Business Economics Quiz | Business Economics MCQs and Answers for competitive exams

Questions
81 The principal reasons behind economic problems :
A Unlimited Wants
B Limited or Scarce Resources
C Alternative uses of Means
D All the above

Answer: Limited or Scarce Resources
82 It is the study of economic actions of individuals and small groups of individuals:
A Micro – Economics
B Macro Economics
C Managerial Economics
D Business Economics

Answer: Micro – Economics
83 Moral hazard…
A Occurs when managers pursue profit maximization without regard to the interests of society in general.
B Is the cause of principal-agent problems.
C Occurs only rarely in modern corporations.
D Exists when either party to a contract has an incentive to cancel the contract.

Answer: Is the cause of principal-agent problems.
84 Economic profit is…
A The difference between total revenue and explicit costs.
B The difference between total revenue and the opportunity cost of all the resources used in production.
C The difference between accounting profit and explicit costs.
D The difference between accounting profit and the opportunity cost of the market-supplied resources used by the firm.

Answer: The difference between total revenue and the opportunity cost of all the resources used in production.
85 The value of an entrepreneur‟s resources that she uses in production are known as:
A Implicit costs.
B Explicit costs
C Sunk costs.
D Operating expenses.

Answer: Implicit costs.
86 An input should be so allocated that the value added by the last unit is the same in all cases.
A Opportunity Cost Principle
B Equi-Marginal Principle
C Discounting Principle
D Incremental Principle

Answer: Equi-Marginal Principle
87 The term `Economics‟ in English language has its origin in word.
A Greek
B Italic
C Latin
D Indian

Answer: Greek
88 Economics includes the following economic activities:
A Production
B Consumption
C Exchange
D All of above

Answer: All of the above
89 It refers to the determination of prices of all goods and services by the interaction of the forces of demand and supply without any external interference.
A Product-mechanism
B Price-mechanism
C Cost-mechanism
D None of these

Answer: Price-mechanism
90 The principle reasons behind economic problems
A Unlimited wants
B Limited or Scarce of Means
C Alternatives Uses of Means
D All of the above

Answer: All of the above
junior administrative assistant jaa test series