Business Economics Mock Test - 5 Free Online Test 2026

In case the data were collected on the basis of sample, the users should satisfy themselves regarding the following:
a) adequacy of sample
b) use of proper sampling technique
c) collection of data by trained, experienced and unbiased investigator

if the industrial worker spent Rs 100 in 1982 for a basket of commodities, he needs Rs 526 in January 2005 to be able to buy an identical basket of commodities.

In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. A land is the only exception which cannot be depreciated as the value of land appreciates with time.

Macroeconomic study considers all the factors of an economy as a whole rather to considering them individually.
Therefore firms. individuals etc are micro economic units and central bank, governments etc are macro economic agents.

Microeconomics is the study of particular firm, particular household, individual price, wages, income, industry and particular commodity.

Arithmetic mean refers to the average amount in a given group of data. The arithmetic mean between a and b = (a+b)/2.
So if a is increased by 5 and b is increased by 5, then the
Arithmetic mean = {(a+5)+(b+5)}/2
= (a+b+10)/2
= (a+b)/2 + 10/2
= (a+b)/2 +5
Therefore, the arithmetic mean also increases by 5.

The factor cost method takes into account the cost incurred to employ factors of production in the economy. The factors of production, namely, land is paid rent, labour is paid wages, capital is paid interest and entrepreneur is paid profits. These costs are taken into account to measure national income using the factor cost method.

The income of the government through all its sources is called public revenue. Taxes are the major source of public revenue because today taxes are charged in almost all the sectors such as railways, cinema halls, toll plaza, restaurant, etc. Hence, bulk of public revenue comes from taxes.

In a flexible rate system, the price of the domestic currency in international markets is purely determined by the market forces of supply and demand. It is allowed to appreciate and depreciate as per the market conditions, without intervention by the central bank. The Federal Reserve does not intervene in the forex market for the US dollar and it is classified as a freely floating currency.  

A production which is the same for every firm in the industry is called a homogeneous product. One farmer’s carrots are indistinguishable from those produced by any other farmer. They are homogeneous. A market is said to be perfectly competitive when all firms act as price-takers — when they can sell as such as they like at the going price but nothing at a higher price as they sell homogeneous products.

Comparability is one of the important attributes for the numerical facts to be known as  statistics

Utility is the want-satisfying power of a commodity. It is the satisfaction, actual or expected, obtained from the consumption of a commodity. It differs from person-to-person, place-to-place and time-to-time. It is the ability of a good to satisfy a want.

Macroeconomics deals with all the issues affecting the national economy.
For example, an increase in the direct tax such as corporate income tax will increase the cost of the corporate sector.
Thus, in order to compensate their costs, one of the measure may be to lessen the employees which will further affect the unemployment in the economy.

Foreign investments includes _______.
foreign direct investments
portfolio investments
foreign institutional investments

Light of the sun cannot be accepted as a factor of production.

Adam Smith is called the 'father of economics'.

Milk & Bread are example of Non-durable good

Sampling refers to the selection of few items from a given group. Types of sampling include:
a) Random sampling
b) Deliberate sampling
Merits of sampling include:
a) it is less costly since only a few items are selected.
b) it requires less time since it is easy to deal with few items.
c) it gives detail information regarding to the selected sample.

Functions of money are:
stock of value
medium of exchange
measure of value

When total product is 100 units and units of variable factor are 4, average product will be  25

The monopolist is the sole producer in the industry and faces no competition, thus the main aim is profit maximization. To achieve this the monopolist will always produce at the point where MC = MR. If MR ≥ MC it is profitable to increase production.  If MR ≤ MC it is profitable to decrease production.

Expenditure method of measuring national income takes into account the expenditures made by various economic agents in the economy in a given year. The economic agents refers to individuals, households, business firms and government.

• check of increasing money incomes
• making available more of real goods & services

Economics is the science of human behaviour as individuals as well as economy as a whole. So when it comes to attach neutrality between two concepts or ends of economics, it becomes impossible due to its practical application that have given realistic results based on day to day life.

SEZ stands for Special Economic Zone. Government provides a lot of subsidies and facilities to the firms of these areas in order to uplift the standard of economic conditions of those people living in these areas.

The name of the single European currency is Euro. Almost all the countries in the European Union use Euro as their currency. This facilitates easy trade. However, Dollar is the currency of USA, Yen is of Japan and Pounds is of UK.

Other things being equal

True value added = Value added - depreciation

Socialism is a term applied to an economic system in which property is held in common and not individually, and relationships are governed by a political hierarchy. Common ownership doesn’t mean decisions are made collectively, however. Instead, individuals in positions of authority make decisions in the name of the collective group.

The economy of a country, which has acquired very high stage of development and where per capita income and standard of living is high, is termed as Developed economy. National income in development economies is very high. High national income implies a greater flow of goods and services in the economy. Developed economy has high level of efficiency and productivity. There is full utilization of human and natural resources.