Quiz on Nature and Scope of Business Economics

#1. What implication(s) does resource scarcity have for the satisfaction of 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.

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

#2. 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 and Macro economics

Micro economics

None of the Option

Macro economics

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

consumer goods

public goods

capital goods

agricultural goods

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

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

None of the Option

A mythical economy where everybody is a billionaire.

Any economy where income is distributed equally among its people.

#5. 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

None of the Option

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

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

the national economy and the global economy asa whole.

big businesses.

all aspects of scarcity.

the decisions of individual businesses and people.

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

Finding the causes of failure of ABC Ltd.

Determining the GNP of India.

Identifying the causes of inflation in India.

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

#8. Freedom of choice is the advantage of

Communism

Socialism

None of the Option

Capitalism

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

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

Reducing inequality should be a major priority for mixed economies.

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

Planned economies allocate resources via government departments.

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

Normative economics.

Micro-economics.

Macro-Economics.

Descriptive Economics.

#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. 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

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

Men of Initiative and enterprise are not rewarded.

People do not get goods of their choice.

Income will tend to be unevenly distributed.

Profits will tend to be low.

#14. Business Economics is

Abstract and applies the tools of Macroeconomics

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.

#15. 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.

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

Firms decide whom to hire and what to produce.

#16. 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 governments, but not business fims.

households and business firms, but not the govenments.

#17. 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.

#18. 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

Krishan

Ram

Madhu

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

How will the product be placed in the market?

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?

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

determining the fair price for food.

deciding how to distribute the output of the economy.

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

determining how much income each person should be guaranteed.

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

demand

prices

efficiency

supply

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

Socialist

None of the Option

Mixed economy

Capitalist

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

Adam Smith

AC Pigou

JB Say

Alfred Marshall

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

Capital Budgeting

Business Cycles

Accounting Standards

Risk Analysis

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

Positive Economics prescribes while normative Economics describes.

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.

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.

#26. Scarcity definition of Economics is given by-

Adam Smith

Alfred Marshall

Samuelson

Robinson

#27. 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?

How are goods produced?

When are goods produced?

#28. Capital intensive technique would get chosen in a

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

developing economy where technology is poor.

developed economy where technology is better.

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

#29. 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.

Absolute scarcity and lack of resources in less developed countries.

Scarcity caused on account of excessive consumption by the rich.

#30. 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

#31. 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.

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

Macro-economic theory.

Micro-Economic theory.

Econometrics.

none of the Option

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

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 increasing inflation rate on living standards of people in India

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

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

Annuities

Long term loan

Time Deposit

Syndicated loan

#35. 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

Consumer do not have as much money as they would wish

There will always be certain level of unemployment

#36. Profit motive is a merit of

Socialism

None of the Option

Mixed economy

Capitalism

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

Right of private property

Competition

No profit, No Loss motive

Freedom of choice by the consumers

#38. 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 the central authority.

all economic decisions are taken by private entrepreneurs.

#39. Exploitation and inequality are minimal under:

None of the Option

Capitalism

Socialism

Mixed economy

#40. 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

comparing the success of command versus market economies.

guaranteering a minimum level of income for every citizen

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

applied

aggregate

experimental

none of the Option

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

the level of profits of firms.

consumer preferences.

a central planning authority.

voting done by consumers

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

Communism

Capitalism

Mixed economy

Socialism

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

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

India spends a huge amount of money on national defence.

#45. Which of the following statements is incorrect?

Business Economics is also called Managerial Econonmics.

Business Economist need not worry about macro variables.

Business Economics has a close connection with statistics

Business economics is normative in nature.

#46. Administered prices refer to:

Prices determined by an external authority which is usually the government

Prices determined by forces of demand and supply

Prices determined by sellers in the market

None of the Option

finish

Results

Quiz on Nature and Scope of Business Economics

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

#2. 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’?

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

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

#5. Which of the following statements is correct?

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

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

#8. Freedom of choice is the advantage of

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

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

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

#12. The benefit of economic study is-

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

#14. Business Economics is

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

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

#17. Economic goods are considered scarce resources because they

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

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

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

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

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

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

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

#26. Scarcity definition of Economics is given by-

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

#28. Capital intensive technique would get chosen in a

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

#30. The managerial economics

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

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

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

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

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

#36. Profit motive is a merit of

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

#38. In a mixed economy

#39. Exploitation and inequality are minimal under:

#40. The central problem in economics is that of

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

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

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

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

#45. Which of the following statements is incorrect?

#46. Administered prices refer to:

Results

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