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. What are the three fundamental economic problems faced by all economies? What to produce, where to produce, how to sell What to produce, how to produce, for whom to produce How to maximize profits, how to reduce costs, how to increase demand What goods to import, how to export, how to control inflation None 2. Which of the following is an example of a centrally planned economy? United States India North Korea Japan None 3. A mixed economy is a combination of: Capitalism and communism Public sector and private sector Agriculture and industry Domestic and international trade None 4. What does the production possibilities curve (PPC) illustrate? Unlimited resources Scarcity and opportunity cost Demand and supply equilibrium Inflation trends None 5. Which of the following is NOT a characteristic of a free market economy? Private ownership of resources Government control over all industries Competition among businesses Price determination by market forces None 6. The law of diminishing marginal utility states that as a person consumes more units of a good, the additional satisfaction from each extra unit: Increases Decreases Remains constant Becomes zero None 7. Which of the following is NOT a determinant of demand? Price of the product Income of the consumer Cost of production Consumer preferences None 8. An increase in the price of a normal good will generally lead to: Increase in demand Decrease in demand No change in demand Increase in supply None 9. If the price elasticity of demand is greater than 1, the demand is considered: Inelastic Unit elastic Elastic Perfectly inelastic None 10. Which of the following costs remains constant per unit but varies in total? Fixed cost Variable cost Total cost Marginal cost None 11. The break-even point is the level at which: Total revenue exceeds total cost Total cost equals total revenue Fixed cost equals variable cost Profit is maximized None 12. Marginal cost is the: Total cost divided by output Additional cost incurred by producing one more unit Difference between fixed and variable costs Difference between revenue and profit None 13. If a firm’s total revenue is greater than its total cost, the firm is making: A loss A profit Zero economic profit A break-even outcome None 14. In the short run, a firm should continue producing as long as: Price is greater than average fixed cost Price is greater than average variable cost Marginal cost is greater than total cost Fixed costs are increasing None 15. National income is the total income earned by: The government Citizens of a country Firms and businesses The entire economy None 16. Which of the following is NOT included in GDP calculations? Wages and salaries Profits of companies Transfer payments (like pensions) Government spending on infrastructure None 17. The formula for GDP using the expenditure approach is: C + I + G + (X - M) C + S + T P + L + C + E Revenue - Cost None 18. Which of the following is an example of a leading economic indicator? Unemployment rate Stock market performance Inflation rate GDP growth rate None 19. If real GDP increases, it means: The price level has increased The country’s output has increased Inflation has occurred The government’s budget has increased None 20. Which type of inflation occurs when demand exceeds supply? Cost-push inflation Demand-pull inflation Hyperinflation Structural inflation None 21. Which of the following is a tool used to control inflation? Increasing interest rates Decreasing taxes Printing more money Increasing government spending None 22. Which phase of the business cycle is characterized by falling output and rising unemployment? Expansion Peak Recession Recovery None 23. Which type of unemployment occurs due to changes in the business cycle? Frictional unemployment Structural unemployment Cyclical unemployment Seasonal unemployment None 24. Hyperinflation refers to: A mild increase in prices A rapid and uncontrolled increase in prices A decrease in prices A steady inflation rate None 25. In which market structure are there many buyers and sellers dealing in identical products? Monopoly Oligopoly Perfect competition Monopolistic competition None 26. Which of the following is a characteristic of a monopoly? Many sellers Free entry and exit A single seller with no close substitutes Price taker behavior None 27. What type of market structure exists when a few large firms dominate an industry? Monopoly Oligopoly Perfect competition Monopsony None 28. Which of the following best describes monopolistic competition? Identical products with many firms Few firms producing homogeneous goods Many firms selling slightly differentiated products A single seller controlling the market None 29. Which of the following is NOT a characteristic of oligopoly? Few dominant firms High barriers to entry Price-taking behavior Interdependence among firms None 30. Which of the following is NOT a function of money? Medium of exchange Store of value Unit of account Creation of resources None 31. Which of the following is the central bank of India? State Bank of India Reserve Bank of India ICICI Bank Punjab National Bank None 32. Which instrument is used by the Reserve Bank of India to control money supply? Cash Reserve Ratio (CRR) Balance of Payments (BoP) Fiscal Deficit Inflation Index None 33. Which type of deposit account offers the highest liquidity? Fixed Deposit Account Savings Account Current Account Recurring Deposit Account None 34. Which of the following is NOT a function of commercial banks? Accepting deposits Issuing currency Granting loans Facilitating payments None 35. Which of the following is NOT a component of the Balance of Payments (BoP)? Current Account Capital Account Financial Account Budget Account None 36. Which international organization deals with global trade regulations? World Bank International Monetary Fund (IMF) World Trade Organization (WTO) United Nations (UN) None 37. What happens when a country's exports exceed its imports? Trade surplus Trade deficit Fiscal deficit Inflation None 38. Which of the following is a trade barrier? Tariffs Globalization Free trade agreements Exchange rate stability None 39. Which of the following is an example of foreign direct investment (FDI)? A foreign company setting up a factory in India An Indian citizen buying shares in a U.S. company Sending money abroad as a remittance Short-term loans to foreign governments None 40. Which of the following is an example of a fixed cost? Wages of temporary workers Cost of raw materials Rent of factory premises Electricity used in production 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. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
