Economics and Business Strategy Mcq's
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 does not make assumptions about human behaviour, as human behaviour changes a lot. B) Economics assumes individuals act rationally all of the time and in all circumstances. C) People weigh factors such as religion, envy, compassion and anger in all the decisions they make. D) Assuming rational behaviour is useful in explaining the choices people make, even though people may not behave rationally all the time. 4) In economics, an optimal decision involves carrying out an activity up to the point where: A) the marginal benefit of the activity is equal to the marginal cost of the activity. B) the opportunity cost of the activity is negative. C) the marginal benefit of the activity is greater than the marginal cost of the activity. D) the opportunity cost of the activity is zero. 5) Which of the following is correct with respect to how firms, in reality, determine the optimal level of production? A) Firms often have to make careful calculations using marginal analysis to determine the optimal level of production. B) Profit maximising output is found where marginal benefit is as much larger than marginal cost as possible. C) The optimising rule of economics has no relevance to operating a business, only to individuals. D) It is very
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 does not make assumptions about human behaviour, as human behaviour changes a lot. B) Economics assumes individuals act rationally all of the time and in all circumstances. C) People weigh factors such as religion, envy, compassion and anger in all the decisions they make. D) Assuming rational behaviour is useful in explaining the choices people make, even though people may not behave rationally all the time. 4) In economics, an optimal decision involves carrying out an activity up to the point where: A) the marginal benefit of the activity is equal to the marginal cost of the activity. B) the opportunity cost of the activity is negative. C) the marginal benefit of the activity is greater than the marginal cost of the activity. D) the opportunity cost of the activity is zero. 5) Which of the following is correct with respect to how firms, in reality, determine the optimal level of production? A) Firms often have to make careful calculations using marginal analysis to determine the optimal level of production. B) Profit maximising output is found where marginal benefit is as much larger than marginal cost as possible. C) The optimising rule of economics has no relevance to operating a business, only to individuals. D) It is very