1
Business Acumen quizzes.
1. In general, as price of a good or service increases, the quantity demanded:
a. Remains the same irrespective of the product type
b. Declines
c. Increases
d. First increases and then decreases irrespective of the product type
2. A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.
a. Utility
b. Demand
c. Production possibility
d. Supply
3. Incentives to motivate employees to perform at their highest level are strongest in _____ systems.
a. Capitalist
b. Communist
c. Socialist
d. Collectivist
4. Flora Cult Inc., an exporter of flowers across the globe, operates in an industry where there are many sellers and
buyers. This makes it difficult for any one single seller or buyer to influence the market price of the flowers. Also, it is
difficult for sellers or exporters to differentiate their products from each other. What type of market structure does
this illustrate?
a. Monopoly
b. Monopolistic competition
c. Oligopoly
d. Pure competition
5. Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor
and texture. This type of market structure is known as _____.
a. Monopolistic competition
b. A monopoly
c. An oligopoly
d. Pure competition
6. Before the patent on its allergy medicine expired, Renova Pharma Inc. was able to set its own market price for the
drug. From which type of market structure did the company benefit?
a. Monopolistic competition
b. A monopoly
c. An oligopoly
d. Pure competition
7. United Narva is a nation in which industries like steel, communications, electricity, railways, education, and health
care are owned by the government. The leaders of the nation believe that it is detrimental to the public’s interest to
allow such core industries to be owned by private firms. However, private ownership is encouraged in industries like
restaurants, entertainment, and retail shops, which have a lower impact on social welfare. Which of the following
economic systems has United Narva adopted?
a. Individualism
b. Socialism
c. Communism
d. Capitalism
8. A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector
investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate
returns. What type of economic system does this country have?
a. Self-managed economy
b. Socialism
c. Communism
d. Mixed economy
9. Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price
of houses to increase, which is an example of _____.
, 2
a. Supply-side deflation
b. Demand-pull inflation
c. Credit deflation
d. Cost-push inflation
10. Farm laborers are out of work for some months after they have harvested and sold their produce. This is an example
of _____.
a. Seasonal unemployment
b. Structural unemployment
c. Frictional unemployment
d. Cyclical unemployment
11. Tom has been unemployed for a long time because he has not been able to find a job in which he can apply his
specialized knowledge about the Robostic Data System (RDS), a computer system that is now obsolete. What type of
unemployment is Tom facing?
a. Structural unemployment
b. Seasonal unemployment
c. Frictional unemployment
d. Cyclical unemployment
12. Which of the following is true of monetary policy?
a. It is a mechanism to control the flow of foreign currency into a nation by reducing its exports.
b. It uses variations in interest rate and money supply to influence a nation’s economy.
c. It uses taxation and spending to control economic activities.
d. It is dictated by international organizations like the United Nations.
13. Fiscal policy involves:
a. adjusting money supply by varying the exchange rate of the national currency.
b. curbing political activities by limiting the spending on political campaigns.
c. influencing economic activities by making decisions about taxes and government spending.
d. controlling the flow of foreign currency by reducing exports and increasing imports.
14. The government of Oaksland, a less-developed country, has been spending the revenue generated from taxes and
fees on infrastructural development, health care, and public utilities.
Its expenditure has exceeded its revenue. This condition referred to as a _____.
a. Positive balance of payment
b. Budget deficit
c. Trade surplus
d. Break-even point
15. When a manager tries to evaluate the price and the quantity of a product that will be sold, he or she is dealing with
microeconomics.
a. True
b. False
16. Who are most likely to make decisions regarding the purchase of other companies?
a. Supervisors
b. Top management
c. First-line managers
d. General managers
17. Valerie works directly with her subordinates. She allocates work to her team members and sets deadlines and targets
for each member. She also conducts performance appraisal for her team members. Valerie is most likely to belong to
_____.
a. Strategic management
b. Top management
c. First-line management
d. Middle management 18.
19. Janet is a manager who spends most of her time in day-to-day decisions assigning nonmanagerial employees to
specific jobs. Janet is considered a _____ manager.
a. Technical
b. Top
c. Mid-level
d. Supervisory
20. When Zeenath instructs new employees on handling customer complaints, she motivates them to respond with
patience and a positive attitude. Zeenath has effective _____ skills.
a. Human
Business Acumen quizzes.
1. In general, as price of a good or service increases, the quantity demanded:
a. Remains the same irrespective of the product type
b. Declines
c. Increases
d. First increases and then decreases irrespective of the product type
2. A graph showing the amount of a product that buyers will purchase at different prices is the _____ curve.
a. Utility
b. Demand
c. Production possibility
d. Supply
3. Incentives to motivate employees to perform at their highest level are strongest in _____ systems.
a. Capitalist
b. Communist
c. Socialist
d. Collectivist
4. Flora Cult Inc., an exporter of flowers across the globe, operates in an industry where there are many sellers and
buyers. This makes it difficult for any one single seller or buyer to influence the market price of the flowers. Also, it is
difficult for sellers or exporters to differentiate their products from each other. What type of market structure does
this illustrate?
a. Monopoly
b. Monopolistic competition
c. Oligopoly
d. Pure competition
5. Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor
and texture. This type of market structure is known as _____.
a. Monopolistic competition
b. A monopoly
c. An oligopoly
d. Pure competition
6. Before the patent on its allergy medicine expired, Renova Pharma Inc. was able to set its own market price for the
drug. From which type of market structure did the company benefit?
a. Monopolistic competition
b. A monopoly
c. An oligopoly
d. Pure competition
7. United Narva is a nation in which industries like steel, communications, electricity, railways, education, and health
care are owned by the government. The leaders of the nation believe that it is detrimental to the public’s interest to
allow such core industries to be owned by private firms. However, private ownership is encouraged in industries like
restaurants, entertainment, and retail shops, which have a lower impact on social welfare. Which of the following
economic systems has United Narva adopted?
a. Individualism
b. Socialism
c. Communism
d. Capitalism
8. A country has a strong private sector, along with publicly-owned enterprises. Entrepreneurs and private-sector
investors are entitled to profits after paying taxes, and even state-owned enterprises are expected to generate
returns. What type of economic system does this country have?
a. Self-managed economy
b. Socialism
c. Communism
d. Mixed economy
9. Assume that the number of people wanting to buy houses in your locality increases sharply. This will cause the price
of houses to increase, which is an example of _____.
, 2
a. Supply-side deflation
b. Demand-pull inflation
c. Credit deflation
d. Cost-push inflation
10. Farm laborers are out of work for some months after they have harvested and sold their produce. This is an example
of _____.
a. Seasonal unemployment
b. Structural unemployment
c. Frictional unemployment
d. Cyclical unemployment
11. Tom has been unemployed for a long time because he has not been able to find a job in which he can apply his
specialized knowledge about the Robostic Data System (RDS), a computer system that is now obsolete. What type of
unemployment is Tom facing?
a. Structural unemployment
b. Seasonal unemployment
c. Frictional unemployment
d. Cyclical unemployment
12. Which of the following is true of monetary policy?
a. It is a mechanism to control the flow of foreign currency into a nation by reducing its exports.
b. It uses variations in interest rate and money supply to influence a nation’s economy.
c. It uses taxation and spending to control economic activities.
d. It is dictated by international organizations like the United Nations.
13. Fiscal policy involves:
a. adjusting money supply by varying the exchange rate of the national currency.
b. curbing political activities by limiting the spending on political campaigns.
c. influencing economic activities by making decisions about taxes and government spending.
d. controlling the flow of foreign currency by reducing exports and increasing imports.
14. The government of Oaksland, a less-developed country, has been spending the revenue generated from taxes and
fees on infrastructural development, health care, and public utilities.
Its expenditure has exceeded its revenue. This condition referred to as a _____.
a. Positive balance of payment
b. Budget deficit
c. Trade surplus
d. Break-even point
15. When a manager tries to evaluate the price and the quantity of a product that will be sold, he or she is dealing with
microeconomics.
a. True
b. False
16. Who are most likely to make decisions regarding the purchase of other companies?
a. Supervisors
b. Top management
c. First-line managers
d. General managers
17. Valerie works directly with her subordinates. She allocates work to her team members and sets deadlines and targets
for each member. She also conducts performance appraisal for her team members. Valerie is most likely to belong to
_____.
a. Strategic management
b. Top management
c. First-line management
d. Middle management 18.
19. Janet is a manager who spends most of her time in day-to-day decisions assigning nonmanagerial employees to
specific jobs. Janet is considered a _____ manager.
a. Technical
b. Top
c. Mid-level
d. Supervisory
20. When Zeenath instructs new employees on handling customer complaints, she motivates them to respond with
patience and a positive attitude. Zeenath has effective _____ skills.
a. Human
