MULTIPLE CHOICE QUESTION

ECONOMIC ANALYSIS FOR BUSINESS

1.______________is a relationship between how much there is of something and

how much of it is wanted.

a)Resources b)scarcity c)Efficiency d)Inefficiency

2.Resources are______________.

a)unlimited b)wanted c)limited d)wasted

3.Scarcity, the interaction of unlimited wants with limited resources has been
called the________________________.

a)economic growth b)economic efficiency c)economic problem d)scarcity

4.How may fundamentals in economic problems

a)four b)three c)two d)five

5.which is determines whether certain goods or services becomes profitable

or not in a given market.

a)profitable study b)business study c)resources study d)feasibility study

6.An economic activity involves the coordination of production , exchange

and____________________.

a)determination b)limitation c)consumption d)injection

7.The flow of revenue between different sectors of economy is the known

as_______________________.

a)money flow b)real flow c)circular flow d)income flow

8.there are__________ types of circular flow.

a)3 b)6 c)4 d)2

9.Income flow of income and expenditure is a cyclic flow in __________________
direction.

a) at the same b)an opposite c)right d)production

10.Who said, “By fiscals policy is meant the use of public finance or
expenditure , taxes , borrowing and financial administration to further our
national economic objective”.

a)Arthur Smithies b)Fiscal c)Keynesian d)Buehler

11.Fiscal policy is the combination of _________important terms.

a)Two b)Four c)Three d)one

12.Higher taxation leads to_______________ levels of specialization and ____________

economic efficiency.

a)lower and lower b)higher and lower c)higher and higher d)lower and
higher

13.____________________ discipline is a learned behavior.

a)Mundell b)Fiscal c)Keynesian d)Buehler

14. Which ONE of the following would lead a country’s balance of payments
current account to move towards a surplus?
A. A rise in commodity imports.
B. An inflow of foreign capital into the economy.
C. An increase in foreign tourism into the country.
D. An increase in government tax receipts.

15. An expansionary fiscal policy would be most likely to reduce

unemployment if the country had:
A. A high marginal propensity to import
B. A low marginal propensity to save.
C. A high marginal tax rate.
D. A low marginal propensity to consume.
16. If the demand curves for Good A shifts to the left when the price of Good B
rises, we may conclude that:
A. The goods are substitutes.
B. Good A is an inferior good.
C. The goods are complements.
D. The demand for Good A is price elastic.

17. Which ONE of the following would lead the demand curve for a good to
shift to the right?
A. A rise in consumer income where the good is a normal good.
B. A decrease in the supply of a complementary good.
C. An increase in the supply of a substitute good.
D. A fall in the price of the good.

18. The optimum level of output for a business is where:

A. Profits are maximized
B. Revenue is maximized
C. Marginal cost is minimized
D. Average cost is minimized

19.The breakeven output for a firm will be where:

A. Average cost is equal to average revenue
B. Average cost is at a minimum
C. Average revenue starts to fall
D. Average cost starts to rise

20.In order to remain in business in the short run, a firm’s revenue must be
sufficient to cover:
A. Its fixed costs
B. Its variable costs
C. Its total costs
D. Its total costs minus normal profit
PREPARED BY
THAMIZHMANI M
810420631021