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 NOT a central problem of an economy? What to produce How to produce Who will produce When to produce None 2. Which branch of economics deals with individual economic units? Macroeconomics Microeconomics Monetary economics Development economics None 3. A production possibility curve (PPC) shows: Unlimited resources Maximum possible output combinations The total market demand The level of economic inequality None 4. In a mixed economy, economic decisions are taken by: Only the government Only private individuals Both government and private individuals Foreign investors None 5. Which of the following is NOT a factor of production? Land Labor Capital Consumption None 6. An increase in the price of a substitute good will: Increase demand for the given good Decrease demand for the given good Have no effect on demand Increase supply of the given good None 7. Which of the following does NOT cause a shift in the demand curve? Inelastic Elastic Unit elastic Perfectly inelastic None 8. The demand curve generally slopes: Upward Downward Horizontal Vertical None 9. Which of the following leads to excess demand in a market? Price ceiling Price floor Equilibrium pricing Free-market operations None 10. Which of the following is a variable cost? Rent Depreciation Wages of casual labor Interest on loans None 11. Which law states that as more units of a variable factor are added to a fixed factor, marginal productivity eventually decreases? Law of Supply Law of Diminishing Returns Law of Increasing Costs Law of Demand None 12. Which cost remains unchanged regardless of output level? Fixed cost Variable cost Marginal cost Total cost None 13. Total Revenue is calculated as: Price × Quantity Fixed Cost + Variable Cost Average Cost × Quantity Profit + Total Cost None 14. Which cost is relevant for decision-making? Sunk cost Fixed cost Marginal cost Historical cost None 15. In perfect competition, firms are: Price takers Price makers Monopoly power holders Collusive in nature None 16. Which market structure has a few dominant firms? Perfect competition Monopoly Oligopoly Monopolistic competition None 17. The kinked demand curve is associated with which market structure? Monopoly Oligopoly Perfect competition Monopolistic competition None 18. Under which type of competition do firms sell differentiated products? Monopoly Perfect competition Monopolistic competition Oligopoly None 19. Cartels are commonly found in which market structure? Perfect competition Monopoly Oligopoly Monopolistic competition None 20. India follows which type of economic system? Capitalist economy Socialist economy Mixed economy Communist economy None 21. Which institution formulates monetary policy in India? NITI Aayog Reserve Bank of India (RBI) Ministry of Finance Securities and Exchange Board of India (SEBI) None 22. Which of the following is an objective of economic planning? Reduction in production Economic stability and growth Increasing income inequality Restricting foreign trade None 23. Which five-year plan introduced LPG (Liberalization, Privatization, and Globalization) reforms? Sixth Eighth Ninth Eleventh None 24. Which government program aims at promoting rural employment? Digital India MGNREGA Startup India Ayushman Bharat None 25. Which of the following is NOT a cause of inflation? Demand-pull factors Cost-push factors Decrease in money supply Supply chain disruptions None 26. Which banking function involves creating money? Accepting deposits Providing loans Issuing currency notes Selling government securities None 27. Which international institution aims to reduce global poverty? World Trade Organization (WTO) International Monetary Fund (IMF) World Bank United Nations (UN) None 28. Which factor determines a country’s exchange rate in a floating system? Government intervention Market demand and supply Fixed government rates Political decisions None 29. Which policy tool is used to control inflation? Lowering interest rates Increasing government expenditure Increasing Cash Reserve Ratio (CRR) Reducing taxes None 30. Which of the following is NOT a phase of the business cycle? Boom Recession Expansion Depression None 31. The fiscal policy of a country is formulated by: Reserve Bank of India (RBI) Ministry of Finance NITI Aayog Securities and Exchange Board of India (SEBI) None 32. Monetary policy primarily controls: Tax rates Government spending Money supply and interest rates Export tariffs None 33. Which economic indicator is used to measure inflation? Gross Domestic Product (GDP) Consumer Price Index (CPI) Fiscal Deficit Balance of Payments (BoP) None 34. Which of the following is NOT a tool of monetary policy? Repo rate Cash Reserve Ratio (CRR) Taxation policy Open Market Operations None 35. The difference between a country’s exports and imports is known as: Balance of Payments Balance of Trade Fiscal Deficit Budget Deficit None 36. Which international organization regulates global trade? World Trade Organization (WTO) International Monetary Fund (IMF) United Nations (UN) World Bank None 37. Which of the following is an example of a trade barrier? Free trade agreement Import duty Export promotion Currency appreciation None 38. Devaluation of a currency means: Increase in the value of domestic currency Decrease in the value of domestic currency No change in the exchange rate Ban on foreign exchange transactions None 39. Which type of exchange rate system is determined by supply and demand? Fixed exchange rate Floating exchange rate Pegged exchange rate Dual exchange rate None 40. If the demand for a good is perfectly inelastic, a price increase will: Reduce quantity demanded to zero Have no effect on quantity demanded Increase quantity demanded Make demand perfectly elastic 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. 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!
