Economics and Business Strategy Mcq's

4900 WordsAug 10, 201320 Pages
MBS666 Practice Multiple Choice Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Economics is the study of the ________ people make to attain their goals, given their ________ resources. A) decisions; household B) purchases; unlimited C) income; available D) choices; scarce 2) Which of the following is what economically rational people do? A) Respond to economic incentives. B) Weigh the benefits and costs of all possible alternative actions. C) Use all available information as they act to achieve their goals. D) Economically rational individuals do all of these. 3) Which of the following best describes the assumption about human behaviour that economics makes? A) Economics…show more content…
D) All of these options are correct. 12) Which of the following is a positive economic statement? A) People should not buy imported fruit and vegetables. B) The number of migrants should not be limited by the government. C) The government should subsidise solar power for home owners. D) Minimum wage laws cause unemployment. 13) Which of the following is a normative economic statement? A) The supply of petrol has not been able to meet the demand for petrol. B) Larger vehicles always use more fuel per kilometre than smaller vehicles. C) The current high price of petrol is the result of strong world-wide demand. D) The price of petrol is too high. 14) What is the economic impact of Adam Smith 's invisible hand? A) Some people are able to take advantage of others and earn large incomes. B) Law breakers are captured and punished. C) The market provides consumers with what they want. D) Chaos in a market not controlled by the government. 15) Which of the following statements about positive economic analysis is true? A) Normative economic analysis can be tested, but positive economic analysis cannot. B) Positive analysis uses an economic model to estimate the costs and benefits of different choices or actions. C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. D) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. 16) When the price of a

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