Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Business EconomicsTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. If the elasticity of supply is greater than 1, supply is said to be: Perfectly elastic Elastic Inelastic Unit elastic None 2. The price elasticity of supply measures: Consumer sensitivity to price changes Producer sensitivity to price changes Profitability of firms Tax effects on markets None 3. Which of the following factors does not affect elasticity of supply? Time period Availability of substitutes Nature of goods Level of spare production capacity None 4. A vertical supply curve indicates that supply is: Perfectly elastic Perfectly inelastic Unit elastic Highly elastic None 5. Which of the following is not a fixed cost? Rent Salaries of permanent staff Raw material costs Insurance premiums None 6. In the long run, firms experience: Only variable costs Only fixed costs Both fixed and variable costs Zero costs None 7. If average cost is greater than marginal cost, then: Average cost is rising Average cost is falling Marginal cost is also falling Fixed cost is increasing None 8. Total revenue is calculated by multiplying: Quantity by average cost Price by quantity sold Marginal cost by quantity sold Price by marginal revenue None 9. Price skimming is a pricing strategy used to: Set low prices to gain market share Set high prices initially to recover costs quickly Match competitors' prices Set a uniform price across markets None 10. In perfect competition, the price is determined by: Individual firms Market demand and supply The government Consumer preferences None 11. Under monopolistic competition, firms: Produce identical products Are price takers Differentiate their products Have no control over prices None 12. In an oligopoly, firms are: Interdependent in decision-making Completely independent Unable to influence market prices Free from competition None 13. GDP at market prices includes: Indirect taxes but excludes subsidies Subsidies but excludes indirect taxes Both subsidies and indirect taxes Neither subsidies nor indirect taxes None 14. Which of the following is not a component of Aggregate Demand (AD)? Consumption expenditure Investment expenditure Government spending Import expenditure None 15. The difference between GDP and GNP arises because of: Net exports Net income from abroad Depreciation Taxation policies None 16. A decrease in aggregate demand can lead to: Inflation Economic growth Recession Increased employment None 17. Tariffs are: Taxes on domestic goods Taxes on imports or exports Subsidies for exporters Payments made to foreign investors None 18. The World Trade Organization (WTO) aims to: Regulate domestic trade Promote free and fair international trade Provide loans to developing countries Monitor foreign exchange rates None 19. A trade surplus occurs when: Exports exceed imports Imports exceed exports Imports equal exports There is a deficit in the balance of payments None 20. An appreciation of the domestic currency is likely to: Increase exports Decrease import Make domestic goods more expensive for foreign buyers Increase the cost of foreign goods for domestic consumers None 21. Demand forecasting is used by businesses to: Predict future demand for their products or services Determine current market share Identify historical sales trends Set prices for their products None 22. Which of the following is not a method of demand forecasting? Trend projection Regression analysis Game theory Market survey None 23. The accuracy of demand forecasting depends on: The size of the firm The skill of employees The quality of data and the method used The profitability of the business None 24. In which type of market is demand forecasting most difficult? Perfect competition Monopoly Oligopoly Dynamic and uncertain markets None 25. A business cycle refers to: The periodic fluctuations in economic activity The growth of a single industry over time The lifespan of a business The supply chain of a product None 26. Which of the following is not a phase of the business cycle? Expansion Peak Recession Budgeting None 27. A recession is characterized by: Rising GDP and employment levels Declining GDP and employment levels Increasing price levels A surplus in the balance of payments None 28. The primary cause of a business cycle is: Fluctuations in aggregate demand Changes in government policies Variations in weather conditions Inflationary pressures None 29. Environmental economics focuses on: Maximizing profits from natural resources The relationship between the economy and the environment Reducing taxes on industries Increasing government expenditure None 30. Which of the following is an example of a negative externality? Education Vaccination programs Pollution from factories Innovation in technology None 31. Carbon taxes are designed to: Penalize industries for emitting greenhouse gasec Reduce the prices of fossil fuels Encourage industrial expansion Subsidize renewable energy sources None 32. The concept of “sustainable development” includes: Rapid industrial growth Using resources without depleting them for future generations Reducing human population Maximizing resource extraction None 33. Which of the following is a characteristic of monopolistic competition? Homogeneous products Few sellers Differentiated products High barriers to entry None 34. In a monopoly, the demand curve faced by the firm is: Perfectly elastic Perfectly inelastic Downward sloping Upward sloping None 35. In an oligopolistic market, firms are likely to: Engage in price wars Be price takers Act independently without considering rivals Have no influence over market outcomes None 36. Perfect competition assumes that: There are barriers to entry and exit Firms can influence market prices There are many buyers and sellers Products are differentiated None 37. A price floor is: A minimum price set by the government above equilibrium price A maximum price set by the government below equilibrium price The price at which supply and demand are equal The level at which prices cannot fall further due to market forces None 38. Government subsidies are provided to: Encourage production or consumption of specific goods Increase government revenue Prevent inflation Discourage foreign trade None 39. Which of the following is an example of government intervention in the economy? Issuing public bonds Levying indirect taxes Imposing environmental regulations All of the above None 40. A monopoly created and supported by the government is called: Natural monopoly Legal monopoly Artificial monopoly Pure monopoly 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. 1 2 3 4 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!
