Quiz on Nature and Scope of Business Economics

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

Unemployment rate decreases with industrialization

Economics is a social science that studies human behaviour.

India spends a huge amount of money on national defence.

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

#2. Freedom of choice is the advantage of

None of the Option

Socialism

Communism

Capitalism

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

Identifying the causes of inflation in 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.

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

Income will tend to be unevenly distributed.

Profits will tend to be low.

People do not get goods of their choice.

Men of Initiative and enterprise are not rewarded.

#5. Capital intensive technique would get chosen in a

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

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

developing economy where technology is poor.

developed economy where technology is better.

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

Consumer do not have as much money as they would wish

There will always be certain level of unemployment

Resources are not always allocated in an optimum way

Output is restricted to the limited availability of resources

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

Capitalist

Socialist

None of the Option

Mixed economy

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

deciding how to distribute the output of the economy.

determining how much income each person should be guaranteed.

determining the fair price for food.

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

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

prices

demand

supply

efficiency

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

How will the product be placed in the market?

Should our firm be in this business?

How should we decrease unemployment in the economy?

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

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

experimental

applied

none of the Option

aggregate

#12. The managerial economics

Provides the tools which explain various concepts

Trains managers how to behave in recession

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

Is just a theory concept

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

AC Pigou

JB Say

Adam Smith

Alfred Marshall

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

big businesses.

the national economy and the global economy asa whole.

the decisions of individual businesses and people.

all aspects of scarcity.

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

Time Deposit

Annuities

Long term loan

Syndicated loan

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

Econometrics.

Micro-Economic theory.

none of the Option

Macro-economic theory.

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

local and state governments, but not the federal govenment.

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

households and business firms, but not the govenments.

households and governments, but not business fims.

#18. Exploitation and inequality are minimal under:

Mixed economy

Socialism

Capitalism

None of the Option

#19. Which of the following statements is incorrect?

Business Economics is also called Managerial Econonmics.

Business Economics has a close connection with statistics

Business Economist need not worry about macro variables.

Business economics is normative in nature.

#20. Economic goods are considered scarce resources because they

are of primary importance in satisfying social requirements.

are limited to man made goods.

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

cannot be increased in quantity.

#21. In a mixed economy

all economic decisions are taken by the central authority.

none of the Option

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

all economic decisions are taken by private entrepreneurs.

#22. The central problem in economics is that of

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

guaranteering a minimum level of income for every citizen

guaranteering that production occurs in the most efficient manner

comparing the success of command versus market economies.

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

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

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

Planned economies allocate resources via government departments.

Reducing inequality should be a major priority for mixed economies.

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

Right of private property

Freedom of choice by the consumers

Competition

No profit, No Loss motive

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

public goods

consumer goods

agricultural goods

capital goods

#26. Profit motive is a merit of

Capitalism

Mixed economy

Socialism

None of the Option

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

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

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

#28. 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

Ram

Madhu

Krishan

Vinod

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

Scarcity during times of business failure and natural calamities.

Absolute scarcity and lack of resources in less developed countries.

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

Scarcity caused on account of excessive consumption by the rich.

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

Positive Economics prescribes while normative Economics describes.

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.

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.

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

We must develop ways to decrease our individual wants.

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

Not all wants can be satisfied.

We will never be faced with the need to make choices

#32. 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

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

Mixed economy

Communism

Capitalism

Socialism

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

The national economy’s annual rate of growth.

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

The price of mangoes.

The quantity of mangoes produced for the mangoes market.

#35. Administered prices refer to:

Prices determined by an external authority which is usually the government

Prices determined by sellers in the market

Prices determined by forces of demand and supply

None of the Option

#36. 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’?

Macro economics

None of the Option

Micro economics and Macro economics

Micro economics

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

The resources are unlimited

The resources are limited and The wants are unlimited

The wants are unlimited

The resources are limited

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

Descriptive Economics.

Normative economics.

Micro-economics.

Macro-Economics.

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

a central planning authority.

voting done by consumers

consumer preferences.

the level of profits of firms.

#40. Scarcity definition of Economics is given by-

Robinson

Adam Smith

Samuelson

Alfred Marshall

#41. Which of the following statements is correct?

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

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

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

None of the Option

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

Risk Analysis

Business Cycles

Accounting Standards

Capital Budgeting

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

Any economy where income is distributed equally among its people.

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

None of the Option

A mythical economy where everybody is a billionaire.

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

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

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

Firms decide whom to hire and what to produce.

Firms aim at maximizing profits.

#45. Business Economics is

Incorporates tools from multiple disciplines.

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

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

Who consumes what?

Who produces what?

When are goods produced?

How are goods produced?

Finish

Results

Quiz on Nature and Scope of Business Economics

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

#2. Freedom of choice is the advantage of

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

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

#5. Capital intensive technique would get chosen in a

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

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

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

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

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

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

#12. The managerial economics

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

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

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

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

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

#18. Exploitation and inequality are minimal under:

#19. Which of the following statements is incorrect?

#20. Economic goods are considered scarce resources because they

#21. In a mixed economy

#22. The central problem in economics is that of

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

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

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

#26. Profit motive is a merit of

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

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

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

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

#32. The benefit of economic study is-

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

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

#35. Administered prices refer to:

#36. 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’?

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

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

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

#40. Scarcity definition of Economics is given by-

#41. Which of the following statements is correct?

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

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

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

#45. Business Economics is

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

Results

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