Quiz on Nature and Scope of Business Economics

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

the decisions of individual businesses and people.

the national economy and the global economy asa whole.

big businesses.

all aspects of scarcity.

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

Micro-economics.

Descriptive Economics.

Normative economics.

Macro-Economics.

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

Risk Analysis

Accounting Standards

Business Cycles

Capital Budgeting

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

AC Pigou

JB Say

Alfred Marshall

Adam Smith

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

Freedom of choice by the consumers

No profit, No Loss motive

Right of private property

Competition

#6. Freedom of choice is the advantage of

Capitalism

None of the Option

Socialism

Communism

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

Econometrics.

Micro-Economic theory.

Macro-economic theory.

none of the Option

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

applied

aggregate

experimental

none of the Option

#9. 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 that production occurs in the most efficient manner

guaranteering a minimum level of income for every citizen

comparing the success of command versus market economies.

#10. 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.

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

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

households and business firms, but not the govenments.

local and state governments, but not the federal govenment.

households and governments, but not business fims.

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

How should we decrease unemployment in the economy?

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

Should our firm be in this business?

How will the product be placed in the market?

#13. Economic goods are considered scarce resources because they

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

are of primary importance in satisfying social requirements.

are limited to man made goods.

cannot be increased in quantity.

#14. Which of the following statements is incorrect?

Business Economics has a close connection with statistics

Business economics is normative in nature.

Business Economics is also called Managerial Econonmics.

Business Economist need not worry about macro variables.

#15. 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

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

Finding the causes of failure of ABC Ltd.

Identifying the causes of inflation in India.

Determining the GNP of India.

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

#17. 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.

deciding how to distribute the output of the economy.

determining the fair price for food.

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

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.

Positive Economics prescribes while normative Economics describes.

#19. Administered prices refer to:

None of the Option

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

#20. Scarcity definition of Economics is given by-

Alfred Marshall

Samuelson

Adam Smith

Robinson

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

A mythical economy where everybody is a billionaire.

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

None of the Option

Any economy where income is distributed equally among its people.

#22. 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

Madhu

Vinod

Krishan

Ram

#23. 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?

Who produces what?

Who consumes what?

How are goods produced?

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

Capitalist

Mixed economy

Socialist

None of the Option

#25. 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’?

None of the Option

Macro economics

Micro economics and Macro economics

Micro economics

#26. Business Economics is

Abstract and applies the tools of Macroeconomics

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

Incorporates tools from multiple disciplines.

#27. The benefit of economic study is-

It ensure that all problems will be appropriately tackled

It gives exact solutions to every problem

It helps in identifying problems

It enable to examine a problem in its right perspective

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

voting done by consumers

consumer preferences.

the level of profits of firms.

a central planning authority.

#29. Which of the following statements is correct?

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

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

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

None of the Option

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

The resources are limited and The wants are unlimited

The resources are limited

The resources are unlimited

The wants are unlimited

#31. In a mixed economy

none of the Option

all economic decisions are taken by private entrepreneurs.

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

all economic decisions are taken by the central authority.

#32. 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.

Firms decide whom to hire and what to produce.

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

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

Scarcity during times of business failure and natural calamities.

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

Scarcity caused on account of excessive consumption by the rich.

Absolute scarcity and lack of resources in less developed countries.

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

Planned economies allocate resources via government departments.

Reducing inequality should be a major priority for mixed economies.

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.

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

Mixed economy

Socialism

Communism

Capitalism

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

Not all wants can be satisfied.

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

We will never be faced with the need to make choices

We must develop ways to decrease our individual wants.

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

India spends a huge amount of money on national defence.

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

Economics is a social science that studies human behaviour.

Unemployment rate decreases with industrialization

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

Resources are not always allocated in an optimum way

Consumer do not have as much money as they would wish

Output is restricted to the limited availability of resources

There will always be certain level of unemployment

#39. Exploitation and inequality are minimal under:

Capitalism

Mixed economy

Socialism

None of the Option

#40. Profit motive is a merit of

Mixed economy

Socialism

Capitalism

None of the Option

#41. The managerial economics

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

Provides the tools which explain various concepts

Trains managers how to behave in recession

Is just a theory concept

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

agricultural goods

public goods

capital goods

consumer goods

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

Profits will tend to be low.

Income will tend to be unevenly distributed.

Men of Initiative and enterprise are not rewarded.

People do not get goods of their choice.

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

efficiency

supply

demand

prices

#45. 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

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

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

The national economy’s annual rate of growth.

The quantity of mangoes produced for the mangoes market.

The price of mangoes.

finish

Results

Quiz on Nature and Scope of Business Economics

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

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

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

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

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

#6. Freedom of choice is the advantage of

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

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

#9. The central problem in economics is that of

#10. Capital intensive technique would get chosen in a

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

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

#13. Economic goods are considered scarce resources because they

#14. Which of the following statements is incorrect?

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

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

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

#19. Administered prices refer to:

#20. Scarcity definition of Economics is given by-

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

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

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

#25. 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’?

#26. Business Economics is

#27. The benefit of economic study is-

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

#29. Which of the following statements is correct?

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

#31. In a mixed economy

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

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

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

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

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

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

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

#39. Exploitation and inequality are minimal under:

#40. Profit motive is a merit of

#41. The managerial economics

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

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

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

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

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

Results

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