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. In a monopoly, the price is determined by: Government regulation Market forces of supply and demand The monopolist’s marginal cost and marginal revenue The consumer’s willingness to pay None 2. Which of the following is true for a perfectly competitive market? Firms can set their prices Firms are price takers Entry barriers are high Products are differentiated None 3. Price discrimination is most likely to occur under which market structure? Monopoly Perfect competition Oligopoly Monopolistic competition None 4. In the short run, a firm in perfect competition will continue to produce as long as: Total revenue is equal to total cost Marginal cost equals marginal revenue Total revenue covers total variable cost Total cost is greater than total revenu None 5. Which of the following is not a measure of income inequality? Lorenz curve Gini coefficient Poverty line Total income None 6. A progressive tax system means that: Tax rate decreases as income increases Tax rate increases as income increases Tax rate is constant regardless of income All individuals pay the same percentage of their income in tax None 7. The concept of “human capital” refers to: Physical assets Skills and knowledge of individuals Natural resources Money invested in industries None 8. Wealth inequality is generally higher in countries with: Progressive tax systems Higher rates of unemployment More equal distribution of income Greater reliance on market-based economies None 9. Comparative advantage theory suggests that countries should specialize in producing goods in which they: Have the highest demand Are most efficient at producing Have the highest cost of production Have the lowest level of tariffs None 10. The balance of payments is a record of: All economic transactions between a country and the rest of the world A country's GDP over a specific period A country's foreign exchange reserves All government taxes and subsidies None 11. A country’s exchange rate is the price of its currency in terms of: Goods and services Gold reserves Foreign currencies Domestic products None 12. Which of the following is not a reason for government intervention in international trade? Protecting infant industries Reducing trade deficits Encouraging free trade Protecting jobs in key industries None 13. Which of the following is the primary goal of financial management in business economics? Maximizing profits Maximizing market share Maximizing shareholder wealth Minimizing risk None 14. The time value of money concept is based on the idea that: Money’s purchasing power decreases over time Money has the same value today and in the future Money can only be spent once Money is more valuable in the future than in the present None 15. The risk associated with an investment in a business is called: Systematic risk Diversifiable risk Market risk Non-systematic risk None 16. A company’s cost of capital refers to: The price it pays to acquire financial resources The interest on its loans The depreciation of its asset The cost of raw materials None 17. Economic development refers to: The increase in a country’s GDP The improvement in living standards and quality of life The reduction in inflation The improvement in infrastructure None 18. Which of the following is a characteristic of a developing economy? High industrialization High per capita income High literacy rate Large agricultural sector None 19. The human development index (HDI) includes all of the following except: Life expectancy Educational attainment Per capita income Inflation rate None 20. Sustainable economic growth refers to growth that: Maximizes current consumption at the expense of future resources Increases industrial output without considering environmental impacts Is achieved without compromising the ability of future generations to meet their needs Focuses on maximizing profits without considering social welfare None 21. The primary function of money is: Storing value Acting as a medium of exchange Acting as a unit of account All of the above None 22. Which of the following is not a function of commercial banks? Accepting deposits Issuing currency Providing loans Facilitating payments None 23. The reserve requirement refers to: The percentage of total deposits that banks must keep in reserves The total amount of money a bank has available for loans The maximum amount of interest a bank can charge The amount of reserves held by the central bank None 24. The primary objective of a central bank is to: Maximize profits for the commercial banking sector Regulate foreign exchange rates Control inflation and stabilize the currency Provide loans to government departments None 25. Which of the following is not a cause of inflation? Increased demand for goods and services Increased production costs Decreased consumer confidence Increased money supply None 26. The Consumer Price Index (CPI) measures: The overall level of prices in the economy The price changes for industrial goods The cost of imports The change in the price of labor None 27. Which of the following best describes 'unemployment'? A person who is working part-time but desires full-time work A person who is actively seeking work but is unable to find employment A person who is retired and not seeking employment A person who has left the workforce and is not looking for a job None 28. The natural rate of unemployment includes: Only frictional unemployment Only cyclical unemployment Frictional and structural unemployment Seasonal and cyclical unemployment None 29. The government's fiscal policy primarily involves: Setting interest rates Regulating currency exchange Managing taxation and government spending Controlling money supply None 30. A budget deficit occurs when: Government expenditure is equal to its revenue Government expenditure exceeds its revenue Government revenue exceeds its expenditure Government debt is reduced None 31. Which of the following is a tool of expansionary fiscal policy? Decrease in government spending Increase in taxes Increase in government spending Reduction in subsidies None 32. Which of the following is an example of a transfer payment? Government spending on defense Salaries paid to government employees Social security benefits Interest on government debt None 33. Globalization refers to: The process of economic integration and interdependence among countries The development of local economies The process of closing off national borders Nationalization of industries None 34. Which of the following is a direct effect of globalization on businesses? Reduction in competition Decreased access to foreign markets Access to larger markets and better technology Decreased labor mobility None 35. Economic reforms in India since 1991 have focused on: Nationalization of industrie Liberalization, privatization, and globalization Restricting foreign trade A fixed exchange rate system None 36. Which of the following is an example of an externality? A firm's profits A person receiving a wage for labor Pollution from a factory Government spending on education None 37. The key goal of economic development is to: Achieve higher levels of GDP Enhance human welfare and reduce poverty Increase industrial output Maintain a balance between imports and exports None 38. Which of the following is considered a barrier to economic development? High levels of foreign direct investment High levels of income inequality Investment in education and healthcare Well-developed infrastructure None 39. Human capital refers to: The physical infrastructure of a country The monetary resources available for development The skills, education, and health of the labor force The level of natural resources in a country None 40. The concept of sustainable development means: Achieving economic growth without consideration of environmental impacts Focusing on development that meets the needs of the present without compromising future generations Prioritizing economic growth over social well-being Ensuring that all countries have equal levels of development 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!
