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. The short-run production function is characterized by: At least one fixed input All inputs variable Diminishing marginal utility Increasing returns to scale None 2. Variable costs vary with: Time Level of output Fixed costs Number of workers None 3. The marginal product curve intersects the average product curve at: Its maximum Its minimum The origin The point of inflection None 4. Economies of scale result in: Increasing average costs Decreasing average costs Constant marginal costs Decreasing total costs None 5. Diseconomies of scale occur when: Marginal costs decrease Average costs increase with output Average costs remain constant Total costs decrease with output None 6. In the short run, a perfectly competitive firm will shut down if: Price is below average total cost Price is below average variable cost Marginal cost is above average cost Marginal revenue equals marginal cost None 7. In monopolistic competition, firms in the long run make: Normal profits Supernormal profits Losses Zero marginal revenue None 8. Under oligopoly, the kinked demand curve assumes: Price increases are matched but not price cuts Price decreases are matched but not price increases Prices are rigid Demand is perfectly elastic None 9. The price-output equilibrium under perfect competition occurs at: MC = AR . MC = MR AR = AC MR = AC None 10. Price rigidity is a feature of: Perfect competition Monopolistic competition Monopoly Oligopoly None 11. Which method is NOT used to measure national income? Expenditure method Income method Output method Interest method None 12. The sum of value-added at all stages of production in an economy equals: GNP NNP GDP NDP None 13. Transfer payments are included in: Personal income National income Net domestic product Gross domestic product None 14. The unemployment rate is calculated as: (Unemployed / Labor force) × 100 (Labor force / Population) × 100 (Population / Labor force) × 100 (Employed / Labor force) × 100 None 15. Inflation reduces the value of: Real income Nominal income Money supply Investments None 16. The Five-Year Plan model in India was inspired by: USA USSR Japan China None 17. The Planning Commission was replaced by: NITI Aayog Economic Advisory Council Finance Commission d RBI None 18. The largest employment provider in India is: Agriculture Industry Services Construction None 19. Goods and Services Tax (GST) is an example of: Direct tax Indirect tax Corporate tax Wealth tax None 20. Make in India initiative focuses on: Import substitution Manufacturing sector growth Agricultural reforms Skill development None 21. The primary objective of monetary policy is to control: Employment Inflation Population growth Government spending None 22. Repo rate is the rate at which: Commercial banks lend to RBI RBI lends to commercial banks Banks lend to customers Customers deposit money in banks None 23. Which of the following is NOT a qualitative instrument of monetary policy? Credit rationing Open market operations Margin requirements Moral suasion None 24. Currency devaluation leads to: Increase in exports . Decrease in exports No impact on trade Decrease in foreign investment None 25. Fiat money is: a. Backed by gold reserves Issued by private institutions Based on trust in the issuing authority Commodity money None 26. The HDI measures development using: GDP per capita, literacy, and life expectancy Trade balance, education, and income Savings rate, health, and employment Economic growth and population None 27. Fiscal policy primarily deals with: Interest rates Government spending and taxation Money supply Trade regulations None 28. A fixed exchange rate system is one where: Exchange rates fluctuate freely Exchange rates are determined by the government Exchange rates are determined by market forces There is no trade deficit None 29. Terms of trade refers to: The ratio of export prices to import prices Trade volume between two countries Government trade policies Balance of payments None 30. Which of the following is NOT a renewable resource? Solar energy Wind energy Coal Hydropower None 31. The substitution effect of a price change implies that: Consumers substitute cheaper goods for costlier ones Consumers buy more of a good when its price rises Consumers reduce the total expenditure on all goods Consumers substitute income for goods None 32. A product with perfectly inelastic demand will have an elasticity value of: Zero Infinity One Greater than one None 33. Under monopoly, the gap between average revenue and marginal revenue is: Constant Increasing with output Decreasing with output Equal to marginal cost None 34. Price discrimination is possible only when: There are multiple sellers Buyers have identical elasticity of demand The seller has market power Costs of production are zero None 35. When average cost decreases as output increases, it is known as: Economies of scale Diseconomies of scale Constant returns to scale Marginal cost reduction None 36. In the short run, increasing returns to a factor occurs because: Fixed inputs are used more efficiently Variable inputs decrease Marginal cost increases Total fixed cost increases None 37. The Pradhan Mantri Jan Dhan Yojana aims to: Improve agricultural productivity Provide universal access to banking facilities Increase manufacturing sector output Promote higher education None 38. The balance of payments includes: Only visible trade Only imports and exports Current account and capital account transactions Only trade deficits None 39. Which of the following is a liability for a commercial bank? Loans and advances Investments Deposits of customers Cash reserves None 40. Inflation caused by an increase in aggregate demand is called: Cost-push inflation Demand-pull inflation Stagflation Hyperinflation 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!
