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 NOT a feature of perfect competition? Large number of buyers and sellers Free entry and exit of firms Homogeneous products Price discrimination None 2. A movement along the supply curve occurs when: Price changes Technology changes Production costs change Government policies change None 3. If the price of a good rises, the demand for its substitute will likely: Increase Decrease Stay the same Become perfectly inelastic None 4. An indifference curve is convex to the origin due to: Law of diminishing marginal returns Law of diminishing marginal rate of substitution Increasing marginal cost Increasing returns to scale None 5. What does the slope of a production possibility frontier (PPF) represent? Marginal utility Marginal rate of substitution Opportunity cost Elasticity of demand None 6. Marginal cost is calculated as: Change in fixed cost / Change in output Change in total cost / Change in output Total cost / Total output Average cost / Output None 7. A vertical demand curve indicates: Perfectly elastic demand Perfectly inelastic demand Unitary elastic demand Downward sloping demand None 8. If demand decreases and supply increases simultaneously, the price of the good will likely: Increase Decrease Stay constant Fluctuate None 9. The break-even point occurs when: Total revenue equals fixed cost Total revenue equals variable cost Total revenue equals total cost Marginal cost equals fixed cost None 10. Which of the following is a normative statement? Inflation is 4% this year Unemployment is higher than last year The government should increase taxes to reduce inequality Interest rates have been reduced None 11. The sum of all factor incomes earned by residents of a country is called: Gross Domestic Product (GDP) Net National Product (NNP) Gross National Income (GNI) Net Domestic Product (NDP) None 12. An increase in aggregate demand will lead to: Inflationary pressure Deflation Reduced unemployment Both a) and c) None 13. If the inflation rate decreases but remains positive, the economy is experiencing: Deflation Disinflation Hyperinflation Stagflation None 14. Which of the following is NOT included in the calculation of GDP? Consumer spending Government spending Black market activities Net exports None 15. A country’s balance of payments accounts include: Current account and fiscal account Current account and capital account Fiscal account and monetary account Monetary account and capital account None 16. Which type of unemployment occurs due to fluctuations in the business cycle? Structural Frictional Cyclical Seasonal None 17. In Keynesian economics, government intervention is required to: Encourage laissez-faire markets Achieve full employment Control monopoly power Stabilize the balance of trade None 18. The multiplier effect depends on: Marginal propensity to consume Marginal propensity to save Both a) and b) None of the above None 19. Which of the following is a characteristic of a developing economy? a High per capita income Dominance of agriculture High levels of industrialization Extensive social security systems None 20. Stagflation is characterized by: High inflation and low unemployment Low inflation and low growth High inflation and high unemployment Low inflation and high unemployment None 21. Who proposed the 14 principles of management? F.W. Taylor Henry Fayol Max Weber Peter Drucker None 22. The process of deciding the objectives of an organization and preparing policies to achieve them is known as: Directing Organizing Planning Controlling None 23. The concept of “span of control” refers to: Levels of hierarchy Number of employees managed by one supervisor Degree of centralization Decision-making authority None 24. The scalar chain principle emphasizes: Unity of command Proper communication flow Decentralization Job rotation None 25. A contingency approach to management suggests that: A fixed solution works in all situations Management depends on situational factors Strict rules should always be followed Planning is unnecessary None 26. Which leadership style involves decision-making by the leader without consulting subordinates? Democratic Autocratic Laissez-faire Transformational None 27. According to Maslow, which need is at the highest level? Safety needs Esteem needs Self-actualization Physiological needs None 28. Job enrichment involves: Increasing tasks of the same level Adding responsibilities and challenges Reducing job complexity Offering monetary incentives None 29. The grapevine in an organization refers to: Formal communication Informal communication Vertical communication Lateral communication None 30. Equity theory focuses on: Job satisfaction Fair treatment of employees Power distribution Leadership styles None 31. Which of the following is a barrier to effective communication? Clear message Noise Proper feedback Conciseness None 32. The most permanent form of communication is: Oral communication Written communication Non-verbal communication Face-to-face communication None 33. Listening is an essential part of: Verbal communication only Non-verbal communication only Management styles only Management styles only None 34. Feedback in communication helps in: Increasing noise Ensuring understanding Reducing transparency Avoiding redundancy None 35. Which communication type involves employees of the same level? Upward communication Horizontal communication Downward communication Grapevine communication None 36. A monopolist’s demand curve is the same as the: Market supply curve Average revenue curve Marginal cost curve Marginal revenue curve None 37. Economic profit is calculated as: Total revenue - Explicit costs Total revenue - Total costs (including implicit costs) Total revenue - Implicit costs Total costs - Explicit costs None 38. Which of the following is NOT a type of planning? Strategic Tactical Operational Arbitrary None 39. Decentralization refers to: Concentrating authority Delegating decision-making powers Eliminating middle management Establishing new branches None 40. An upward-sloping long-run supply curve is seen in: Increasing cost industries Constant cost industries Decreasing cost industries Monopolistic industries None 1 out of 4 Great job on taking the INCOC Test! 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