Quiz on Nature and Scope of Business Economics

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

Finding the causes of failure of ABC Ltd.

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

Determining the GNP of India.

Identifying the causes of inflation in India.

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

Socialist

Capitalist

None of the Option

Mixed economy

#3. 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.

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

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

determining how much income each person should be guaranteed.

determining the fair price for food.

deciding how to distribute the output of the economy.

#5. Freedom of choice is the advantage of

None of the Option

Capitalism

Communism

Socialism

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

The national economy’s annual rate of growth.

The quantity of mangoes produced for the mangoes market.

The price of mangoes.

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

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

Communism

Socialism

Mixed economy

Capitalism

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

none of the Option

Macro-economic theory.

Micro-Economic theory.

Econometrics.

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

The wants are unlimited

The resources are limited

The resources are limited and The wants are unlimited

The resources are unlimited

#10. 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?

#11. In a mixed economy

all economic decisions are taken by the central authority.

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.

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

all aspects of scarcity.

big businesses.

the national economy and the global economy asa whole.

the decisions of individual businesses and people.

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

Planned economies allocate resources via government departments.

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.

Reducing inequality should be a major priority for mixed economies.

#14. 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.

#15. 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?

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

Long term loan

Time Deposit

Syndicated loan

Annuities

#17. The central problem in economics is that of

guaranteering a minimum level of income for every citizen

comparing the success of command versus market economies.

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

guaranteering that production occurs in the most efficient manner

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

local and state governments, but not the federal govenment.

households and governments, but not business fims.

households and business firms, but not the govenments.

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

#19. Economic goods are considered scarce resources because they

cannot be increased in quantity.

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

are limited to man made goods.

are of primary importance in satisfying social requirements.

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

none of the Option

applied

experimental

aggregate

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

Capital Budgeting

Risk Analysis

Business Cycles

Accounting Standards

#22. The managerial economics

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

Trains managers how to behave in recession

Is just a theory concept

Provides the tools which explain various concepts

#23. 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

Vinod

Madhu

Krishan

Ram

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

Competition

Right of private property

No profit, No Loss motive

Freedom of choice by the consumers

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

JB Say

AC Pigou

Alfred Marshall

Adam Smith

#26. Exploitation and inequality are minimal under:

Mixed economy

Capitalism

Socialism

None of the Option

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

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

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

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

The effect on steel prices when more steel is imported

#28. Which of the following statements is incorrect?

Business Economist need not worry about macro variables.

Business Economics has a close connection with statistics

Business Economics is also called Managerial Econonmics.

Business economics is normative in nature.

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

the level of profits of firms.

consumer preferences.

voting done by consumers

a central planning authority.

#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 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.

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

#31. Which of the following statements is correct?

None of the Option

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

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

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

We must develop ways to decrease our individual wants.

We will never be faced with the need to make choices

Not all wants can be satisfied.

#33. 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

#34. Capital intensive technique would get chosen in a

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

developed economy where technology is better.

developing economy where technology is poor.

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

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

agricultural goods

capital goods

consumer goods

public goods

#36. Business Economics is

Incorporates tools from multiple disciplines.

Involves practical application of economic theory in business decision making

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

Abstract and applies the tools of Macroeconomics

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

A mythical economy where everybody is a billionaire.

None of the Option

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

Any economy where income is distributed equally among its people.

#38. 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

None of the Option

Micro economics and Macro economics

Macro economics

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

India spends a huge amount of money on national defence.

Unemployment rate decreases with industrialization

Economics is a social science that studies human behaviour.

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

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

Output is restricted to the limited availability of resources

Resources are not always allocated in an optimum way

There will always be certain level of unemployment

Consumer do not have as much money as they would wish

#41. Scarcity definition of Economics is given by-

Samuelson

Robinson

Alfred Marshall

Adam Smith

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

efficiency

prices

supply

demand

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

Micro-economics.

Macro-Economics.

Normative economics.

Descriptive Economics.

#44. Profit motive is a merit of

Socialism

Capitalism

None of the Option

Mixed economy

#45. 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.

Firms aim at maximizing profits.

Firms decide whom to hire and what to produce.

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

#46. The benefit of economic study is-

It gives exact solutions to every problem

It enable to examine a problem in its right perspective

It helps in identifying problems

It ensure that all problems will be appropriately tackled

Finish

Results

Quiz on Nature and Scope of Business Economics

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

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

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

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

#5. Freedom of choice is the advantage of

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

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

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

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

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

#11. In a mixed economy

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

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

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

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

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

#17. The central problem in economics is that of

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

#19. Economic goods are considered scarce resources because they

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

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

#22. The managerial economics

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

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

#26. Exploitation and inequality are minimal under:

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

#28. Which of the following statements is incorrect?

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

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

#31. Which of the following statements is correct?

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

#33. Administered prices refer to:

#34. Capital intensive technique would get chosen in a

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

#36. Business Economics is

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

#38. 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’?

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

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

#41. Scarcity definition of Economics is given by-

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

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

#44. Profit motive is a merit of

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

#46. The benefit of economic study is-

Results

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