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Business Economics Quiz

Total questions: 62

Worksheet time: 1hrs 21mins

Name
Class
Date
1.

The father of economics who defined Economics as a science of wealth is ____________

a)

Alfred Marshall

b)

Adam Smith

c)

Lionel Robbins

d)

Keynes

2.

Business economics is based on values, opinions, and judgements. This indicates it is a _ ____

a)

Positive science

b)

Pragmatic

c)

Normative science

d)

Prescriptive.

3.

The basic problems of an economy are _________________

a)

What to produce

b)

How much to produce

c)

How and where to produce

d)

All the above.

4.

____________ and ______________ are two main branches of Business Economics?

a)

Micro and Macro

b)

Applied and Managerial

c)

Both

d)

None of the above

5.

Demand is the desire for the commodity backed by the ability & _________to pay for it.

a)

Money

b)

Purchasing power

c)

Motivation

d)

Willingness

6.

Law of Demand expresses the functional relationship between two variables as _________

a)

As the price falls demand rises

b)

As prices falls demand falls

c)

As the price rises demand rises

d)

As price falls demand is same

7.

The scope of Micro economics is ______________ than Macroeconomics

a)

Wider

b)

Narrower

c)

Same

d)

None the above

8.

Price theory deals with _________________ economics

a)

Micro

b)

Macro

c)

Both a) and (b).

d)

None of the above

9.

Income theory deals with _________________ economics

a)

Micro

b)

Macro

c)

Both (a) and (b).

d)

None of the above

10.

Welfare (neo classical) definition of economics is given by

a)

J B Say

b)

Lionel Robbins

c)

Adam Smith

d)

Alfred Marshall

11.

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)

None of these

12.

"A rupee tomorrow is worth less than a rupee today" relates to

a)

Opportunity cost principle

b)

Discounting principle

c)

Equi‐marginal principle

d)

None of these

13.

Basic economic tools of managerial economics does not include

a)

Principle of time perspective

b)

Equi‐marginal principle

c)

Incremental principle

d)

None of these

14.

…….. principle is closely related to the marginal costs and marginal revenue of economic theory

a)

Principle of time perspective

b)

Equi‐marginal principle

c)

Incremental principle

d)

None of these

15.

Analysis of long run and short run affects of decisions on revenue as well as costs is based on

a)

Principle of time perspective

b)

Equi‐marginal principle

c)

incremental principle

d)

None of these

16.

Managerial economics is the application of economic theory to:

a)

The problem of the firm

b)

The problem of the individuals

c)

The problem of economy

d)

NONE

17.

The relationship between price and demand is ____________.

a)

Direct

b)

Positive

c)

Negative

d)

None of these

18.

Law of demand shows ___________ relationship between price and quantity demanded.

a)

Positive

b)

Negative

c)

Direct

d)

None of the above

19.

The business decisions are taken keeping in view:

a)

Economic Models

b)

Economic Theories

c)

Economic Models and Theories

d)

None

20.

The approach followed in business economics is:

a)

Normative Approach

b)

Pragmatic Approach

c)

Conservative Approach

d)

None

21.

The primary objective of the business economics is:

a)

Social Welfare

b)

Profit Maximization

c)

Progress of nation

d)

All the above

22.

Time value of money results from:

a)

Concept of interest

b)

Concept of wages

c)

Concept of money

d)

none

23.

In micro economics the concepts are studied related to:

a)

Individual units

b)

Aggregate Units

c)

Both individual and aggregate units

d)

none

24.

The cost of next best alternative foregone is:

a)

Opportunity Cost

b)

Marginal Cost

c)

Total Cost

d)

None the above

25.

Two goods that are used jointly to provide satisfaction are called

a)

Inferior goods

b)

Normal goods

c)

Complementary goods

d)

Substitute goods

26.

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

27.

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

28.

Production refers to ___.

a)

Destruction of utility

b)

Creation of utility

c)

Exchange value

d)

None of the above

29.

An exceptional demand curve is one that moves

a)

Upward to the right

b)

Downward to the right

c)

Horizontally

d)

Upward to the left.

30.

Macroeconomics is the theory of ________.

a)

Income and employment

b)

Price Theory

c)

Demand Theory

d)

Cost Theory

31.

Business Economics is also known as __________________________.

4 lines
32.

The branch of economics that focuses on individual markets, firms, and consumer behaviour is known as (a)   economics.

33.

_________________is the value of the next best alternative that was not chosen or foregone or sacrificed.

4 lines
34.

______________________ is the cost incurred due to an additional unit of product being produced and is also known as marginal cost interchangeably.

4 lines
35.

The concept that the manager should give due emphasis both to short term and long-term effect of his decision is known as ________________

4 lines
36.

Demand curve generally slopes (a)  

37.

Managerial economics is concerned only with the (a)   aspects of business decision-making.

38.

In managerial economics, (a)   forecasting is important for making production decisions.

39.

The determinants of demand are _______________ (write any one)-

4 lines
40.

Land, labour, capital and machines are called as _________

4 lines
41.

Average revenue is also called as _____ of commodity.

4 lines
42.

Supply of a commodity is a part of its (a)  

43.

The law of supply does not apply to ______ commodities.

4 lines
44.

Welfare (neo classical) definition of economics is given by (a)   .

45.

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

4 lines
46.

"A rupee tomorrow is worth less than a rupee today" relates to ____________.

4 lines
47.

Analysis of long run and short run effects of decisions on revenue as well as costs is based on _________

4 lines
48.

Two goods that are used jointly to provide satisfaction are called _________

4 lines
49.

Demand curve (a)   sloping.

50.

(a)   elasticity of demand is called as elasticity of demand.

51.

The marginal utility derived from the good (a)   the marginal utility derived from the consumption of all other goods.

52.

As more and more consumers possess a particular product, others are also psychologically influenced to buy that product, which is called __________

4 lines
53.

Managerial Economics relates to the use of tools and techniques of _______ to solve managerial problems.

4 lines
54.

___________ is the application of Economic theory to managerial practice.

4 lines
55.

-------- has indicated that economic problem mainly arises because, human wants are unlimited whereas the means to satisfy these wants are limited.

(a)  

56.

Other things remaining the same, (a)   demanded of a commodity is inversely related to its price.

57.

(a)   demand is nothing but desire backed by individual's ability and willingness to pay

58.

Define Economics

4 lines
59.

What is utility?

4 lines
60.

Opportunity Cost.

4 lines
61.

Historical Cost

4 lines
62.

Incremental Cost

4 lines

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