Quiz on Nature and Scope of Business Economics

#1. Which of the following is considered as a disadvantage of allocating resources using the market system?

Income will tend to be unevenly distributed.

People do not get goods of their choice.

Profits will tend to be low.

Men of Initiative and enterprise are not rewarded.

#2. Capital intensive technique would get chosen in a

developed economy where technology is better.

developing economy where technology is poor.

labour surplus economy where the relative price of capital is lower.

capital surplus economy where the relative price of capital is lower.

#3. In Economics, we use the term scarcity to mean;

Scarcity caused on account of excessive consumption by the rich.

Relative scarcity i.e. scarcity in relation to the wants of the society.

Absolute scarcity and lack of resources in less developed countries.

Scarcity during times of business failure and natural calamities.

#4. The branch of economic theory that deals with the problem of allocation of resources is

Macro-economic theory.

none of the Option

Micro-Economic theory.

Econometrics.

#5. Which of the following statements does not apply to a market economy?

Firms aim at maximizing profits.

Households decide which firms to work for and what to buy with their incomes.

Government policies are the primary forces that guide the decisions of firms and households.

Firms decide whom to hire and what to produce.

#6. Macro Economics is the study of ………….

all aspects of scarcity.

the national economy and the global economy asa whole.

the decisions of individual businesses and people.

big businesses.

#7. Which of the following is a normative economic statement?

The minimum wage should be raised to Rs 200/- per day

Unemployment rate decreases with industrialization

Economics is a social science that studies human behaviour.

India spends a huge amount of money on national defence.

#8. Profit motive is a merit of

Capitalism

None of the Option

Socialism

Mixed economy

#9. Which of the following is a normative statement?

Reducing inequality should be a major priority for mixed economies.

Planned economies allocate resources via government departments.

There is a greater degree of consumer sovereignty in market economies than planned economies.

Most transitional economies have experienced problems of falling output and rising prices over the past decade.

#10. A capitalist economy uses …………… as the principal means of allocating resources.

efficiency

supply

demand

prices

#11. There is need of economic study, because-

The resources are limited

The resources are unlimited

The wants are unlimited

The resources are limited and The wants are unlimited

#12. Economic goods are considered scarce resources because they

are of primary importance in satisfying social requirements.

cannot be increased in quantity.

are limited to man made goods.

do not exist in adequate quantity to satisfy the requirements of the society.

#13. A very large loan extended by a group of small banks to a single corporate borrower is called as which of the folowing?

Syndicated loan

Long term loan

Time Deposit

Annuities

#14. The definition “Science which deals with wealth of Nation'” was given by:

AC Pigou

Alfred Marshall

Adam Smith

JB Say

#15. Which of the following would be considered a topic of study in Macroeconomics?

The effect on steel prices when more steel is imported

The effect of an increase in the price of coffee on the quantity of tea consumed

The effect of an increasing inflation rate on living standards of people in India

The effect of increase in wages on the profitability of cotton industry

#16. Ram: My corn harvest this year is poor. Krishan: Don’t worry. Price increases will compensate for the fallin quantity supplied. Vinod: Climate affects crop yields. Some years are bad, others are good. Madhu: The Government ought to guarantee that our income will not fall. In this conversation, the normative statement is made by

Krishan

Vinod

Ram

Madhu

#17. The managerial economics

Is just a theory concept

Trains managers how to behave in recession

ls Applied Economics that fills the gap between economic theory and business practice

Provides the tools which explain various concepts

#18. Which of the following does not suggest a macro approach for India?

Analyse the causes of failure of industry in providing large scale employment

Determining the GNP of India.

Finding the causes of failure of ABC Ltd.

Identifying the causes of inflation in India.

#19. The benefit of economic study is-

It ensure that all problems will be appropriately tackled

It helps in identifying problems

It gives exact solutions to every problem

It enable to examine a problem in its right perspective

#20. What implication(s) does resource scarcity have for the satisfaction of wants?

We must develop ways to decrease our individual wants.

Not all wants can be satisfied.

We will never be faced with the need to make choices

The discovery of new natural resources is necessary to increase our ability to satisfy wants.

#21. Larger production of ……….. goods would lead to higher production in future.

capital goods

agricultural goods

consumer goods

public goods

#22. Which of the following is not the subject matter of Business Economics?

How much should be produced and at price should be kept?

How should we decrease unemployment in the economy?

Should our firm be in this business?

How will the product be placed in the market?

#23. Exploitation and inequality are minimal under:

Socialism

Capitalism

None of the Option

Mixed economy

#24. Freedom of choice is the advantage of

Communism

Socialism

Capitalism

None of the Option

#25. Which of the following statements is incorrect?

Business Economics has a close connection with statistics

Business Economist need not worry about macro variables.

Business economics is normative in nature.

Business Economics is also called Managerial Econonmics.

#26. Business Economics is

Involves practical application of economic theory in business decision making and Incorporates tools from multiple disciplines.

Involves practical application of economic theory in business decision making

Abstract and applies the tools of Macroeconomics

Incorporates tools from multiple disciplines.

#27. In a mixed economy

economic decisions are partly taken by the state and partly by the private entrepreneurs.

none of the Option

all economic decisions are taken by private entrepreneurs.

all economic decisions are taken by the central authority.

#28. The difference between positive and normative Economics is:

Positive Economics prescribes while normative Economics describes.

Positive Economics describes the facts of the economy while normative Economics involves evaluating whether some of these are good or bad for the welfare of the people.

Normative Economics describes the facts of the economy while positive Economics involves evaluating whether some of these are good or bad for the welfare of the people.

Positive Economics explains the performance of the economy while normative Economics finds out the reasons for poor performance.

#29. Macroeconomics is also called ……….. economics.

none of the Option

applied

experimental

aggregate

#30. Which of the following is not a subject matter of Micro-economies?

The price of mangoes.

The cost of producing afire truck for the fire department of Delhi, India.

The quantity of mangoes produced for the mangoes market.

The national economy’s annual rate of growth.

#31. Mr. Satish hired a business consultant to guide him for growth of his business. The consultant visited his factory and suggested some changes with respect to staff appointment, loan availability and so on. Which approach is that consultant using’?

Micro economics

Macro economics

None of the Option

Micro economics and Macro economics

#32. Which of the following is not one of the features of capitalist economy?

Right of private property

No profit, No Loss motive

Competition

Freedom of choice by the consumers

#33. The economic system in which all the means production are owned and controlled by private individuals for profit.

Mixed economy

Capitalism

Socialism

Communism

#34. The central problem in economics is that of

guaranteering that production occurs in the most efficient manner

allocating scarce resources in such a manner that society’s unlimited needs or wants aresatisfied in the best possible manner.

comparing the success of command versus market economies.

guaranteering a minimum level of income for every citizen

#35. Consider the following and decide which, if any, economy is without scarcity:

None of the Option

A mythical economy where everybody is a billionaire.

The pre-independent Indian economy, where most people were farmers.

Any economy where income is distributed equally among its people.

#36. Which of the following statements is correct?

Micro economics is important for study of a particular household and a particular firm

Macro economics is important for study of economic conditions of a country

None of the Option

Micro economics is important for study of a particular household and a particular firm and Macro economics is important for study of economic conditions of a country

#37. An example of ‘positive’ economic analysis would be:

determining how much income each person should be guaranteed.

an analysis of the relationship between the price of food and the quantity purchased.

determining the fair price for food.

deciding how to distribute the output of the economy.

#38. Scarcity definition of Economics is given by-

Alfred Marshall

Adam Smith

Robinson

Samuelson

#39. …………. is also called as command economy

Socialist

Mixed economy

Capitalist

None of the Option

#40. In a free market economy the allocation of resources is determined by

voting done by consumers

the level of profits of firms.

consumer preferences.

a central planning authority.

#41. Administered prices refer to:

Prices determined by sellers in the market

Prices determined by an external authority which is usually the government

Prices determined by forces of demand and supply

None of the Option

#42. In every economic system, scarcity imposes limitations on

households and governments, but not business fims.

households, business firms, governments, and the nation as a whole.

local and state governments, but not the federal govenment.

households and business firms, but not the govenments.

#43. In Economics, the central economic problem means:

Output is restricted to the limited availability of resources

There will always be certain level of unemployment

Consumer do not have as much money as they would wish

Resources are not always allocated in an optimum way

#44. Which of the following is not within the scope of Business Economics?

Accounting Standards

Business Cycles

Capital Budgeting

Risk Analysis

#45. Which of the following is not one of the four central questions that the study of economics is supposed to answer?

When are goods produced?

How are goods produced?

Who produces what?

Who consumes what?

#46. A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of

Normative economics.

Macro-Economics.

Micro-economics.

Descriptive Economics.

Finish

Results

Quiz on Nature and Scope of Business Economics

#1. Which of the following is considered as a disadvantage of allocating resources using the market system?

#2. Capital intensive technique would get chosen in a

#3. In Economics, we use the term scarcity to mean;

#4. The branch of economic theory that deals with the problem of allocation of resources is

#5. Which of the following statements does not apply to a market economy?

#6. Macro Economics is the study of ………….

#7. Which of the following is a normative economic statement?

#8. Profit motive is a merit of

#9. Which of the following is a normative statement?

#10. A capitalist economy uses …………… as the principal means of allocating resources.

#11. There is need of economic study, because-

#12. Economic goods are considered scarce resources because they

#13. A very large loan extended by a group of small banks to a single corporate borrower is called as which of the folowing?

#14. The definition “Science which deals with wealth of Nation'” was given by:

#15. Which of the following would be considered a topic of study in Macroeconomics?

#17. The managerial economics

#18. Which of the following does not suggest a macro approach for India?

#19. The benefit of economic study is-

#20. What implication(s) does resource scarcity have for the satisfaction of wants?

#21. Larger production of ……….. goods would lead to higher production in future.

#22. Which of the following is not the subject matter of Business Economics?

#23. Exploitation and inequality are minimal under:

#24. Freedom of choice is the advantage of

#25. Which of the following statements is incorrect?

#26. Business Economics is

#27. In a mixed economy

#28. The difference between positive and normative Economics is:

#29. Macroeconomics is also called ……….. economics.

#30. Which of the following is not a subject matter of Micro-economies?

#31. Mr. Satish hired a business consultant to guide him for growth of his business. The consultant visited his factory and suggested some changes with respect to staff appointment, loan availability and so on. Which approach is that consultant using’?

#32. Which of the following is not one of the features of capitalist economy?

#33. The economic system in which all the means production are owned and controlled by private individuals for profit.

#34. The central problem in economics is that of

#35. Consider the following and decide which, if any, economy is without scarcity:

#36. Which of the following statements is correct?

#37. An example of ‘positive’ economic analysis would be:

#38. Scarcity definition of Economics is given by-

#39. …………. is also called as command economy

#40. In a free market economy the allocation of resources is determined by

#41. Administered prices refer to:

#42. In every economic system, scarcity imposes limitations on

#43. In Economics, the central economic problem means:

#44. Which of the following is not within the scope of Business Economics?

#45. Which of the following is not one of the four central questions that the study of economics is supposed to answer?

#46. A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of

Results

Learn smart. Grow smart.