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. Economics is: Normative science Positive science Human science Political science None 2. Scarcity definition was given by: L. Robbins Alfred Marshall J. M. Keynes Adam Smith None 3. Consumer's surplus was propounded by: Alfred Marshall Pigou Malthus Robbins None 4. Law of demand explains: Quantitative relationship Qualitative relationship Functional relationship None of the above None 5. Exception to the law of supply is: Agricultural product Scarce goods Labour market All of the above None 6. Micro economics is also known as: Product theory Price theory Process theory Projection theory None 7. Demand can be defined as: Desire to buy Willingness to buy Ability to pay Desire and willingness to buy backed by adequate purchasing power. None 8. In case of normal goods the income effect is: Zero Positive Negative None of the above None 9. The formula E = PX QY = ΔQY ΔPX represents: Cross-elasticity of demand for Y Price-elasticity of demand for X Cross-elasticity of demand for X None of the above None 10. When the utility is increasing at an increasing rate, marginal utility is: Constant Negative Increasing Decreasing None 11. Consumer’s surplus is also known as: Elasticity of demand Differential surplus Buyer’s surplus Indifference surplus None 12. The law 'supply creates its own demand' was put forth by: Marshall Pigou Robbins J. B. Say None 13. Effective demand is: Demand exceeds supply Aggregate demand is equal to aggregate supply Elasticity of demand for a product is high Difference between actual and forecast demand None 14. Cross elasticity of demand relates: Price of one commodity and demand for another commodity Substitutes and complementary goods Market and supply Production and cost None 15. Central Problem of all Economies are: What to produce? How to produce? For whom to produce? All of the above None 16. Exceptions to the law of demand are: Conspicuous goods Giffen goods Shares’ speculative market All if the above None 17. The concept of consumer’s surplus was propounded by: Malthus Alfred Marshall Robbins Pigou None 18. Law of Demand Explains: Qualitative relationship Quantitative relationship Functional Relationship None of the above None 19. Utility is: Cardinal Ordinal Neutral Both (a) and (b) None 20. We cannot produce Any thing Every thing Useless things Good things None 21. When marginal utility begins to be negative, the total utility starts to : Become zero Become negative Increase Decrease None 22. In the case of a straight-line demand curve meeting the two axes, the price-elasticity of demand at the mid-point of the line would be: 0 1 1.5 2 None 23. In the case of inferior goods, the income elasticity of demand is: Positive Zero Negative Infinite None 24. Elasticity of supply refers to the degree of responsiveness of supply of a goods to change in its: Demand Price Cost of production State of technology None 25. The law of demand enumerates that Increase in quantity demanded results in increase in price Increase in price results in decrease in quantity demanded Decrease in demand results in decrease in price Both (b) and (c) None 26. In case of substitutes the cross elasticity of demand will be: Positive zero Negative infinite None 27. In a Mixed Economy which sector is found? Private only Public sector only None Both (a) & (b) None 28. The law of diminishing marginal utility states that: It will take larger & larger amounts of resources beyond some point to produce successive units of a product Total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed Price must be lowered in order to induce firms to supply more of a product. Eventually additional units of a given product will yield less and less extra satisfaction to a consumer. None 29. Equilibrium State is achieved at: The Peak point of Supply curve (b) The Bottom point of Demand curve The Inflection point of Demand curve The Intersection of demand & Supply curve None 30. Substitution and Income effects of a change in the price of a good may be used to explain the: Direct relationship between price and quantity purchased Inverse relationship between price and quantity purchased Direct relationship between income & demand Direct relationship between price and quantity supplied None 31. A supply curve parallel to X axis means the product supply is: Limited Unlimited Not available None None 32. Any point beyond PPF is: Attainable Unattainable Attainable with increase in production facilities None. None 33. A typical demand curve will normally have a: Positive slope Horizontal slope Vertical slope Negative slope None 34. An imposition of excise duty would effect the demand of a product due to ________. Income effect Substitution effect Both None None 35. Tea and Coffee are: Complementary goods Alternative goods Unrelated goods None of these None 36. Complementary goods are those which are ________. Consumed Simultaneously Close Competitive Both Unrelated None 37. Goods which are perfect substitute of each other will have elasticity of substitution ________. Unity. Less than 1 More than 1 Infinite None 38. Who defined economics as “Science which deals with wealth”? J. B. Say A.C Pigou Alfred Marshall Robbins None 39. Economics cannot be given the status of science because: Of non-uniformity of opinion and approach of economist Economic behaviour of human being is unpredictable Measuring rod of money is unstable All the three. None 40. The central problem of how to produce is resolved by Demand and supply of factor inputs Demand and supply of goods Relative prices and availability of factors of production Government intervention. 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!
