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. A market in which there are a few large firms is called: Perfect competition Monopoly Oligopoly Monopolistic competition None 2. The relationship between price and quantity demanded is shown by: Demand curve Supply curve Production possibility curve Indifference curve None 3. A perfectly inelastic demand curve is: Vertical Horizontal Downward sloping Upward sloping None 4. 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 5. Cross elasticity of demand measures the relationship between: Income and demand Price of one good and demand for another good Price and quantity supplied Price and quantity demanded None 6. Which factor is NOT considered in the law of supply? Price of the good Cost of production Technology used Tastes and preferences None 7. In the long run, a firm in perfect competition earns: Supernormal profit Normal profit Subnormal profit No profit None 8. The concept of consumer surplus is based on: Law of supply Law of demand Utility theory Cost theory None 9. Economic cost includes: Only explicit costs Only implicit costs Both explicit and implicit costs Neither explicit nor implicit costs None 10. Which of the following is NOT a characteristic of a mixed economy? Coexistence of public and private sectors Complete absence of competition Price mechanism plays a role Government intervention None 11. An indifference curve shows: The level of satisfaction of a consumer Combinations of two goods that provide equal satisfaction How demand varies with income The relationship between price and quantity None 12. Which is the best example of a public good? Education Healthcare National defense Food grains None 13. A demand curve that shifts to the right indicates: A decrease in demand An increase in demand A decrease in supply An increase in supply None 14. Which of the following is an example of fixed cost? Raw materials Direct labor Depreciation Electricity charges None 15. When marginal product is zero, total product is: Increasing Decreasing Maximum Minimum None 16. The equilibrium price in a market is determined by: Supply only Demand only Both demand and supply Cost of production None 17. Inflation is measured by: Consumer Price Index (CPI) Gross Domestic Product (GDP) Balance of Payments (BOP) Exchange Rate None 18. The term "price discrimination" is associated with: Perfect competition Monopoly Monopolistic competition Oligopoly None 19. Which sector contributes the largest to India’s GDP? Agriculture Industry Services Manufacturing None 20. Fiscal deficit refers to: Excess of government expenditure over revenue Total income of the government Excess of exports over imports Balance between revenue and expenditure None 21. Who is regarded as the father of scientific management? Elton Mayo Henry Fayol F.W. Taylor Peter Drucker None 22. The decision-making process involves: Identifying the problem Generating alternatives Evaluating alternatives All of the above None 23. The main objective of coordination in management is: To control employees To reduce costs To achieve organizational To increase competition None 24. Management by Objectives (MBO) focuses on: Controlling activities Setting and achieving specific objectives Centralized decision-making Motivating employees None 25. Which of the following is NOT a function of management? Planning Controlling Marketing Directing None 26. The primary purpose of staffing is: Budgeting resources Placing the right person in the right job Developing infrastructure Establishing control None 27. Span of control refers to: The level of authority of a manager The number of subordinates reporting to a manager The duration of a manager's tenure The geographical reach of a manager's influence None 28. Leadership is primarily concerned with: Decision-making Influencing behavior toward goals Coordinating teams Supervising employees None 29. A major benefit of decentralization is: Concentration of power Faster decision-making Increased workload on top management Reduced employee involvement None 30. The final step in the control process is: Measuring performance Setting standards Taking corrective action Comparing performance None 31. Which of the following is NOT a determinant of demand? Price of the good Income of consumers Technology used in production Prices of related goods None 32. The shape of a perfectly elastic demand curve is: Horizontal Vertical Downward sloping Upward sloping None 33. The concept of price ceiling is used to: Protect producers Control inflation Promote exports Protect consumers None 34. If the income elasticity of demand is positive, the good is classified as: Inferior Normal Giffen Veblen None 35. When Average Revenue = Average Cost, the firm is said to: Earn normal profit Earn supernormal profit Incur loss Break even None 36. When demand and supply both increase, equilibrium price will: Increase Decrease Remain constant Be indeterminate None 37. The short-run production function assumes: All inputs are variable All inputs are fixed At least one input is fixed At least one input is free None 38. Which market structure is characterized by interdependence among firms? Monopoly Perfect competition Oligopoly Monopolistic competition None 39. A normal good has: Negative price elasticity Positive price elasticity Positive income elasticity Negative income elasticity None 40. The relationship between total cost, fixed cost, and variable cost is: Total cost = Fixed cost − Variable cost Total cost = Fixed cost × Variable cost Total cost = Fixed cost + Variable cost Total cost = Fixed cost ÷ Variable cost None 1 out of 4 Great job on taking the INCOC Test! 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