60 Multiple Choice Questions - Economics, HRM,

Production, Marketing

ECONOMICS (Q1–Q15)
Q1. What is the relationship between scarcity and trade-off? A. Scarcity forces choices, and
choices involve giving up alternatives B. Scarcity eliminates the need for trade-offs C. Trade-offs
cause resources to become unlimited D. Scarcity and trade-offs are unrelated
Q2. Which is the best example of opportunity cost? A. Choosing to attend a meeting instead of
working on another project B. Paying for raw materials in advance C. Receiving a government
subsidy D. Printing a company brochure
Q3. What happens when resources are scarce? A. Choices must be made about how to use them
B. Everyone gets what they want C. Prices automatically drop to zero D. Resources become
unlimited
Q4. Why do trade-offs occur? A. Because resources are limited but wants are unlimited B. Because
people dislike making choices C. Because costs are always zero D. Because efficiency eliminates
scarcity
Q5. Which scenario shows marginal thinking? A. Deciding to produce one more unit only if it adds
more benefit than cost B. Always producing at full capacity regardless of cost C. Choosing the
cheapest supplier without checking quality D. Ignoring additional production costs
Q6. What does opportunity cost measure? A. The value of the next best alternative given up B. The
total money spent on a choice C. The benefit of all possible options D. The cost of raw materials
Q7. Which is a positive incentive for employees? A. Offering performance bonuses B. Increasing
penalties for tardiness C. Reducing vacation days D. Charging higher lunch prices
Q8. What is the relationship between inflation and unemployment in the short run? A. Lower
unemployment can lead to higher inflation B. Higher unemployment always leads to zero inflation
C. Inflation and unemployment never affect each other D. Inflation decreases when unemployment
decreases
Q9. Which best describes a trade-off between efficiency and equity? A. Allocating resources to the
most productive use may reduce fairness B. Making everyone equal improves efficiency
automatically C. Efficiency and equity are the same D. Trade-offs never occur between them
Q10. Which is the best example of scarcity in business? A. Limited budget for both marketing and
equipment upgrades B. A warehouse full of unsold products C. An unlimited supply of skilled
workers D. Free raw materials from suppliers
Q11. How do people respond to incentives? A. Predictably, changing behavior when costs or
benefits change B. Randomly, without considering benefits or costs C. Only when incentives are
negative D. Only when incentives are monetary
Q12. What does “ceteris paribus” mean in economics? A. All other factors remain constant B. All
prices are flexible C. Demand and supply change together D. No trade-offs exist
Q13. Which situation shows the invisible hand at work? A. Markets allocate resources efficiently
through prices without central planning B. The government sets all prices and wages C. A company
ignores customer demand D. Prices are fixed by law
Q14. Which is a negative incentive? A. Charging a fine for late deliveries B. Giving gift cards for
early submissions C. Offering free training programs D. Granting flexible work hours
Q15. What is the true cost of a decision? A. Both explicit and opportunity costs B. Only the money
spent C. Only the time used D. Only the materials used
HRM (Q16–Q30)
Q16. What is the main purpose of job analysis? A. To identify the tasks, duties, and qualifications
for a role B. To monitor employee attendance C. To calculate payroll D. To set product prices
Q17. Which document explains day-to-day tasks of a job? A. Job description B. Employee
handbook C. Job specification D. Training manual
Q18. What does a job specification focus on? A. The skills, knowledge, and qualities needed for a
role B. The daily duties and responsibilities of the job C. The company’s mission statement D. The
physical location of the job
Q19. Which is an example of functional departmentalization? A. Grouping employees into Finance,
HR, and Marketing teams B. Grouping by customer type C. Grouping by product line D. Grouping
by geographic location
Q20. Why is designing organizational structure important? A. It clarifies authority, reporting lines,
and work flow B. It determines employee salaries only C. It eliminates all HR needs D. It guarantees
higher profits immediately
Q21. Which management function involves deciding goals before action? A. Planning B. Organizing
C. Leading D. Controlling
Q22. Which management function ensures tasks are done correctly and adjustments are made? A.
Controlling B. Planning C. Organizing D. Leading
Q23. In HRM, why are JDs and JSs important for recruitment? A. They clearly define the role and
the ideal candidate B. They guarantee employee promotions C. They replace the need for
interviews D. They automatically increase salaries
Q24. Which is an example of customer departmentalization? A. A bank creating separate
departments for corporate clients and individual clients B. Grouping all accountants together C.
Grouping employees by region D. Dividing staff by product type
Q25. Which is an example of job context? A. The work environment and reporting relationships of
the role B. The tasks and duties of the role C. The salary range of the role D. The required
education level
Q26. Which best describes the “leading” function of management? A. Motivating and guiding
employees toward goals B. Arranging tasks and resources C. Setting measurable objectives D.
Tracking expenses
Q27. Why are organizational structures important in accounting and AIS? A. They support internal
controls and accurate reporting B. They replace audit procedures C. They eliminate job descriptions
D. They remove management roles
Q28. Which is the primary benefit of performance management systems? A. Measuring employee
work against clear standards B. Eliminating all training needs C. Increasing payroll automatically D.
Removing low-performing employees without evidence
Q29. Which is the first step in the management process? A. Planning B. Leading C. Organizing D.
Controlling
Q30. Why is job analysis compared to an “X-ray” of a job? A. It reveals the role’s hidden details and
structure B. It detects fraud in the workplace C. It replaces physical interviews D. It checks
employee health

Answer Key
1-A
2-A
3-A
4-A
5-A
6-A
7-A
8-A
9-A
10-A
11-A
12-A
13-A
14-A
15-A
16-A
17-A
18-A
19-A
20-A
21-A
22-A
23-A
24-A
25-A
26-A
27-A
28-A
29-A
30-A