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 perfectly competitive market? Barriers to entry Homogeneous products Price discrimination Monopoly power None 2. Which of the following best defines "microeconomics"? The study of the economy as a whole The study of individual markets and industries The study of international trade The study of government policies None 3. The principle of diminishing marginal utility suggests that: The more you consume of a good, the greater the satisfaction you get The more you consume of a good, the less satisfaction you get The more you consume, the more you have to pay Utility increases at a constant rate None 4. Which of the following is a non-monetary incentive for workers? Profit sharing Job satisfaction Bonus payments Commissions None 5. Which of the following is true of an oligopoly? There are many firms competing in the market The market is dominated by a few large firms Firms have no control over the market price There is no differentiation between products None 6. Which of the following is NOT a determinant of demand? Price of the good Income of consumers Prices of related goods Cost of production None 7. If the price of a good decreases, and the quantity demanded increases, the relationship is: Inverse Direct Negative Neutral None 8. Which of the following is an example of a complementary good? Tea and coffee Mobile phones and phone chargers Shoes and socks Pepsi and Coke None 9. Which economic system is characterized by government ownership of the means of production? Capitalism Socialism Mixed economy Free market economy None 10. Which of the following is NOT a feature of a monopolistic competition? Product differentiation Barriers to entry Large number of firms Firms have some control over price None 11. The marginal cost curve intersects the average cost curve at: The minimum point of the marginal cost curve The minimum point of the average cost curve The maximum point of the average cost curve The equilibrium point of the supply and demand curves None 12. Which of the following is an example of a variable cost? Rent Insurance Raw material Salaries of permanent employees None 13. Which of the following is NOT a characteristic of perfect competition? Free entry and exit Homogeneous products Product differentiation Perfect knowledge of market conditions None 14. A firm's supply curve is derived from which curve? Average cost curve Marginal revenue curve Marginal cost curve Total cost curve None 15. The law of supply states that, other things being equal, when the price of a good rises, the quantity supplied: Increases Decreases Remains constant First increases and then decreases None 16. In which of the following market structures do firms have some control over price? Perfect competition Monopoly Monopolistic competition Both b and c None 17. The production possibility curve (PPC) illustrates the trade-off between: Capital and labo Two goods or services Current and future consumption Economic and social policies None 18. Which of the following is a factor of production? Technology Capital Demand Market competition None 19. Which of the following is an example of a price ceiling? Minimum wage laws Rent control laws Taxation on luxury goods Government subsidies for certain goods None 20. The theory of comparative advantage suggests that: Countries should specialize in the production of goods in which they have an absolute advantage Countries should diversify their economies Countries should specialize in the production of goods in which they have a lower opportunity cost Trade should be limited to goods that cannot be produced domestically None 21. Which of the following is an example of a fixed cost for a business? Wages of temporary workers Raw materials Rent on office space Cost of producing additional units None 22. In the context of a firm, "marginal revenue" refers to: Total revenue divided by the number of units sold The revenue from the sale of one additional unit of output Revenue from all units produced The total amount a firm receives from customers None 23. Which of the following is NOT a part of the business environment? Political factors Technological factors Personal factors of the entrepreneur Legal factors None 24. The concept of elasticity of demand refers to: The relationship between income and demand The degree to which the demand for a good changes in response to a price change The level of demand at different price points The total amount of goods demanded None 25. A firm’s total revenue is calculated by: Total cost minus profit Price multiplied by the quantity sold Marginal cost multiplied by output Adding fixed and variable costs None 26. Which of the following is a characteristic of a mixed economy? Private ownership and public regulation Government controls all economic activities No government intervention in the economy Only private sector firms operate None 27. Which of the following is an example of price discrimination? A company offering discounts to bulk buyers A store charging different prices based on the time of day c) A firm producing identical goods but at different prices for different markets d) All of the above A firm producing identical goods but at different prices for different markets All of the above None 28. In a monopolistic competition, firms produce: Homogeneous products Differentiated products Unique products Standardized products None 29. Which of the following best describes the role of entrepreneurship in the economy? Facilitating production and creating employment opportunities Maximizing government control Providing financial resources for big corporations Reducing market competition None 30. Which of the following is an example of an externality? Pollution caused by a factory The cost of raw materials A worker's salary The price of a good None 31. Which of the following is NOT a major principle of management? Division of work Unity of command Profit maximization Authority and responsibility None 32. The Gantt chart is used for: Budgeting and financial analysis Employee performance evaluation Project scheduling Marketing strategy development None 33. Which of the following is the focus of Maslow’s hierarchy of needs? Economic needs Human motivation Organizational behavior Corporate culture None 34. Which of the following is a common form of business ownership in India? Sole proprietorship Partnership Joint-stock company All of the above None 35. The break-even point is the level of output where: Total Revenue equals Total Cost Revenue exceeds Cost Fixed Cost equals Variable Cost Profit is maximized None 36. Which of the following is a key characteristic of a business? Profit-making motive Non-profit-making operations Government ownership Centralized decision-making None 37. A firm is said to be in "short-run equilibrium" when: Marginal cost equals marginal revenue Total cost equals total revenue Average total cost equals average revenue All of the above None 38. In economics, scarcity refers to: The limited availability of resources High demand for goods Unlimited wants of individuals The concept of income distribution None 39. Which of the following is an example of an oligopoly? Wheat farming Airline industry Mobile app development Local grocery stores None 40. Which of the following is NOT a purpose of business ethics? Promoting fairness in business practices Ensuring sustainability and social responsibility Maximizing personal gain at any cost Ensuring accountability and transparency 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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