Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Business Economics Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. If the price of a complementary good increases, the demand for the main product will: Increase Decrease Remain unchanged Become perfectly elastic None 2. Which of the following is NOT a type of demand elasticity? Price elasticity Income elasticity Supply elasticity Cross elasticity None 3. If the demand for a good is perfectly inelastic, a price increase will: Reduce quantity demanded to zero Have no effect on quantity demanded Increase quantity demanded Make demand perfectly elastic None 4. An inferior good is one where: Demand increases as income increases Demand decreases as income increases Demand remains constant Demand increases as price increases None 5. What happens to the demand for a normal good when consumer income increases? Increases Decreases Remains constant Becomes inelastic None 6. The supply curve generally slopes: Upward Downward Horizontal Vertical None 7. A rightward shift in the supply curve indicates: An increase in supply A decrease in supply No change in supply A fall in price None 8. Market equilibrium is achieved when: Supply exceeds demand Demand exceeds supply Quantity demanded equals quantity supplied Price remains constant None 9. Which of the following will NOT cause a shift in the supply curve? Changes in production technology Changes in input prices Changes in consumer tastes Government taxation None 10. A price floor set above equilibrium price will result in: Shortage Surplus Equilibrium Inflation None 11. Fixed costs are costs that: Change with output Remain constant regardless of output Increase with sales revenue Are variable in the long run None 12. Marginal cost is the cost of: Producing one more unit of a good Producing all units of output The fixed costs of production Marketing a product None 13. Which of the following is an implicit cost? Wages paid to workers Rent paid for an office Interest on borrowed money Foregone salary of an entrepreneur None 14. When total revenue is equal to total cost, the firm is: Making a profit Making a loss Breaking even Operating under perfect competition None 15. Increasing returns to scale means that: Doubling inputs leads to less than double output Doubling inputs leads to more than double output Doubling inputs leads to exactly double output There is no effect on output None 16. In a perfectly competitive market, firms earn: Normal profit in the long run Supernormal profit in the long run Loss in the short run No revenue None 17. Which market structure has few sellers and interdependence among firms? Perfect competition Monopoly Oligopoly Monopolistic competition None 18. A firm under monopolistic competition differentiates its product by: Lowering price only Advertising and branding Restricting entry of new firms Forming a cartel None 19. Which pricing strategy involves selling a product at a very low price to eliminate competitors? Cost-plus pricing Penetration pricing Skimming pricing Psychological pricing None 20. Price rigidity is a feature of: Perfect competition Monopolistic competition Monopoly Oligopoly None 21. Which of the following is NOT a component of GDP? Consumption Investment Government spending Stock market transactions None 22. Which type of unemployment occurs due to changes in seasons? Frictional unemployment Structural unemployment Seasonal unemployment Cyclical unemployment None 23. A budget deficit occurs when: Government expenditure is equal to its revenue Government expenditure exceeds its revenue Government revenue exceeds its expenditure Government debt is reduced None 24. Which of the following is a contractionary fiscal policy measure? Increasing government spending Reducing taxes Reducing government spending Providing subsidies None 25. Hyperinflation refers to: A mild increase in prices A rapid and uncontrolled increase in prices A decrease in prices A steady inflation rate None 26. Which exchange rate system is determined by market forces? Fixed exchange rate Floating exchange rate Dual exchange rate Managed exchange rate None 27. Dumping occurs when: A country imports more than it exports A country sells goods at a lower price in a foreign market A country increases tariffs on imports Foreign investments are restricted None 28. Which financial institution provides short-term loans to countries facing balance of payment crises? World Bank International Monetary Fund (IMF) WTO ADB None 29. An import quota is: A limit on the quantity of imports A tax on imported goods A subsidy on exports A free trade agreement None 30. Which trade policy promotes free trade among member countries? Protectionism Autarky Import substitution Regional trade agreements None 31. Which economic system is based on private ownership and free markets? Socialist economy Capitalist economy Mixed economy Traditional economy None 32. A situation where a single buyer controls the market is called: Monopoly Oligopoly Monopsony Duopoly None 33. The Phillips Curve shows the relationship between: Inflation and GDP growth Inflation and unemployment Interest rates and money supply Demand and supply None 34. Which of the following is NOT a direct tax? Income tax Corporate tax Goods and Services Tax (GST) Wealth tax None 35. Which economic indicator measures the overall price level changes in an economy? GDP growth rate Consumer Price Index (CPI) Fiscal deficit Exchange rate None 36. The total value of goods and services produced within a country in a year is called: Gross National Product (GNP) Gross Domestic Product (GDP) Net National Income (NNI) Personal Income None 37. Which sector contributes the most to India's GDP? Agriculture Manufacturing Services Mining None 38. Which factor is NOT included in the calculation of national income? Wages and salaries Profits of businesses Transfer payments Rent and interest income None 39. Human Development Index (HDI) considers which of the following factors? Economic growth, inflation, and unemployment Life expectancy, education, and per capita income Inflation, exports, and fiscal policy Government spending, interest rates, and investment None 40. Which of the following is a sustainable development goal (SDG) set by the United Nations? Zero hunger Trade protectionism Increased tariffs Higher fiscal deficit None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. 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