Test CS 2203 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. The study of how individuals and societies allocate scarce resources is called: Accounting Economics Management Finance None 2. Which of the following is a macroeconomic concept? Demand and supply of a single product Inflation rate in a country Pricing of a specific commodity Cost minimization by a firm None 3. Opportunity cost is best described as: The actual money spent on an alternative The value of the next best alternative foregone The total cost of production The price of capital used None 4. A positive economic statement is one that: Is based on personal opinions Describes what ought to be Is based on facts and data Deals only with government policies None 5. Which of the following is NOT an example of a factor of production? Land Labor Capital Money None 6. The law of demand states that, ceteris paribus: Price and demand are positively related Price and demand are inversely related Demand remains constant regardless of price Price has no impact on demand None 7. A Giffen good is one where: Demand increases as price increases Demand decreases as price increases Demand remains constant despite price changes The good is considered a luxury None 8. If a good has many close substitutes, its price elasticity of demand will be: Zero High Low Unaffected None 9. When supply exceeds demand, it results in: A shortage An equilibrium A surplus A perfectly elastic supply None 10. Which of the following will cause an increase in demand? Increase in income (for a normal good) Increase in price Increase in production cost Increase in taxes None 11. The total revenue of a firm is calculated as: Price × Quantity sold Total cost + Profit Fixed cost × Variable cost Price ÷ Quantity sold None 12. Diminishing marginal returns occur when: Total output increases at a decreasing rate Output decreases as more units of input are added Total cost remains constant Marginal cost decreases with increased production None 13. Variable costs are costs that: Remain constant regardless of output Change with the level of production Are incurred even when production is zero Are the same as fixed costs None 14. Which of the following is an example of a fixed cost? Wages of temporary workers Cost of raw materials Rent of factory premises Electricity used in production None 15. Which market structure has the highest level of competition? Monopoly Oligopoly Perfect competition Monopolistic competition None 16. In the long run, all costs are: Fixed Variable Sunk Margina None 17. Price discrimination is possible under: Perfect competition Monopoly Oligopoly All of the above None 18. A cartel is a: Government organization controlling monopolies Group of firms that collude to fix prices Type of monopoly Pricing strategy used in perfect competition None 19. Which pricing strategy involves setting a high initial price and gradually lowering it over time? Penetration pricing Skimming pricing Cost-plus pricing Predatory pricing None 20. The kinked demand curve is associated with which market structure? Monopoly Oligopoly Perfect competition Monopolistic competition None 21. A contractionary monetary policy is used to: Reduce inflation Increase employment Boost consumer spending Increase GDP growth None 22. The unemployment rate is calculated as: (Unemployed / Labor force) × 100 (Labor force / Population) × 100 (Population / Labor force) × 100 (Employed / Labor force) × 100 None 23. Which of the following is an expansionary fiscal policy measure? Increasing taxes Reducing government spending Increasing government spending Increasing interest rates None 24. Which organization calculates India's GDP? Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) Central Statistics Office (CSO) World Bank None 25. The balance of payments includes: Only capital account transactions Only current account transactions Both current and capital account transactions Only government expenditures None 26. Which of the following is an advantage of international trade? Decreased competition Limited availability of goods Access to a wider variety of goods and services Increased trade barriers None 27. The difference between a country’s exports and imports of goods is known as: Balance of trade Balance of payments Fiscal deficit Capital account None 28. Dumping in international trade refers to: Selling goods below production cost in a foreign market Imposing high import duties Increasing domestic production Restricting foreign direct investment None 29. Which of the following is NOT an instrument of monetary policy? Bank rate Open market operations Government spending Cash Reserve Ratio (CRR) None 30. Which type of tax is levied on income earned by individuals? Indirect tax Direct tax Excise duty Value-added tax None 31. Which of the following is NOT a phase of the business cycle? Expansion Recession Stagnation Recovery None 32. A period of negative economic growth for two consecutive quarters is called: Depression Recession Boom Recovery None 33. Inflation caused by an increase in production costs is known as: Demand-pull inflation Cost-push inflation Hyperinflation Stagflation None 34. Which organization in India is responsible for controlling inflation? Securities and Exchange Board of India (SEBI) Reserve Bank of India (RBI) Ministry of Finance Central Bureau of Direct Taxes None 35. GDP growth due to improvements in technology and efficiency is known as: Nominal growth Sustainable growth Productivity-driven growth Cyclical growth None 36. The primary function of a central bank is to: Control inflation and regulate the money supply Provide loans to individuals Earn profits like a commercial bank Collect taxes None 37. Which of the following is NOT a function of commercial banks? Accepting deposits Lending money Controlling inflation Facilitating foreign exchange transactions None 38. The money market deals with: Long-term securities Short-term financial instruments Foreign currency exchange Real estate investments None 39. Which financial market deals with the issuance of new securities? Primary market Secondary market Money market Foreign exchange market None 40. Which financial institution in India regulates the stock market? Reserve Bank of India (RBI) Securities and Exchange Board of India (SEBI) Ministry of Finance Insurance Regulatory and Development Authority (IRDAI) 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!
