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Free download in PDF Business Economics Multiple Choice Questions with Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams. These short solved questions or quizzes are provided by Gkseries.
61
Income flow is also known as --.
[A]
Product Flow
[B]
Money flow
[C]
Profit flow
[D]
Cash flow
62
According to profit maximization theory of the firm, management.
[A]
Decides output level which maximizes revenue
[B]
Output level which minimizes cost.
[C]
Output level which maximizes difference between the two
[D]
None of these
Answer: Output level which maximizes difference between the two
63
According to Simon if a firm fails to achieve its target initially results in:
[A]
A sense of helplessness
[B]
Search behavior
[C]
Sacking of its managerial team
[D]
Appropriate revision of the aspiration level
64
It is the difference between total revenue and total economic cost
[A]
Accounting Profit
[B]
Economic Profit
[C]
Gross Profit
[D]
Net Profit
65
Which of the following issues is related to microeconomics?
[A]
The impact of oil prices on car production
[B]
The impact of money on inflation
[C]
The impact of technology on economic growth
[D]
The impact of the deficit on saving
Answer: The impact of oil prices on car production
66
The word economy comes from the Greek word for
[A]
"Environment."
[B]
"One who participates in a market."
[C]
"One who manages a household."
[D]
"Conservation.“
Answer: "One who manages a household."
67
Economics deals primarily with the concept of
[A]
Poverty.
[B]
Scarcity.
[C]
Change.
[D]
Power.
68
The opportunity cost of an item is
[A]
The number of hours needed to earn money to buy it.
[B]
What you give up to get that item.
[C]
Always less than the dollar value of the item.
[D]
Always equal to the dollar value of the item
Answer: What you give up to get that item.
69
Factors of production are :
[A]
Inputs into the production process.
[B]
Weather, social, and political conditions that affect production.
[C]
The physical relationships between economic inputs and outputs.
[D]
The mathematical calculations firms make to determine production.
Answer: Inputs into the production process.
70
In the circular-flow diagram,
[A]
Firms are sellers in the resource market and the product market.
[B]
Households are sellers in the resource market.
[C]
Firms are buyers in the product market.
[D]
Spending on goods and services flow from firms to households.
Answer: Households are sellers in the resource market.
71
In the circular-flow diagram,
[A]
Spending on goods and services flow from firms to households.
[B]
Goods and services flow from households to firms.
[C]
Factors of production flow from firms to households.
[D]
Income from factors of production flows from firms to households.
Answer: Spending on goods and services flow from firms to households.
72
Scarcity is a condition that exists when
[A]
There is a fixed supply of resources.
[B]
There is a large demand for a product.
[C]
Resources are not able to meet the entire demand for a product.
[D]
All of the above.
Answer: Resources are not able to meet the entire demand for a product.
73
One of the most important differences between a firm‟s economic profit and its accounting profit is the subtraction of:
[A]
Costs incurred when hiring labor, capital, and land.
[B]
Any explicit cost incurred by the entrepreneur for risk taking.
[C]
Any implicit charges for the use of capital owned by the entrepreneur.
[D]
Any taxes on the retained earnings of the firm.
Answer: Any implicit charges for the use of capital owned by the entrepreneur.
74
That profit functions as an incentive for innovation was among the key contributions to economic thought by:
[A]
Karl Marx.
[B]
Frank Knight.
[C]
Joseph Schumpeter.
[D]
Adam Smith.
Answer: Joseph Schumpeter.
75
Economic profit is…
[A]
Negative when costs exceed revenues.
[B]
Generally larger than accounting profit.
[C]
a theoretical measure of a firm's performance and has little value in real world decision- making.
[D]
Calculated by subtracting implicit costs of using owner-supplied resources from the firm's total revenue.
Answer: Negative when costs exceed revenues.
76
In a circular flow model, the real variables are:
[A]
Money that flows from the factor market to the households.
[B]
Only the goods and services that are produced.
[C]
Only the resources that are used.
[D]
Both the goods and services produced and the resources that are used.
Answer: Both the goods and services produced and the resources that are used.
77
Income and revenues that are created within a country
[A]
always will remain within that country
[B]
Can leave that country only when goods are exported.
[C]
Can leave that country when goods are imported
[D]
Can leave that country when capital flows into that country's financial institutions.
Answer: Can leave that country when goods are imported
78
The three fundamental questions of economic organization are:
[A]
When, for whom, and how.
[B]
How, what, and for whom.
[C]
Who, how, and when.
[D]
What, who, and why.
Answer: How, what, and for whom.
79
The ultimate effect of the "invisible hand" of Adam Smith is that, in a competitive economy, everyone:
[A]
Benefits if each acts in his/her own interest.
[B]
Will increase their profits in a free market.
[C]
Should act to maximize economic growth.
[D]
Should act to promote the public interest.
Answer: Benefits if each acts in his/her own interest.
80
Invisible hand theory is give by :
[A]
Lord Robbins
[B]
Samuelson
[C]
Marshal
[D]
Adam Smith
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