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 an example of a normative statement? India’s GDP grew by 7% last year. Inflation is harmful to the economy The price of crude oil is $80 per barrel. The demand for electric vehicles is increasing None 2. A mixed economy combines features of: Capitalism and socialism Capitalism and communism Market and barter systems Command and traditional systems None 3. Which branch of economics deals with aggregates like GDP and unemployment? Microeconomics Macroeconomics Managerial economics Development economics None 4. Who is considered the founder of modern economics? John Maynard Keynes Karl Marx Adam Smith Alfred Marshall None 5. An increase in the price of a good will lead to: An increase in demand A decrease in demand A movement up along the demand curve A movement down along the demand curve None 6. The income elasticity of demand for a necessity is: Greater than 1 Less than 1 Equal to 1 Zero None 7. Giffen goods are a violation of: The law of supply The law of demand Elasticity of demand Consumer preferences None 8. The cross elasticity of demand between complementary goods is: Positive Negative Zero Infinite None 9. If the price elasticity of demand is 0.5, the demand is: Perfectly elastic Inelastic Unit elastic Elastic None 10. A vertical demand curve represents: Perfectly elastic demand Unitary elastic demand Perfectly inelastic demand Highly elastic demand None 11. The supply curve shifts to the left when: Production costs decrease Production technology improves There is a natural disaster New firms enter the market None 12. The price elasticity of supply measures: Consumer sensitivity to price changes Producer sensitivity to price changes Profitability of firms Tax effects on markets None 13. Which cost curve is U-shaped? Total cost curve Marginal cost curve Fixed cost curve Average fixed cost curve None 14. In the long run, economies of scale occur when: Output increases and cost per unit rises Output increases and cost per unit falls Output decreases and cost per unit rises Output increases and cost per unit remains constant None 15. Which of the following is not a type of internal economy of scale? Technical economies Marketing economies Government subsidies Financial economies None 16. The total fixed cost curve is: Upward sloping Downward sloping Horizontal Vertical None 17. Price discrimination is possible only under: Perfect competition Monopoly Monopolistic competition Oligopoly None 18. In perfect competition, firms are: Price takers Price makers Price discriminators Price regulators None 19. Collusion is commonly observed in: Perfect competition Monopoly Monopolistic competition Oligopoly None 20. Which of the following market structures leads to the most efficient allocation of resources? Monopoly Perfect competition Oligopoly Monopolistic competition None 21. Which of the following is an indicator of an economic boom? Rising unemployment Declining GDP Increasing inflation Falling consumer confidence None 22. The time period between two successive peaks in a business cycle is called the: Depression phase Expansion phase Recession phase Cycle duration None 23. Stagflation refers to: High inflation and high growth Low inflation and low growth High inflation and high unemployment Low inflation and high unemployment None 24. Which of the following policies is used to combat a recession? Contractionary monetary policy Expansionary fiscal policy Reduction in government spending Increase in interest rates None 25. The value of net exports in GDP calculation is: Imports - Exports Exports - Imports Exports + Imports Exports ÷ Imports None 26. Which of the following is not a method of measuring national income? Income method Expenditure method Production method Consumption method None 27. GDP at factor cost is equal to GDP at market price minus: Subsidies Taxes on products Indirect taxes Subsidies plus taxes None 28. Disposable income is: National income minus depreciation Personal income minus direct taxes Gross income plus transfers Net income minus government spending None 29. If the marginal utility of a good is zero, then: Total utility is at a maximum Total utility is at a minimum Total utility is declining Total utility is increasing None 30. Opportunity cost is best described as: The actual money spent on an alternative The value of the next best alternative foregone The total cost of production The price of capital used None 31. Which of the following factors affects price elasticity of demand? Availability of substitutes Production cost Government regulations Income tax rates None 32. The kinked demand curve is used to explain: Monopoly pricing Oligopoly price rigidity Perfect competition Monopolistic competition None 33. In which market structure is there a single seller and many buyers? Oligopoly Monopoly Perfect competition Monopolistic competition None 34. The total cost in the short run is the sum of: Marginal cost and variable cost Fixed cost and variable cost Marginal cost and total fixed cost Total cost and average cost None 35. The break-even point is where: Total revenue equals total cost Total revenue exceeds total cost Marginal cost equals average variable cost Fixed cost equals variable cost None 36. When average cost is falling, marginal cost is: Equal to average cost Less than average cost Greater than average cost Cannot be determined None 37. In the long run, all costs are considered to be: Fixed Variable Mixed Sunk None 38. Market failure occurs when: The market allocates resources efficiently The market does not provide goods and services at socially optimal levels Prices are highly volatile Government intervention is not required None 39. Which of the following is an example of a public good? A sandwich A private park National defense A movie ticket None 40. Government intervention in markets is justified if there are: High profits Externalities Perfect competition Low taxes 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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