Business Acumen quizzes. 1
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 .
a. Supply-side deflation
b. Demand-pull inflation
c. Credit deflation
d. Cost-push inflation
, 2
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.
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 .
a. Supply-side deflation
b. Demand-pull inflation
c. Credit deflation
d. Cost-push inflation
, 2
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.
