Quiz on Nature and Scope of Business Economics

#1. 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

#2. 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 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.

Positive Economics prescribes while normative Economics describes.

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

the level of profits of firms.

voting done by consumers

consumer preferences.

a central planning authority.

#4. 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

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

Accounting Standards

Business Cycles

Capital Budgeting

Risk Analysis

#6. 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 on steel prices when more steel is imported

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

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

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

Socialist

Capitalist

Mixed economy

None of the Option

#8. Freedom of choice is the advantage of

Communism

Capitalism

None of the Option

Socialism

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

The resources are unlimited

The resources are limited and The wants are unlimited

The resources are limited

The wants are unlimited

#10. The managerial economics

Is just a theory concept

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

#11. Capital intensive technique would get chosen in a

developing economy where technology is poor.

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

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

developed economy where technology is better.

#12. 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.

Descriptive Economics.

Macro-Economics.

#13. Economic goods are considered scarce resources because they

are limited to man made goods.

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

are of primary importance in satisfying social requirements.

cannot be increased in quantity.

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

People do not get goods of their choice.

Income will tend to be unevenly distributed.

Profits will tend to be low.

Men of Initiative and enterprise are not rewarded.

#15. Administered prices refer to:

None of the Option

Prices determined by forces of demand and supply

Prices determined by sellers in the market

Prices determined by an external authority which is usually the government

#16. 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?

How are goods produced?

Who consumes what?

Who produces what?

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

There will always be certain level of unemployment

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

#18. Which of the following statements is incorrect?

Business Economist need not worry about macro variables.

Business economics is normative in nature.

Business Economics has a close connection with statistics

Business Economics is also called Managerial Econonmics.

#19. Exploitation and inequality are minimal under:

Mixed economy

Capitalism

None of the Option

Socialism

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

Annuities

Time Deposit

Long term loan

Syndicated loan

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

Absolute scarcity and lack of resources in less developed countries.

Scarcity caused on account of excessive consumption by the rich.

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

Scarcity during times of business failure and natural calamities.

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

How should we decrease unemployment in the economy?

Should our firm be in this business?

How will the product be placed in the market?

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

#23. 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 decide whom to hire and what to produce.

Firms aim at maximizing profits.

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

#24. 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.

comparing the success of command versus market economies.

guaranteering that production occurs in the most efficient manner

guaranteering a minimum level of income for every citizen

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

India spends a huge amount of money on national defence.

Unemployment rate decreases with industrialization

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

Economics is a social science that studies human behaviour.

#26. Business Economics is

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

Incorporates tools from multiple disciplines.

#27. 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 quantity of mangoes produced for the mangoes market.

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

#28. Profit motive is a merit of

Socialism

Mixed economy

Capitalism

None of the Option

#29. 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.

#30. 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

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

We must develop ways to decrease our individual 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

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

aggregate

experimental

applied

none of the Option

#33. Scarcity definition of Economics is given by-

Alfred Marshall

Robinson

Adam Smith

Samuelson

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

A mythical economy where everybody is a billionaire.

None of the Option

Any economy where income is distributed equally among its people.

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

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

all aspects of scarcity.

big businesses.

the decisions of individual businesses and people.

the national economy and the global economy asa whole.

#36. In a mixed economy

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

all economic decisions are taken by the central authority.

none of the Option

all economic decisions are taken by private entrepreneurs.

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

Adam Smith

AC Pigou

JB Say

Alfred Marshall

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

supply

prices

demand

efficiency

#39. The benefit of economic study is-

It helps in identifying problems

It gives exact solutions to every problem

It enable to examine a problem in its right perspective

It ensure that all problems will be appropriately tackled

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

Identifying the causes of inflation in India.

Determining the GNP of India.

Finding the causes of failure of ABC Ltd.

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

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

Freedom of choice by the consumers

Right of private property

Competition

No profit, No Loss motive

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

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.

local and state governments, but not the federal govenment.

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

Socialism

Capitalism

Communism

Mixed economy

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

public goods

consumer goods

capital goods

agricultural goods

#45. 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

Micro economics and Macro economics

Macro economics

Micro economics

#46. 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.

Reducing inequality should be a major priority for mixed economies.

Planned economies allocate resources via government departments.

finish

Results

Quiz on Nature and Scope of Business Economics

#1. Which of the following statements is correct?

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

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

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

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

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

#8. Freedom of choice is the advantage of

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

#10. The managerial economics

#11. Capital intensive technique would get chosen in a

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

#13. Economic goods are considered scarce resources because they

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

#15. Administered prices refer to:

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

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

#18. Which of the following statements is incorrect?

#19. Exploitation and inequality are minimal under:

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

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

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

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

#24. The central problem in economics is that of

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

#26. Business Economics is

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

#28. Profit motive is a merit of

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

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

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

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

#33. Scarcity definition of Economics is given by-

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

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

#36. In a mixed economy

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

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

#39. The benefit of economic study is-

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

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

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

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

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

#45. 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’?

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

Results

Learn smart. Grow smart.