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. The concept of opportunity cost is based on the idea of: Unlimited resources Scarcity and choice Government intervention Consumer surplus None 2. Which of the following is NOT a feature of a free-market economy? Private ownership of resources Government control over production Profit motive Competition among firms None 3. In economics, capital refers to: Human effort used in production Natural resources Man-made goods used for further production Money held by bank None 4. The law of demand states that, other things remaining constant: As price increases, demand decreases As price increases, demand increases As income increases, demand decreases There is no relationship between price and demand None 5. The concept of utility in economics refers to: The total income of a firm The satisfaction obtained from consuming a good The number of goods available in the market The cost of producing a good None 6. When quantity demanded equals quantity supplied, the market is in: Disequilibrium Surplus Shortage Equilibrium None 7. Which of the following goods has an upward-sloping demand curve? Inferior goods Giffen goods Complementary goods Luxury goods None 8. When a firm experiences economies of scale, its: Average cost per unit decreases as output increases Average cost per unit increases as output increases Revenue decreases Production stop None 9. Price elasticity of demand measures: The percentage change in demand due to a price change The total number of buyers in the market The change in total revenue The cost of producing one more unit None 10. Which type of good has positive income elasticity of demand? Inferior goods Normal goods Giffen goods Public goods None 11. Which market structure has a single seller with no close substitutes? Perfect competition Monopolistic competition Monopoly Oligopoly None 12. Which type of firm maximizes profit where marginal cost equals marginal revenue? Only monopolies Only perfectly competitive firms All firms Only government-owned firms None 13. Which characteristic is common in monopolistic competition? Identical products Many sellers with product differentiation High barriers to entry Single seller None 14. Collusion among firms to fix prices is most common in: Monopoly Perfect competition Oligopoly Monopolistic competition None 15. Price discrimination occurs when a firm: Charges the same price to all consumers Charges different prices to different consumers for the same product Reduces costs through mass production Charges a higher price due to high demand None 16. Which of the following is NOT a component of GDP? Consumption Net exports Government expenditure Black market transactions None 17. A sustained increase in a country’s real GDP indicates: Economic recession Economic growth Increase in fiscal deficit Decrease in employment None 18. Which measure of national income adjusts for inflation? Nominal GDP Real GDP Gross National Product Per Capita Income None 19. Which economic indicator measures changes in the overall price level? GDP growth rate Consumer Price Index (CPI) Unemployment rate Exchange rate None 20. Which sector contributes the most to India’s GDP? Agriculture Manufacturing Services Mining None 21. Which type of inflation is caused by excessive demand for goods and services? Cost-push inflation Demand-pull inflation Hyperinflation Stagflation None 22. What is the primary function of money? To increase inflation To store wealth To facilitate trade and act as a medium of exchange To regulate government policies None 23. Which of the following is NOT a function of the Reserve Bank of India (RBI)? Issuing currency Controlling monetary policy Regulating the stock market Acting as a lender of last resort None 24. Which monetary policy tool is used to control the money supply in the economy? Income tax Foreign exchange rates Cash Reserve Ratio (CRR) Trade tariffs None 25. Which type of unemployment is caused by a recession? Structural unemployment Frictional unemployment Cyclical unemployment Seasonal unemployment None 26. Which trade policy restricts imports through high duties? Free trade policy Protectionism Globalization Dumping None 27. Which organization provides short-term financial assistance to countries facing balance of payments problems? World Bank International Monetary Fund (IMF) World Trade Organization (WTO) United Nations (UN) None 28. Which type of exchange rate is determined by market forces? Fixed exchange rate Floating exchange rate Managed exchange rate Controlled exchange rate None 29. A trade deficit occurs when: Exports exceed imports Imports exceed exports Imports and exports are equal There is no trade None 30. Which country is India’s largest trading partner? USA China UK Japan None 31. Which of the following is a characteristic of a developing economy? High industrialization High per capita income High literacy rate Large agricultural sector None 32. Which economic system is based on government ownership of resources? Capitalism Socialism Mixed economy Free-market economy None 33. Which sector is considered the backbone of the Indian economy? Agriculture Mining Manufacturing Tourism None 34. Which of the following is an example of a renewable resource? Coal Petroleum Solar energy Natural gas None 35. The Human Development Index (HDI) includes all the following indicators EXCEPT: Life expectancy Education level Gross National Income per capita Foreign exchange reserves None 36. Which organization is responsible for economic planning in India? NITI Aayog Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) International Monetary Fund (IMF) None 37. Which tax is NOT included in GST? Excise duty Customs duty Service tax VAT None 38. Which of the following is not a direct tax? GST Income Tax Corporate Tax Wealth Tax None 39. Which government initiative promotes self-reliance in India? Make in India Start-up India Digital India Atmanirbhar Bharat None 40. Which scheme aims to provide health insurance to economically weaker sections of society? Ayushman Bharat PM Kisan Yojana MNREGA Digital India Mission None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. 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