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- 1. Multiple Choice
There is an improvement in the production technology of a company. Assuming the price remains the same
the supply curve of the output will shift to the left.
the supply curve of the output will shift to the right.
the demand curve of the output will shift to the left.
the demand curve of the output will shift to the right.
- 2. Multiple Choice
What is likely to happen when there is an increase in income?
The demand for inferior goods will increase.
The demand for normal goods will increase.
The quantity demanded for inferior goods will increase.
The quantity demanded for normal goods will increase.
- 3. Multiple Choice
Gasoline and cars are considered as
inferior goods.
excellent goods.
substitute goods.
complementary goods.
- 4. Multiple Choice
The following are advantages of a Public Limited Company EXCEPT
limited liability.
more sources of funds.
more government regulations.
specialised management skills.
- 5. Multiple Choice
Firms involved in the extraction and harvesting of natural resources are classified under the
primary sector.
tertiary sector.
manufacturing sector.
secondary sector.
- 6. Multiple Choice
Larry has invested $100,000 in a Japanese restaurant with a few partners. The partners agree to form a limited partnership. What is the advantage of this partnership?
Limited life.
Unlimited liability.
Dilution of control
More funds available.
- 7. Multiple Choice
What do entrepreneurs receive for successful risk taking?
Gifts.
Profits.
Rent.
Wages.
- 8. Multiple Choice
Equipment in the production process that is controlled by a computer is known as
automation.
innovation.
mechanisation.
sterilisation.
- 9. Multiple Choice
Which of the following company has the highest productivity?
Output=20, number of employees=15.
Output=20, number of employees=10
Output=20, number of employees=20.
Output=20, number of employees=30
- 10. Multiple Choice
Paul expects the Goods And Services Tax to increase over the next few months. As a consumer, what is he likely to do now?
Buy less goods and services which will lead to a decrease in supply.
Buy less goods and services which will lead to a decrease in demand.
Buy more goods and services which will lead to an increase in demand.
Buy more goods and services which will lead to an increase in quantity demanded.
- 11. Multiple Choice
The law of demand states that ceteris paribus, the higher the price of a good
the lower the demand of the good
the higher the demand of the good.
the lower the quantity demanded of the good.
the higher the quantity demanded of the good.
- 12. Multiple Choice
Which one of the following is not a factor affecting demand?
Income.
Weather conditions.
Tastes and preferences.
Population size and demographic structure.
- 13. Multiple Choice
Which one of the following would shift the supply curve for automobiles to the left?
The price of petrol rises.
The price of automobiles falls
The price of automobiles rises.
The cost of production of automobiles has increased.
- 14. Multiple Choice
The following are the advantages of a sole proprietorship EXCEPT
flexibility.
limited life.
ease of formation.
control of business.
- 15. Multiple Choice
Firms involved in the conversion of raw materials into finished goods are classified under the
tertiary industry.
primary industry.
secondary industry.
service industry
- 16. Multiple Choice
Sweet bubble tea has a few partners and they agree to form a General partnership.
What is the disadvantage of this partnership?
Savings in tax.
Unlimited liability.
Enhanced credit standing.
Possibilities of growth and expansion.
- 17. Multiple Choice
The factor of production that refers to money brought into the business is known as
capital.
land.
labour.
entrepreneurship
- 18. Multiple Choice
Tasks that are done by machines operated by humans is known as
automation
innovation.
mechanisation
sterilisation.
- 19. Multiple Choice
Productivity is measured by
number of employees / input over a period of time.
input over a period of time / number of employees.
output over a period of time / number of employees.
output over a period of time / input over a period of time.
- 20. Multiple Choice
Jasper who is one of the major suppliers of flour believes that the price of flour will move up gradually over the next few weeks. What will happen to the supply of flour now?
Supply to cease.
Supply to incease.
Supply to decease.
Supply to maintain.
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