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. Demand for a product will be more elastic if The product has fewer substitutes The product has more substitutes The product has more substitutes It is a luxury None 2. When the price of a product increases, its quantity supplied: Decreases Increases Remains constant Becomes zero None 3. Which of the following is NOT a determinant of demand? Price of the commodity Income of the consumer Cost of production Prices of related goods None 4. The elasticity of supply of a fixed resource, such as land, is: Zero Infinite Greater than one Less than one None 5. Consumer surplus is the difference between: Total utility and marginal utility Price paid and price consumers are willing to pay Total revenue and total cost Total demand and total supply None 6. Which is NOT a characteristic of perfect competition? Large number of buyers and sellers Free entry and exit of firms Price discrimination None 7. In monopolistic competition, firms compete on: Price only Product differentiation Product differentiation Advertising expenditure only None 8. Collusive oligopoly is characterized by: Firms competing fiercely Firms entering into agreements to fix prices Perfect competition among firms Complete government regulation None 9. A monopolist’s marginal revenue is: Equal to price Less than price More than price Equal to total revenue None 10. Under perfect competition, the supply curve of a firm is the: Marginal cost curve above average total cost Marginal cost curve above average variable cost Total cost curve Fixed cost curve None 11. The Law of Variable Proportions is also known as: Law of Increasing Returns Law of Diminishing Marginal Returns Law of Constant Returns Law of Equi-Marginal Returns None 12. Which of the following costs remains constant regardless of output? Total cost Average cost Fixed cost Marginal cost None 13. When total cost is divided by total output, we get: Average cost Marginal cost Fixed cost Variable cost None 14. The relationship between inputs and outputs is expressed through the: Production function Cost curve Demand function Revenue function None 15. Which of the following is NOT a type of cost? Explicit cost Opportunity cost Imputed cost Trade surplus None 16. Net National Product (NNP) is calculated as: GNP - Depreciation GDP + Depreciation GNP + Indirect Taxes GDP - Indirect Taxes None 17. Real GDP is: GDP adjusted for inflation GDP at current prices GDP including transfer payments . GDP minus indirect taxes None 18. Which of the following is NOT a component of Gross Domestic Product (GDP)? Private consumption Transfer payments Net exports Investment None 19. Disposable income is defined as: Total income before taxes Income available after paying taxes Total national income Income earned from abroad None 20. Which of the following measures the economic welfare of a country? National income Human Development Index (HDI) Balance of payments Budget deficit None 21. The New Economic Policy of 1991 emphasized: Self-reliance Import substitution Liberalization, privatization, and globalization Protectionism None 22. The Minimum Support Price (MSP) is declared for: Industrial goods Agricultural products Consumer durables All commodities None 23. The largest contributor to India’s GDP is: Agriculture Industry Services Construction None 24. The term “demographic dividend” refers to: Benefits of an aging population Economic benefits arising from a young and working-age population Increase in population growth Decline in fertility rates None 25. India’s largest export partner is: USA UAE China Germany None 26. Which bank in India is known as the “banker’s bank”? SBI RBI NABARD ICICI Bank None 27. Open market operations refer to: Lending by commercial banks Buying and selling of government securities by the central bank Government trade policies Foreign exchange transactions None 28. Inflation reduces: Purchasing power of money Supply of money Prices of goods Demand for goods None 29. Which of the following instruments is used in monetary policy? Fiscal deficit Repo rate Public debt Subsidies None 30. Commercial banks create money by: Printing currency Advancing loans Issuing government securities Collecting taxes None 31. Which is NOT a macroeconomic objective? Price stability Full employment Profit maximization Economic growth None 32. Trade surplus occurs when: Exports exceed imports Imports exceed exports Exports equal imports There is no trade None 33. Capital intensive industries rely heavily on: Human labor Machinery and technology Raw materials Natural resources None 34. Which organization calculates India’s Consumer Price Index (CPI)? Reserve Bank of India Central Statistical Office Ministry of Finance SEBI None 35. Human capital refers to: Investment in machinery Education, skills, and health of people Physical capital in industries Capital earned from trade None 36. If the income elasticity of demand for a product is positive, the product is: A normal good An inferior good A Giffen good A substitute good None 37. A decrease in the price of a complementary good will: Increase demand for the related good Decrease demand for the related good Have no effect on demand Reduce the supply of the related good None 38. The Law of Demand states that, ceteris paribus: Price and quantity demanded are inversely related Price and quantity demanded are directly related Income and quantity demanded are inversely related Price and income are directly related None 39. Consumer equilibrium is achieved when: Marginal utility of all goods is equal Total utility is maximized Marginal utility per rupee spent on each good is equal Expenditure is minimized None 40. Engel’s law relates to: Income elasticity of demand for inferior goods Expenditure on food items as income increases Substitution between goods Marginal utility of money 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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