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. Which of the following is the primary focus of Business Economics? Accounting Practices Managerial Decision Making Production Technology Tax Regulations None 2. What is the fundamental economic problem? Unlimited Resources Limited Needs Scarcity of Resources None of the above None 3. Microeconomics focuses on which of the following? National Income Industry Growth Individual Units Inflation None 4. Business Economics is also known as: Macroeconomics Applied Economics Pure Economics Corporate Finance None 5. The law of demand states that: Price and demand are directly proportional. Price and demand are inversely proportional Demand and supply are unrelated. None of the above. None 6. Which of the following is a determinant of demand? Cost of production Consumer income Government policies Number of producers None 7. What happens to demand when the price of a substitute good decreases? Increases Remains constant Decreases Becomes zero None 8. Elasticity of demand measures: Supply chain efficiency Price flexibility Responsiveness of quantity demanded to price changes Consumer preferences None 9. Which of the following represents the short-run production function? All inputs are variable. At least one input is fixed All inputs are fixed None of the above None 10. The law of diminishing marginal returns states that: Total output decreases with each additional input. Marginal output decreases after a point with additional input. Fixed costs decrease over time None of the above. None 11. Which of the following is not a type of cost? Fixed cost Variable cost Sunk cost Time cost None 12. In the long run, all costs are: Fixed Variable Sunk Margina None 13. Which of the following is a characteristic of perfect competition? Price discrimination Homogeneous products High entry barriers Few sellers None 14. Monopolistic competition is characterized by: Homogeneous products No competition Product differentiation Single seller None 15. Oligopoly markets are dominated by Many sellers One seller Few large sellers Government policies None 16. Price rigidity is a common feature of which market structure? Perfect competition Monopoly Oligopoly Monopolistic competition None 17. Business cycles refer to fluctuations in: Production levels National income Employment levels All of the above None 18. The phase of a business cycle where economic activity is at its peak is called: Trough Recovery Boom Depression None 19. Which phase of the business cycle is characterized by declining economic activity? Recovery Expansion Recession Peak None 20. Counter-cyclical policies are designed to: Stabilize the economy Enhance fluctuations Promote monopolies Encourage unemployment None 21. National income is the total value of: Consumer expenditure Goods and services produced in a country Government spending Investments only None 22. Which of the following is excluded from GDP calculations? Consumer goods Underground economy Government services Capital goods None 23. The expenditure method calculates GDP by summing: Income from all sectors Expenditures on goods and services Savings and investments None of the above None 24. Net National Product (NNP) is obtained by: Adding depreciation to GDP Subtracting depreciation from GNP Adding taxes to GDP Subtracting taxes from GNP None 25. Opportunity cost refers to: The cost of production The next best alternative foregone The cost of fixed assets None of the above None 26. A positive cross elasticity of demand indicates that goods are: Substitutes Complements Unrelated Inferior None 27. An indifference curve represents: Levels of income Combination of goods providing equal satisfaction Price levels None of the above None 28. Dumping refers to: Domestic price controls Selling goods at a lower price in foreign markets Increased import tariffs Government subsidies None 29. Which economic system relies entirely on market forces? Command economy Mixed economy Capitalist economy Socialist economy None 30. The profit-maximizing output level occurs where: Marginal cost equals average cost Marginal cost equals marginal revenue Total revenue equals total cost Average cost equals average revenue None 31. Market equilibrium occurs when: Supply exceeds demand Demand exceeds supply Quantity demanded equals quantity supplied Prices are controlled by the government None 32. In a free market, an increase in demand typically leads to: A decrease in supply An increase in price A decrease in price No change in price None 33. A price ceiling is: A maximum legal price set by the government A minimum legal price set by the government The market-determined price The equilibrium price None 34. Which of the following is a result of a price floor set above the equilibrium price? Shortage Surplus Stable market None of the above None 35. If the government imposes a tax on a good, the supply curve will: Shift to the right Shift to the left Remain unchanged Become perfectly elastic None 36. Which of the following is an example of a fixed factor of production in the short run? Labor Machinery Raw materials Energy consumption None 37. The reward for the factor of production 'capital' is: Wages Rent Profit Interest None 38. Which of the following is not a characteristic of labor as a factor of production? Mobility Perishability Divisibility Infinite supply None 39. Average cost is calculated as: Total cost × Quantity Total cost ÷ Quantity Total variable cost ÷ Quantity Fixed cost ÷ Quantity None 40. In a competitive market, the price is equal to: Marginal revenue b)t c) d) Total cos Average fixed cost Total revenue None 1 out of 4 Great job on taking the INCOC Test! 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