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Amity Global Business School Business Economics

Business Economics – Quiz 1

Name: Date:
1. What is economics:
a. Study of demographics
b. Study of scare supply and unlimited demands of the economy
c. Study of unlimited supply and scarce demands of the economy
d. Study of opportunity cost
2. Subdivisions of economics are:
a. Microeconomics
b. Macroeconomics
c. Both of the above
d. None of the above
3. Microeconomic study is
a. Top down in nature
b. Bottom up in nature
c. Both of the above
d. None of the above
4. Macroeconomic study is
a. Top down in nature
b. Bottom up in nature
c. Both of the above
d. None of the above
5. Government role in an economic system is to:
a. Strike a balance in the economy
b. Manipulate the economy
c. Leave the economy as it is and focus on something else
d. None of the above
6. Flow from producer to consumer in an economic system is:
a. Consumer provides services and producer provides products to the market
b. Consumer consumes products and producer takes services from the
market
c. Both of the above
d. None of the above
7. Opportunity cost is the
a. First best alternative
b. Second best alternative
c. Third best alternative
d. Fourth best alternative
8. How does government exercise control over economy:
a. By manipulating the economy
b. By collecting taxes and providing resources and thus maintaining a balance
c. By producing goods
d. By consuming goods

Business Economics (MGBEN 10101) 1


Amity Global Business School Business Economics
9. In an economic system which of the following come into the
consumer?
a. Revenue
b. Resources
c. Wages
d. Taxes
10. In an economic system which of the following come into the
producer?
a. Revenue
b. Supply of goods
c. Payment
d. Taxes
11. In an economic system which of the following come into the
government?
a. Revenue
b. Labour
c. Wages
d. Taxes
12. What are the inputs to production of an economic system
a. Revenue
b. Expense
c. Resources
d. Subsidies
13. Demand rise if
a. Prices rise
b. Prices fall
c. Income levels rise
d. Non of the above
14. Quantity demanded increases if
a. Income levels rise
b. Income levels fall
c. Prices rise
d. Prices fall
15. Fill in the blanks

Business Economics (MGBEN 10101) 2