Quiz : Introduction To Business
Welcome to the Introduction to Business Quiz. This test is developed to test your fundamental knowledge of business concepts and principles. If you are into business studies, we are sure that you'd like to test your basic knowledge of the topic. Please make sure to read all the questions carefully before answering. All the questions are compulsory. This informative quiz will surely expand your knowledge and make you think outside the box. You are free to attempt this quiz as many times as you like. Ready? So, let's start already!
Questions and Answers
- 1.
The quantity of products that people are willing to buy at different prices at a specific time is called:
Explanation
Demand refers to the quantity of products that individuals are willing and able to purchase at various prices at a given time. It represents the relationship between price and quantity demanded, indicating how much of a product consumers are willing to buy at different price points. Demand is influenced by factors such as price, income, consumer preferences, and market conditions. Understanding demand is crucial for businesses to determine pricing strategies and forecast consumer behavior.Rate this question:
- 2.
The right to own land, to keep the majority of their profits, the right of freedom of competition and the right to freedom of choice are features of what economic system?
- A.
Socialism
- B.
Communism
- C.
Marxism
- D.
Capitalism
Correct Answer
D. CapitalismExplanation
The features of owning land, keeping the majority of profits, freedom of competition, and freedom of choice align with the principles of capitalism. In a capitalist economic system, individuals and businesses have the right to private ownership of property, they can retain the profits they earn, competition is encouraged, and individuals have the freedom to make choices regarding their economic activities.Rate this question:
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- 3.
What is inflation?
- A.
The cost of producing services or goods.
- B.
A situation in which price increases are slowing.
- C.
A general rise in the prices of goods and services over time.
- D.
None of the above.
Correct Answer
C. A general rise in the prices of goods and services over time.Explanation
Some factors that causes inflation: the cost of production, high wages, high cost of machinery and raw materials, increased government charges(e.g. electricity etc.) Main cause: Increasing costs of production • higher wages • higher costs of machinery & raw materials • Increased government charges (e.g. electricity etc.) • d. Food Bottleneck. Due to slow growth of agriculture, over- Higher costs are passed on to the consumer via higher • pressure of growing population on land, primitive prices. methods of cultivation, defective land tenure system, lack of adequate irrigation facilities and many other reasons, An increase in the costs of production leads to a decrease in • agriculture output, especially food supply which constitutes profit margin, causing a decrease in supply a large part of wage-goods, has failed to keep pace with the growing demand for it from the growing population and. increased’ rural employment in the rural industrialization process in these countries. This food bottleneck has created the problem of price rise in food grains, and it has become the cornerstone in the whole of price-structure in the developing economies.Rate this question:
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- 4.
What does GDP stand for?
- A.
Gross Domestic Product
- B.
Good Distribution Practice
- C.
Global Detection Probability
- D.
Global Data Pool
Correct Answer
A. Gross Domestic ProductExplanation
The GDP is an index of total market values of goods and services produced by workers and capital within a nation's borders during a given period.Rate this question:
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- 5.
Which is a phase of the business cycle?
- A.
Economic boom and recession
- B.
Depression
- C.
Recovery
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The business cycle consists of different phases that the economy goes through. An economic boom refers to a period of rapid economic growth, characterized by increased production, high employment rates, and rising prices. A recession is a downturn in economic activity, marked by a decline in production, high unemployment rates, and falling prices. A depression is an extreme and prolonged recession, characterized by severe economic decline, widespread unemployment, and low business activity. Recovery is the phase when the economy starts to improve after a recession or depression. Therefore, all of the given options - economic boom and recession, depression, and recovery - are phases of the business cycle.Rate this question:
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- 6.
What is NAFTA?
- A.
North American Fareston versus Tamoxifen Adjuvant
- B.
Northern Apex Foreign Trade Association
- C.
North American Fiscal Treaty Agreement
- D.
North American Free Trade Agreement
Correct Answer
D. North American Free Trade AgreementExplanation
NAFTA refers to the North American Free Trade Agreement. This agreement is a trilateral trade bloc between the United States, Canada, and Mexico, established in 1994. It aims to eliminate trade barriers and promote economic cooperation between the member countries. Under NAFTA, tariffs on various goods and services are reduced or eliminated, facilitating trade and investment among the participating nations. The agreement has had a significant impact on the economies of the member countries, leading to increased trade and cross-border investments.Rate this question:
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- 7.
A person who risks both time and money to start and manage a business is called ___________.
- A.
Overachiever
- B.
Supervisor
- C.
Entrepreneur
- D.
Narcissist
Correct Answer
C. EntrepreneurExplanation
An entrepreneur is a person who takes the risk of investing both time and money to start and manage a business. They are typically driven by innovation, creativity, and a strong desire to succeed. Unlike a supervisor who oversees the work of others or an overachiever who sets high goals for themselves, an entrepreneur specifically takes on the financial and time-related risks associated with starting and running a business. A narcissist, on the other hand, is someone who has an excessive interest in themselves and their own achievements, which is not necessarily related to starting a business.Rate this question:
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- 8.
In business, stakeholders are defined as:
- A.
Only the people that purchase goods or services from a business.
- B.
Just the vendors that sells to the business.
- C.
All the people who stand to gain or lose by the policies and activities of a business.
- D.
Only the employees that are effected by the policies of a business.
Correct Answer
C. All the people who stand to gain or lose by the policies and activities of a business.Explanation
Stakeholders in business refer to all the individuals or groups who can be affected by the policies and activities of a business. This includes not only customers who purchase goods or services, but also vendors who sell to the business, employees who are impacted by the policies, and other individuals or groups who have a vested interest in the success or failure of the business. The term "stakeholders" encompasses a wide range of people who have a stake in the outcomes of the business's actions.Rate this question:
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- 9.
The amount of money a business earns above and beyond what it spends for salaries and other expenses is called:
- A.
Savings
- B.
Cash receipts
- C.
Revenue
- D.
Profit
Correct Answer
D. ProfitExplanation
Profit is the correct answer because it refers to the amount of money a business earns after deducting all expenses, including salaries and other costs. It represents the financial gain or surplus that a business generates from its operations. Profit is an important indicator of a company's financial performance and sustainability, as it demonstrates the ability to generate revenue in excess of expenses.Rate this question:
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- 10.
In order to gain a competitive edge on the competition, some companies focus on:
- A.
Very low prices
- B.
Greeting every customer
- C.
Professional sales pitch
- D.
Quality
Correct Answer
D. QualityExplanation
Some companies focus on quality in order to gain a competitive edge on the competition. By providing high-quality products or services, they are able to differentiate themselves from their competitors and attract customers who value excellence. Quality can enhance customer satisfaction and loyalty, leading to repeat business and positive word-of-mouth recommendations. Additionally, a focus on quality can also help companies build a strong reputation and brand image, further strengthening their competitive position in the market.Rate this question:
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- 11.
As of 2018, which country leads the world in manufacturing outputs?
- A.
United States
- B.
India
- C.
China
- D.
France
Correct Answer
C. ChinaExplanation
China leads the world in manufacturing outputs as of 2018. This is due to several factors such as its large population, extensive infrastructure, and low labor costs. China has become a global manufacturing hub, attracting multinational corporations to set up factories and production facilities in the country. It has a diverse manufacturing sector that encompasses various industries including electronics, automotive, textiles, and machinery. China's manufacturing prowess has allowed it to become a major exporter, contributing significantly to its economic growth and development.Rate this question:
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- 12.
The activity of providing goods or services to others while operating at a profit is called a _____________.
- A.
Consumer advocating.
- B.
Business.
- C.
Barter systems
- D.
None of the above.
Correct Answer
B. Business.Explanation
The correct answer is "business". This is because the activity of providing goods or services to others while operating at a profit is the fundamental definition of a business. Consumer advocating refers to promoting and protecting the rights of consumers, while barter systems involve the exchange of goods or services without the use of money. Therefore, neither of these options accurately describes the given activity.Rate this question:
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- 13.
Standard of living is the number of goods and services people can buy with the money they have. State true or false.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because the standard of living refers to the level of wealth, comfort, material goods, and necessities available to individuals or a society. It is directly related to the purchasing power and the ability to afford goods and services with the money one has. Thus, the higher the standard of living, the more goods and services a person can buy.Rate this question:
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- 14.
What is revenue?
- A.
The difference between the debit and the credit sides of an account.
- B.
Total sales during a stated period.
- C.
The money received by a business from customers.
- D.
All of the above
Correct Answer
B. Total sales during a stated period.Explanation
Revenue refers to the total sales generated by a business during a specified period. It represents the income received from customers in exchange for goods or services provided. The other options mentioned, such as the difference between debit and credit sides of an account and the money received by a business from customers, are not accurate definitions of revenue. Therefore, the correct answer is total sales during a stated period.Rate this question:
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- 15.
Productivity is __________________.
- A.
The process of producing goods
- B.
The amount of input you generate given the amount of output.
- C.
The amount of output you generate given the amount of input.
- D.
Revolt.
Correct Answer
C. The amount of output you generate given the amount of input.Explanation
Productivity refers to the measure of efficiency in generating output based on the input provided. It quantifies the relationship between the amount of output produced and the amount of input utilized. In other words, it assesses how effectively resources are utilized to produce goods or services. The correct answer states that productivity is "the amount of output you generate given the amount of input," which accurately captures the essence of productivity.Rate this question:
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- 16.
The branch of economics that studies the operation of a nation's economy as a whole is called ______________.
- A.
Reaganomics
- B.
Microeconomics
- C.
Free market
- D.
Macroeconomics
Correct Answer
D. MacroeconomicsExplanation
Macroeconomics is the branch of economics that focuses on the study of the overall functioning and behavior of an entire national economy. It examines factors such as national income, unemployment rates, inflation, and economic growth. This branch analyzes the aggregate behavior of households, businesses, and government entities to understand how they interact and influence the overall economy. By studying macroeconomics, policymakers and economists can gain insights into the factors that impact economic performance and make informed decisions to promote stability and growth.Rate this question:
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- 17.
Who is considered to be the Father of Economics?
- A.
Adam Smith
- B.
Frederick Taylor
- C.
Thomas Malthus
- D.
Thomas Carlye
Correct Answer
A. Adam SmithExplanation
Adam Smith is considered to be the Father of Economics because of his seminal work "The Wealth of Nations" published in 1776. In this book, Smith laid the foundation for modern economics by introducing the concept of the invisible hand, which explains how self-interest and competition in a free market can lead to the best outcome for society as a whole. Smith's ideas on free trade, division of labor, and the role of government in the economy have had a profound influence on the field of economics and continue to be studied and debated by economists worldwide.Rate this question:
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- 18.
What is oligopoly?
- A.
Total sales of an organization divided by the sales of the market they serve.
- B.
A form of competition in which just a few sellers dominate the market.
- C.
Assigning or allocating costs to a specified marketing activity.
- D.
None of the above
Correct Answer
B. A form of competition in which just a few sellers dominate the market.Explanation
Oligopoly refers to a form of competition where a small number of sellers dominate the market. In an oligopoly, a few large firms have significant control over the market, which can lead to limited competition and potential collusion between the dominant players. This market structure often results in barriers to entry for new competitors and can lead to higher prices and reduced consumer choice.Rate this question:
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- 19.
________ is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
- A.
Economics
- B.
Biology
- C.
Chemistry
- D.
Business
Correct Answer
A. EconomicsExplanation
Economics is the study of how society makes decisions on the allocation of limited resources to produce goods and services, and how these are distributed among different groups and individuals. It examines the principles of supply and demand, market behavior, production, consumption, and the overall functioning of economies. Economics plays a crucial role in understanding and analyzing various economic systems, policies, and issues, and helps in making informed decisions regarding resource allocation and distribution for the betterment of society.Rate this question:
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- 20.
The ______ price is the price determined by supply and demand.
- A.
Cost price
- B.
Selling price
- C.
Market price
- D.
None of the above
Correct Answer
C. Market priceExplanation
Market price refers to the price at which a product or service is bought and sold in the open market. It is determined by the interaction of supply and demand forces. When demand for a product or service is high and supply is limited, the market price tends to increase. Conversely, when demand is low and supply is abundant, the market price tends to decrease. Therefore, market price is the most accurate reflection of the prevailing economic conditions and the equilibrium point between buyers and sellers.Rate this question:
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- 21.
The market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers to be different is called the ________________ competition.
- A.
Monopolistic
- B.
Oligopoly
- C.
Perfect Competition Market
- D.
GDP
Correct Answer
A. MonopolisticExplanation
Monopolistic competition refers to a market situation where there are many sellers producing similar products, but each seller tries to differentiate their product through branding, marketing, or product features in order to attract buyers. This type of competition allows for some degree of market power for each seller, as they have the ability to set prices to some extent. However, there are still many sellers in the market, preventing any single seller from having complete control over the market. Therefore, the correct answer is "Monopolistic."Rate this question:
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- 22.
The movement of goods and services without political or economical encumbrance is called __________.
- A.
Free trade
- B.
External trade
- C.
Import trade
- D.
Income tax
Correct Answer
A. Free tradeExplanation
Free trade refers to the movement of goods and services between countries without any restrictions or barriers such as tariffs, quotas, or trade agreements. It promotes economic growth, encourages competition, and allows countries to specialize in producing goods and services that they have a comparative advantage in. Free trade also fosters international cooperation and helps to create a global market where countries can benefit from each other's resources and expertise.Rate this question:
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Mar 10, 2023Quiz Edited by
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Nov 26, 2008Quiz Created by
Hafer_student
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