Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Business Economics Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. Which of the following is a characteristic of a centrally planned economy? Market forces determine production Private ownership is dominant Government controls production and distribution Prices are determined by supply and demand None 2. The basic economic problem faced by all societies is: Unemployment Inflation Scarcity of resources Technological advancement None 3. Which of the following is an example of a normative economic statement? Inflation is currently at 6% Unemployment rate has increased by 2% The government should reduce taxes to boost economic growth GDP growth rate was 5.2% last year None 4. Which type of economy combines features of both capitalism and socialism? Traditional economy Market economy Mixed economy Command economy None 5. Which branch of economics deals with the behavior of individual consumers and firms? Microeconomics Macroeconomics Econometrics Public finance None 6. When demand for a good increases due to an increase in consumer income, the good is called: Inferior good Normal good Giffen good Public good None 7. A movement along the demand curve is caused by: A change in the price of the good itself A change in consumer income A change in tastes and preferences A change in government policy None 8. A product whose demand increases when the price of another product decreases is called a: Substitute good Complementary good Inferior good Giffen good None 9. Which of the following factors affects supply? Cost of production Consumer income Changes in tastes and preferences Population growth None 10. When the percentage change in quantity demanded is greater than the percentage change in price, demand is: Inelastic Elastic Unitary elastic Perfectly inelastic None 11. The law of diminishing returns applies in: The short run The long run Both short and long run Only in a monopoly None 12. Which cost remains constant regardless of the level of production? Fixed cost Variable cost Marginal cost Total cost None 13. When total revenue equals total cost, a firm is experiencing: Profit Loss Break-even point Shutdown point None 14. In the short run, which factor of production is typically fixed? Labor Capital Raw materials Advertising None 15. Which type of revenue decreases as output increases in imperfect competition? Total revenue Marginal revenue Average revenue Fixed revenue None 16. A market structure in which a few large firms dominate is called: Perfect competition Monopoly Oligopoly Monopolistic competition None 17. In perfect competition, firms are: Price makers Price takers Market controllers Government regulated None 18. Which pricing strategy involves selling a product at a lower price to eliminate competition? Price skimming Penetration pricing Predatory pricing Cost-plus pricing None 19. Which type of monopoly is granted by the government? Natural monopoly Legal monopoly Technological monopoly Pure monopoly None 20. The key feature of monopolistic competition is: Homogeneous products Many sellers with differentiated products Single seller High barriers to entry None 21. Which method is NOT used to measure national income? Output method Expenditure method Capital method Income method None 22. Which of the following is included in Gross Domestic Product (GDP)? Illegal activities Transfer payments Value of final goods and services Unpaid household work None 23. A country’s standard of living is best measured by: Gross Domestic Product (GDP) Gross National Product (GNP) Per capita income National income None 24. Which sector contributes the least to India's GDP? Agriculture Industry Services Construction None 25. The Human Development Index (HDI) includes all of the following EXCEPT: Life expectancy Education level Per capita income Trade balance None 26. Inflation that is out of control and extremely high is called: Cost-push inflation Demand-pull inflation Hyperinflation Stagflation None 27. Which of the following is NOT a cause of unemployment? Technological advancements Economic recession High government spending Structural changes in the economy None 28. Which financial institution regulates monetary policy in India? Ministry of Finance Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) State Bank of India (SBI) None 29. Which monetary policy tool involves buying and selling government securities? Bank rate Open market operations Cash reserve ratio Statutory liquidity ratio None 30. Which rate is charged by the central bank to commercial banks for borrowing money? Repo rate Reverse repo rate Exchange rate Market rate None 31. Which of the following is NOT a fiscal policy instrument? Government spending Taxation Money supply control Public borrowing None 32. The main objective of monetary policy is to: Increase taxation Control inflation and stabilize the economy Reduce government spending Promote foreign trade None 33. Which of the following is NOT an objective of public finance? Revenue generation Public expenditure management Increasing private sector profits Economic stability None 34. 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 35. Which organization releases the annual Economic Survey in India? Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) Ministry of Finance NITI Aayog None 36. Which international organization deals with global trade rules? International Monetary Fund (IMF) World Bank World Trade Organization (WTO) United Nations (UN) None 37. A country has a trade surplus when: Exports are equal to imports Exports exceed imports There is no international trade Imports exceed exports None 38. Which of the following is a benefit of globalization? Reduced competition Limited foreign investment Increased access to foreign markets Trade restrictions None 39. Which currency is most widely used in international trade? Euro US Dollar British Pound Japanese Yen None 40. Which economic concept explains the ability of a country to produce goods at a lower opportunity cost than another country? Absolute advantage Comparative advantage Economies of scaale Marginal utility None 1 out of 4 Great job on taking the INCOC Test! 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