Quiz on Nature and Scope of Business Economics

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

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.

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

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

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

Reducing inequality should be a major priority for mixed economies.

Planned economies allocate resources via government departments.

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

#3. 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

Long term loan

Annuities

Syndicated loan

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

We must develop ways to decrease our individual wants.

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

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

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.

#6. 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

Unemployment rate decreases with industrialization

Economics is a social science that studies human behaviour.

#7. 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

#8. 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.

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

Capitalism

Mixed economy

Communism

Socialism

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

Consumer do not have as much money as they would wish

Resources are not always allocated in an optimum way

Output is restricted to the limited availability of resources

There will always be certain level of unemployment

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

none of the Option

aggregate

applied

experimental

#12. In a mixed economy

all economic decisions are taken by the central authority.

all economic decisions are taken by private entrepreneurs.

none of the Option

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

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

The resources are limited and The wants are unlimited

The wants are unlimited

The resources are unlimited

The resources are limited

#14. 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

Madhu

Vinod

Ram

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

A mythical economy where everybody is a billionaire.

Any economy where income is distributed equally among its people.

None of the Option

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

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

AC Pigou

Alfred Marshall

Adam Smith

JB Say

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

How are goods produced?

Who consumes what?

Who produces what?

When are goods produced?

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

Socialist

Mixed economy

None of the Option

Capitalist

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

Right of private property

Competition

Freedom of choice by the consumers

No profit, No Loss motive

#20. The central problem in economics is that of

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

guaranteering a minimum level of income for every citizen

#21. 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.

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

consumer goods

capital goods

public goods

agricultural goods

#23. 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.

Macro-Economics.

Normative economics.

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

Income will tend to be unevenly distributed.

Men of Initiative and enterprise are not rewarded.

Profits will tend to be low.

People do not get goods of their choice.

#25. Capital intensive technique would get chosen in a

developed economy where technology is better.

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.

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

demand

efficiency

supply

prices

#27. 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

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

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

deciding how to distribute the output of the economy.

determining the fair price for food.

determining how much income each person should be guaranteed.

#29. Profit motive is a merit of

Capitalism

Mixed economy

Socialism

None of the Option

#30. 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 normative in nature.

Business Economics is also called Managerial Econonmics.

#31. Administered prices refer to:

Prices determined by sellers in the market

None of the Option

Prices determined by forces of demand and supply

Prices determined by an external authority which is usually the government

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

The price of mangoes.

The national economy’s annual rate of growth.

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

The quantity of mangoes produced for the mangoes market.

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

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

Finding the causes of failure of ABC Ltd.

Determining the GNP of India.

Identifying the causes of inflation in India.

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

Business Cycles

Capital Budgeting

Accounting Standards

Risk Analysis

#35. Scarcity definition of Economics is given by-

Alfred Marshall

Adam Smith

Robinson

Samuelson

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

Absolute scarcity and lack of resources in less developed countries.

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.

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

a central planning authority.

the level of profits of firms.

voting done by consumers

consumer preferences.

#38. Which of the following statements is correct?

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

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

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

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

households and governments, but not business fims.

local and state governments, but not the federal govenment.

households and business firms, but not the govenments.

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

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

Micro-Economic theory.

Econometrics.

none of the Option

Macro-economic theory.

#41. The managerial economics

Trains managers how to behave in recession

Is just a theory concept

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

Provides the tools which explain various concepts

#42. Freedom of choice is the advantage of

Communism

Capitalism

None of the Option

Socialism

#43. Exploitation and inequality are minimal under:

Mixed economy

Capitalism

None of the Option

Socialism

#44. 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

#45. 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?

How will the product be placed in the market?

Should our firm be in this business?

#46. 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.

Incorporates tools from multiple disciplines.

Involves practical application of economic theory in business decision making

Finish

Results

Quiz on Nature and Scope of Business Economics

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

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

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

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

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

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

#7. The benefit of economic study is-

#8. Economic goods are considered scarce resources because they

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

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

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

#12. In a mixed economy

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

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

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

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

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

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

#20. The central problem in economics is that of

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

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

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

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

#25. Capital intensive technique would get chosen in a

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

#27. 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’?

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

#29. Profit motive is a merit of

#30. Which of the following statements is incorrect?

#31. Administered prices refer to:

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

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

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

#35. Scarcity definition of Economics is given by-

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

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

#38. Which of the following statements is correct?

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

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

#41. The managerial economics

#42. Freedom of choice is the advantage of

#43. Exploitation and inequality are minimal under:

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

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

#46. Business Economics is

Results

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