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Question 1:

A 'Balance of Payments' surplus occurs when:

The total of a country's credits in its balance of payments exceeds its debits The total of a country's debits exceeds its credits There is no trade between countries A country's imports exceed its exports

Question 2:

'Globalization' is characterized by:

Protectionist trade policies Increased interconnectedness and interdependence of economies Decrease in international trade Isolation of national economies

Question 3:

Internal economies of scale are:

Advantages that arise from external factors Cost advantages that arise from the expansion of the firm itself Cost advantages that arise from industry-wide expansion Disadvantages that arise from firm expansion

Question 4:

'External Economies of Scale' are associated with:

Advantages due to government policies Cost advantages specific to a single firm Cost advantages that accrue to firms as the industry grows Disadvantages due to external factors

Question 5:

The law of supply states that, ceteris paribus, the quantity supplied of a good:

Decreases as its price increases Increases as its price increases Increases as its price decreases Is unaffected by its price

Question 6:

Which of the following best defines the methodology in economics?

An analysis of historical economic data A set of principles governing economic behavior A systematic approach to studying economic phenomena A prediction of future economic trends

Question 7:

'National Income' can be defined as:

The total income earned by all citizens The total revenue of all businesses in a country The total income earned by the government The total value of all goods and services produced within a country over a specific time period

Question 8:

In the short run, the 'Cost-Output Relation' is typically represented by:

A U-shaped average cost curve A horizontal average cost curve A downward-sloping average cost curve A linear average cost curve

Question 9:

Which of the following is an example of an economic activity?

A friend helping another friend move A mother cooking for her family Volunteering at a charity event A teacher giving a private tuition

Question 10:

'Economic Profit' in the long run in a perfectly competitive market is:

Constant regardless of market conditions Positive Negative Zero

Quiz: Business Economics