Explicit cost

73.

18.Fixed cost per unit increases when

a)

a. Volume of production decreases

b)

b. Volume of production increases

c)

c. Variable cost per unit decreases

d)

d. variable cost remains constant

74.

19. Variable cost per unit

a)

a. Remains fixed

b)

b. Varies with the volume of production

c)

c. Varies with sales

d)

d. varies with consumption

75.

20.……… refers to the quantity of a good or service that producers are willing and able to sell during a certain period under a given set of conditions

a)

a. Supply

b)

b. Demand

c)

c. Price

d)

d. Production change

76.

22. Opportunity cost means

a)

a. The accounting cost minus the marginal benefit.

b)

b. The highest-valued alternative forgone.

c)

c. The monetary costs of an activity.

d)

d. The accounting cost minus the marginal cost

77.

25. Law of demand shows the functional relationship between _______ and quantity demanded

a)

a. Supply

b)

b. Cost

c)

c. Price

d)

d. Requirements

78.

26. Basic assumptions of law of demand include

a)

a. Prices of other goods should change.

b)

b. There should be substitute for the commodity.

c)

c. The commodity should not confer any distinction

d)

d. The demand for the commodity should not be continuous

79.

48. If the elasticity of supply is greater than one, the supply curve would be _______.

a)

a. touching y-axis

b)

b. passing through the origin

c)

c. vertical

d)

d. horizontal

80.

44. The process of choosing one action from two or more alternatives available is known as

a)

a.decision making

b)

b.irrational thinking

c)

c.mis perceptions

d)

d. desire making

81.

Which type of goods typically has a perfectly inelastic demand?

a)

Substitutes

b)

Necessary goods

c)

Durable goods

d)

Luxury goods

82.

What does elasticity of demand measure?

a)

Change in supply with respect to price

b)

Responsiveness of demand to price changes

c)

Marginal cost of production

d)

Total utility derived from consumption

83.

Economics has been called a 'Science of Choice ' because

a)

The human wants are unlimited, so choice making is essential

b)

Economics is a Social science

c)

Economics is a Study of material welfare

d)

Economics is a Study of man and choice

84.

In economics 'Ends' refers to

a)

Human wants

b)

Scarcity

c)

Surplus

d)

Alternative uses

85.

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

86.

Supply represents...

a)

how much of a product or service the market has to offer

b)

how much of a product that the customer wants to buy

c)

how many goods are available for purchase

d)

how much of a product or service that buyers want to sell

87.

Exports are...

a)

goods and services that are purchased from overseas businesses

b)

goods and services that are exported to overseas governments

c)

goods and services that are sold domestically to the household sector

d)

goods and services sold by local businesses to overseas consumers

88.

Capital is...

a)

the money or cash on hand that a business has at their disposal

b)

all the equipment used by human labour in the process of production

c)

all the equipment used when to create goods and services for the consumers

d)

the resources required to produce goods and services for consumers

89.

Goods are...

a)

goods are sold at supermarkets for consumption

b)

goods are intangible items that cannot be seen or touched

c)

goods are actions done by businesses for consumers

d)

goods are physical, tangible products that can be seen and touched

90.

The economic problems of relative scarcity refers to...

a)

consumers purchasing goods and services from businesses

b)

consumers not being able to afford different goods and services

c)

consumers making purchasing decisions in relation to their needs and wants

d)

consumers making purchasing decisions in relations to goods and services

91.

Household demand is...

a)

the amount of goods or services that consumers are willing and able to purchase at a point in time

b)

the amount of products created throughout the production process that are available to the household sector

c)

the amount of goods and services that businesses produce for the household sector at a point in time

d)

the amount of goods required in the production process

92.

The four sectors in the economy are...

a)

The household sector, financial sector, business sector & government sector

b)

The household sector,tax sector,business sector, & government sector

c)

The business sector, tax sector, household sector & financial sector

d)

The financial sector, government sector, corporate sector, & household sector

93.

Demand Function explain relationship between demand for Commodity and its___________.

a)

Determinants

b)

Elasticity

c)

Only Price

d)

Elements

94.

"------------------ of demand is the proportional change of amount purchased in response to small change in price."

(a)

95.

Market situation where there is single seller. There is no close substitute and no free entry and exist. is refer as

a)

Perfect Competition

b)

Monopoly

c)

Oligopoly

d)

Monopolistic Competition

96.

When the quantity demanded remains the same whatever be the change then Price elasticity is

a)

Perfectly Elastic

b)

Perfectly Inelastic

c)

Relatively Elastic

d)

Relatively Inelastic

97.

An increase in the general level of prices paid for goods and services over a certain period of time is known as...?

a)

Inflation

b)

GDP

c)

Unemployment

d)

Economic growth

98.

What is Scarcity?

a)

Needs and Wants

b)

Unlimited Needs and Wants

c)

When something is in short supply

d)

When something is rare and expensive

99.

Which of the following products is likely to show price elasticity?

a)

Fresh fruit

b)

Milk

c)

Bread

d)

Eggs

100.

Which of the following is an internal factor that could influence a consumer's buying decision?

a)

Internet marketing

b)

Price

c)

Finance (availability and cost)

d)

Social and cultural

101.

Involves the exchange of goods and services between nations.

a)

International trade

b)

free trade

c)

trade barriers

d)

International diplomacy

102.

This is a tax on imports that is used to increase price of foreign products and raise government revenue.

a)

tariff

b)

quota

c)

subsidy

d)

embargo

BusinessEconomics-29April2025

Total questions: 102

Worksheet time: 1hrs 1mins

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