Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Fundamentals of Business Economics and ManagementTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. Which of the following is a characteristic of a monopolistic competition market? Single seller Homogeneous products Product differentiation No barriers to entry None 2. Consumer surplus is the difference between: Total utility and marginal utility What a consumer is willing to pay and what they actually pay Market price and cost price Demand and supply None 3. Price elasticity of demand is perfectly elastic when the demand curve is: Vertical Horizontal Downward sloping Upward sloping None 4. Which cost is variable in the long run but fixed in the short run? Total cost Variable cost Fixed cost Semi-variable cost None 5. The production possibility curve illustrates: Economic growth Scarcity and opportunity cost Elasticity of demand Consumer behavior None 6. The law of diminishing marginal returns applies in: The short run only The long run only Both short and long runs Perfect competition only None 7. Cross elasticity of demand is positive for: Complementary goods Substitute goods Inferior goods Normal goods None 8. Which of the following is NOT a factor of production? Land Labor Capital Consumption None 9. What does a horizontal supply curve indicate? Perfectly elastic supply Perfectly inelastic supply Increasing marginal cost Decreasing marginal cost None 10. Which type of market structure is most beneficial to consumers? Monopoly Oligopoly Perfect competition Monopolistic competition None 11. Which of the following is NOT included in Gross National Product (GNP)? Net income from abroad Depreciation Transfer payments Government spending None 12. Which curve represents the trade-off between unemployment and inflation? Demand curve Supply curve Phillips curve Laffer curve None 13. Which type of unemployment arises from a mismatch between skills and job requirements? Frictional unemployment Structural unemployment Cyclical unemployment Seasonal unemployment None 14. Hyperinflation is characterized by: A moderate rise in prices A slow rise in prices Extremely high and accelerating inflation rates No change in price levels None 15. What does the Lorenz curve represent? Distribution of income inequality Relationship between price and demand Levels of unemployment Economic growth rates None 16. When aggregate supply exceeds aggregate demand, it leads to: Inflation Deflation Stagflation Hyperinflation None 17. Which of the following is NOT a monetary policy tool? Open market operations Cash reserve ratio Public expenditure Bank rate None 18. What is the main objective of fiscal policy? Stabilizing the economy Regulating inflation Promoting economic growth All of the above None 19. When the government spends more than it earns, it results in: Revenue surplus Fiscal deficit Trade surplus Current account deficit None 20. The multiplier effect in economics refers to: A single round of spending The cumulative increase in GDP from an initial increase in spending The impact of inflation on consumption The trade-off between saving and investment None 21. Which managerial function involves deciding in advance what to do and how to do it? Organizing Planning Controlling Directing None 22. Which type of decision is routine and repetitive in nature? Strategic decision Operational decision Tactical decision Innovative decision None 23. Which management principle suggests "one superior to whom an employee is directly responsible"? Unity of command Unity of direction Discipline Authority None 24. The process of dividing work and assigning it to specific groups is known as: Delegation Coordination Departmentalization Supervision None 25. Line and staff organization ensures: Centralized control Delegation of authority Proper specialization Elimination of redundancy None 26. Motivation in Herzberg's theory is classified into: Extrinsic and intrinsic factors Hygiene factors and motivators Monetary and non-monetary incentives Tangible and intangible benefits None 27. Conflict in an organization can: Always harm productivity Be constructive or destructive depending on management Eliminate competition Improve profits without any drawbacks None 28. The Big Five personality traits do NOT include: Conscientiousness Extraversion Intelligence Openness to experience None 29. Which theory of motivation focuses on “expectancy, instrumentality, and valence”? Equity theory Expectancy theory Goal-setting theory Maslow's hierarchy of needs None 30. In a group, norms refer to: Tasks assigned to members Unwritten rules about behavior Status differences among members Group decision-making processes None 31. Which of the following is an example of downward communication? Employee suggestions to management Instructions from a manager to subordinates Peer-to-peer discussions Employee feedback None 32. Active listening involves: Focusing on the speaker Responding thoughtfully Avoiding interruptions All of the above None 33. The grapevine is an example of: Vertical communication Formal communication Informal communication Written communication None 34. Which communication method is the fastest? Written communication Oral communication Non-verbal communication Visual communication None 35. The primary purpose of feedback in communication is to: Avoid redundancy Ensure understanding Simplify the process Reduce time dela None 36. Which leadership style involves high task orientation and high relationship orientation? Autocratic Democratic Transformational Transactional None 37. A monopoly is inefficient because it: Produces at the lowest average cost Maximizes consumer surplus Results in deadweight loss Ensures high levels of competition None 38. In a project, the critical path represents: The shortest time to complete the project The longest sequence of dependent activities Activities with no dependencies The costliest tasks None 39. The break-even analysis is used to determine: Maximum profit Minimum cost No profit, no loss point Total revenue None 40. In economics, "invisible hand" refers to: Government intervention in the market Self-regulating nature of the market International trade policies Economic decisions made by firms 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. 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