Test CS 2201 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. Which of the following is NOT an economic activity? Teaching in a school Cooking food for family Practicing as a doctor Running a business None 2. Microeconomics deals with: The overall economy The behavior of individual economic agents International trade Economic policies of a country None 3. Which of the following is a characteristic of business economics? Pure theoretical study Deals with policy formulation Concerned with unlimited wants Not related to business decision-making None 4. The basic problem of economics is: Inflation Unemployment Scarcity of resources Government intervention None 5. In business economics, opportunity cost refers to: The cost of all alternatives The cost of the next best alternative foregone The cost of production The cost of raw materials None 6. The Law of Demand states that as price increases, demand: Increases Decreases Remains constant Becomes negative None 7. Which of the following is NOT a determinant of demand? Price of the product Consumer preferences Government policies Production technology None 8. The demand curve generally slopes: Upward Downward Horizontal Vertical None 9. Elasticity of demand measures: Responsiveness of demand to price changes Cost variations in production Supply fluctuations Market equilibrium None 10. If the price of a commodity increases and demand remains unchanged, the demand is said to be: Elastic Inelastic Unitary elastic Perfectly elastic None 11. In the short run, which factor of production is considered fixed? Labor Land Raw material Capital None 12. Total cost is the sum of: Fixed cost and marginal cost Variable cost and marginal cost Fixed cost and variable cost Variable cost and opportunity cost None 13. The Law of Diminishing Returns applies when : Additional input results in lower marginal output Total cost is decreasing Production increases at a constant rate There are increasing returns to scale None 14. The break-even point is when: Total revenue = Total cost Fixed cost = Variable cost Profit = Maximum Demand = Supply None 15. Economies of scale occur when: Average costs fall as output increases Total revenue exceeds total cost More labor is employed Marginal cost exceeds average cost None 16. Which market structure has a single seller? Monopoly Oligopoly Perfect competition Monopolistic competition None 17. In perfect competition, firms are: Price makers Price takers Market controllers Government regulated None 18. Price discrimination occurs when: A firm charges different prices to different consumers for the same product Prices remain constant Supply exceeds demand Goods are sold in one market only None 19. Collusion among firms is most likely in: Perfect competition Monopoly Oligopoly Monopolistic competition None 20. A monopolist maximizes profit where: Marginal revenue = Marginal cost Total cost = Total revenue Demand = Supply Fixed cost = Variable cost None 21. GDP measures: Total value of goods and services produced in a country Growth of employment Government policies Price fluctuations None 22. Inflation refers to: Decrease in general price levels Increase in general price levels Increase in employment Economic recession None 23. Monetary policy is controlled by: Government Central Bank Public sector Private companies None 24. Fiscal policy involves: Government spending and taxation Controlling money supply Stock market operations Production planning None 25. When unemployment is high, the government should: Increase interest rates Reduce money supply Increase public spending Reduce fiscal deficit None 26. The four phases of a business cycle are: Inflation, deflation, recession, and expansion Boom, recession, depression, and recovery Production, consumption, savings, and investment Supply, demand, pricing, and equilibrium None 27. Which phase of the business cycle is characterized by high employment and high economic activity? Recession Depression Boom Recovery None 28. Economic growth is measured by: Changes in government spending Increase in real GDP Changes in inflation rate Reduction in fiscal deficit None 29. Recession is generally characterized by: High inflation and increasing GDP Falling GDP and rising unemployment Low interest rates and high demand Rising wages and high investment None 30. Which of the following can lead to economic growth? Increased labor productivity Decrease in foreign investments High unemployment rates Strict import restrictions None 31. The main function of commercial banks is to: Print currency Control government policies Accept deposits and give loans Regulate the stock market None 32. Which type of inflation occurs due to excessive demand for goods and services? Cost-push inflation Demand-pull inflation Hyperinflation Stagflation None 33. Monetary policy tools include: Government taxation and public expenditure Open market operations and interest rates Trade policies and foreign exchange rates Budget deficits and surplus None 34. The Reserve Bank of India (RBI) controls the: Direct taxation system Money supply and interest rates Foreign trade Stock market regulations None 35. Which of the following is an example of expansionary monetary policy Increasing tax rates Raising interest rates Increasing government spending Reducing cash reserve ratio (CRR) None 36. The difference between a country's exports and imports is called: Fiscal deficit Balance of trade Budget surplus Capital formation None 37. Globalization refers to: Closing the economy from foreign trade Increasing trade restrictions Integration of economies worldwide Reducing domestic investments None 38. A tariff is a: Tax on imported goods Export subsidy Foreign direct investment Currency exchange policy None 39. Which international organization regulates world trade? International Monetary Fund (IMF) World Trade Organization (WTO) United Nations (UN) Organization of Petroleum Exporting Countries (OPEC) None 40. Which of the following is an advantage of international trade? Decrease in production efficiency Restriction of new technology Availability of a variety of goods and services Reduction in employment opportunities 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 !! 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