LILHA EDUCATION CENTRE- CA FOUNDATION-SECTION-A BUSINESS ECONOMIC (MOCK TEST)

JavaScript isn't enabled in your browser, so this file can't be opened. Enable and reload.

NAME- *

CONTACT NO- *

1. The term "Mixed Economy" denotes:

1 point

Co-existence of both consumers and producers good's industries in the economy

Co-existence of both private and public sectors in the economy

Co-existence of both rural and urban sectors in the economy.

Co-existence of both large and small industries in the economy.

Clear selection

2. Suppose the price of movie seen at atheatre rises from ₹120 per person to ₹200 per person. The theatre manager observed that the rise in prices has lead to a fall in attendance at a given movie from 300 person to 200 persons. What is the price elasticity of demand for the movie? (Are elasticity)

1 point

0.5

0.8

1.00

None of these

Clear selection

3. The Slope of Indifference Curve Indicates

1 point

Marginal Rate of Substitution of x for y

Prices of x and y

Slope of the budget line

Change in prices

Clear selection

4. Yesterday, seller a supplied 400 units of a good X at ₹10 per unit. Today, Seller a supplies the same quantity of units at ₹5 per unit . Based on the evidence, seller a has experienced a (an)

1 point

Decrease in supply.

Increase in supply.

Increase in the quantity supplied.

Decrease in the quantity supplied.

Clear selection

5. Price discrimination is asituation when a producer.

1 point

Charges different prices in different markets.

Charges same price.

Charges many prices

All of the above

Clear selection

6. If oligopolists engage in collusion and seccessfully from a cartel, the market outcome is

1 point

The same as if were served by a monopoly

The same as if it were served by competitive

Efficient because cooperation improves efficiency

Known as Nash equilibrium.

Clear selection

7. In the case of complimentary goods the shape of indifference curve will be:

1 point

Convex to the origin

Straight line

L Shaped

Circular

Clear selection

8. From which of the following the concept of consumer's surplus has been derived?

1 point

Law of diminishing margnal utility

Law of demand

Law of supply

Indifference curve analysis

Option 4

Clear selection

9. Which of the following statements is incorrect?

1 point

Unlike normative economics, positive economics is based on objective analysis of economic issues.

The opportunity cost of goods is the quantity of the other goods sacrificed to get another unit of that good.

Microeconomics emphasizes interactions in the economy as a whole.

None of the above.

Clear selection

10. Which of the following statements is normative?

1 point

Large government deficits cause an economy to grow more slowly.

People work harder if the wage is higher

The unemployment rate should be less.

Printing too much money causes inflation

Clear selection

11. The income of household rises by 20 per cent, the demand for computer rises by 25 per cent, this means computer (in Economics) is a / an

1 point

Inferior good

Luxury good

Necessity

Can't say

Clear selection

12. Diminishing marginal returns implies:

1 point

Decreasing average variable costs

Decreasing marginal costs

Increasing average variable costs

Decreasing average fixed costs

Clear selection

13. function of the entrepreneur are:

1 point

Risk bearing

Initiating a business enteprise and resources co-ordinating

Introducing new innovations

All of the above

Clear selection

14. Increasing returns to scale occurs due to

1 point

Economies of scale

Specialization

Indivisibility of factors

All of these

Clear selection

15. Which one of the following statements is not correct?

1 point

Land has indestructible

Labour is mobile

Capital is nature's gift

Land is a passive factor.

Clear selection

16. Whic of the following is not a characteristic of labour ?

1 point

It is perishable

It has weak bargaining power

Labour and Labour power cannot be separated

Labour is not mobile.

Clear selection

17. The demand for a factor of production is said to be a derived demand because

1 point

It is a function of the profitability of an enterprise

It deppends on the supply of complementary factors

Its stems from the demand for the final product

It arises out of means being scarce in relation to wants

Clear selection

18. Price discri mination is not possible:

1 point

Under Monopoly Situation

Under any Market firm

Under monopolistic competition

Under perfect competition

Clear selection

19. In short run, a firm in monopolistic competition

1 point

Always earns profits

Incurs losses

Earns normal profit only

May earn normal profit, supernormal profit or incur losses

Clear selection

20. If the income elasticity is greater than one the commodity is

1 point

Necessity

Luxury

Inferior goods

None of theses

Clear selection

21. Full capacity is utilized only when there is

1 point

Monopoly

Perfect competition

Price discrimination

Oligopoly

Clear selection

22. A firm's average fixed cost is ₹ 20 at 6 unit of output. What will it be at 4 units of output?

1 point

₹ 60

₹ 30

₹ 40

₹ 20

Clear selection

23. When_____________ we know that the firm are earning just normal profits:

1 point

AC = AR

MC = MR

MC = AC

AR = MR

Clear selection

24. The kinked demand curve model of oilgopoly assumes that:

1 point

Response (of consumers) to a price increase is less than the reponse to a price decrease

Response (of consumers) to a price increase is more than the reponse to a price decrease

Elasticity of demand is constant regardless of whether price increases or decreases

Elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases.

Clear selection

25. Marginal Cost is defined as:

1 point

The change in total cost due to one unit change in output

Total cost divided by output

The change in output due to a one unit change in an input

Total product divided by the quantity of input

Clear selection

26. 1Which one of the following statements is incorrect?

1 point

Even monopolist can earn losses.

Firms in a perfectly competitive market are price takers

It is always beneficial for a firm in the perfectly competitive market to discriminate prices

Economic laws are less exact than laws of physical sciences

Clear selection

27. When shape of average cost curve is upward, marginal cost:

1 point

Must be decreasing

Must be constant

Must be rising

Any of these

Clear selection

28. Economic cost excludes which of the following:

1 point

Accounting cost + explicit cost

Accounting cost + implicit cost

Explicit cost + Implicit cost

Accounting cost + opportunity cost

Clear selection

29. What is the total cost of production of 20 units, if fixed cost is ₹ 5,000 and variable cost is ₹2/-?

1 point

5,400

5,040

4,960

5,020

Clear selection

30. At which point does the marginal cost curve intersect the average variable cost curve and short run average total cost curve?

1 point

At equilibrium points

At their lowest points

At their optimum points

They don't intersect at all

Clear selection

31. In which of the following stage of economic cycle both employment and output expand and level of aggregate demand for goods and services is high?

1 point

Economic Recession

Economic Boom

Economic Recovery

Economic Slowdown.

Clear selection

32. During the slowdown of economy:

1 point

GDP is decreasing

GDP is increasing

GDP is increasing at a slower rate

None of the above

Clear selection

33. In which of the following stage of economic cycle, both employment and output expand and level of aggregate demand for goods and services is high?

1 point

Economic Boom

Economic Recession

Economic Recovery

Economic Slowdown.

Clear selection

34. The market structure in which the number of sellers id small and there is inter dependence in decision making by the firm is known as:

1 point

Perfect Competition

Oligopoly

Option 3

MonopolistiMonopolyc competition

Clear selection

35. Which of these are characteristics of perfect Competition.

1 point

Many Sellers & Buyers

Homogeneous Product

Free Entry and Exit

All of the above

Clear selection

36. Under which Market Situation demand curve is linear and parallel to X axis:

1 point

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Clear selection

37. If regardless of changes in its price, the quantity demanded of a good remain unchanged, then the demand curve for the good will be:

1 point

Horizontal

Vertical

Positively sloped

Negatively sloped

Clear selection

38. If a good is a luxury, its income elasticity of demand is:

1 point

Positive and less than 1

Negative but greater than -1

Positive and greater than 1

zero

Clear selection

39. If the quantity demanded of mutton increases by 5% when the price of chicken increases by 20%, the cross- price elasticity of demand between mutton and chicken is:

1 point

-0.25

0.25

-4

Clear selection

40. By consumer surplus, economists mean

1 point

The area inside the budget line.

The area between the average revenue and marginal revenue curves

The difference between the maximum amount a person is willing to pay for a good and its market price.

None of the above

Clear selection

41. Conspicuous goods are also known as:

1 point

Prestige goods

Snob goods

Veblen goods

All of the above

Clear selection

42. The quantity purchased remains constant irrespective of change in income. This is known as

1 point

Negative income elasticity of demand

Income elasticity of demand less than one.

Zero income elasticity of demand

Income elasticity of demand is greater than one.

Clear selection

43. The price of a commodity decreases from Rs.6 to Rs.4 and the quantity demanded of the good increases from 10 units to 15 units, find the coefficient of price elasticity. ( Use point Elasticity Method)

1 point

1.5

2.5

-1.5

0.5

Clear selection

44. The supply function is given as Q = -100 +10 P. Find the elasticity using point method, when price is Rs.15.

1 point

-3

-5

Clear selection

45. Which of the following statement is correct?

1 point

When the price falls the quantity demanded falls.

Seasonal changes do not affect the supply of a commodity.

Taxes and subsidies do not influence the supply of the commodity.

With lower cost, it is profitable to supply more of the commodity

Clear selection

46. Suppose potatoes have (-).0.4 as income elasticity. We can say from the data given that:

1 point

Potatoes are inferior goods.

Potatoes are superior goods.

Potatoes are necessities.

There is a need to increases the income of consumers so that they can purchase potatoes

Clear selection

47. Direct Cost is also known as:

1 point

Indirect Cost

Traceable Cost

Opportunity Cost

Accounting

Clear selection

48. What will be the AFC of 3 units of Output as per table given below

1 point

100

1,000

200

400

Clear selection

49. Cost in terms of pain, discomfort, disability involved in supplying the various factors of production by their owners are termed as _________________

1 point

Social Cost

Explicit Cost

Real Cost

Implicit Cost

Clear selection

50. External Economies arise due to

1 point

Growth of ancillary industries

Higher Cost of technologies

Increase in the price of factors of production.

None of the above

Clear selection

51. A rational producer will produce in the stage in which marginal product is positive and:

1 point

MP> AP

MP = AP

MP < AP

MP is zero

Clear selection

52. Marginal revenue will be negative if elasticity of demand is

1 point

The price of mangoes.

The cost of producing a fire truck for the fire department of Delhi, India.

The quantity of mangoes produced for the mangoes market.

The national economy’s annual rate of growth

Clear selection

53. A firm learns that the own price elasticity of a product it manufactures is 3.5. What would be the correctaction for this firm to take if it wishes to raise its total revenue?

1 point

Lower the price because demand for the good is elastic.

Raise the price because demand for the product is inelastic.

Raise the price because demand is elastic.

We need information in order to answer this question.

Clear selection

54. Contraction of demand is the result of:

1 point

Decrease in the number of consumers

Increase in the price of the goods concerned

Increase in the price of other goods

Decrease in the income of purchases

Clear selection

55. In the long run any firm will eventually leave the industry if:

1 point

Price does not at least cover average total cost.

Price does not equal marginal cost.

Economies of scale are being reaped.

Price is greater than long run average cost.

Clear selection

56. The most probable outcome of an increase in the money supply is

1 point

Interest rates to rise, investment spending to rise, and aggregate demand to rise

Interest rates to rise, investment spending to fall, and aggregate demand to fall

Interest rates to fall, investment spending to rise, and aggregate demand to rise

Interest rates to fall, investment spending to fall, and aggregate demand to fall

Clear selection

57. Assume that in the market for good Z there is a simultaneous increase in demand and the quantity supplied.The result will be:

1 point

An increase in equilibrium price and quantity.

A decrease in equilibrium price and quantity.

An increase in equilibrium quantity and uncertain effect on equilibrium price.

A decrease in equilibrium price and increase in equilibrium quantity.

Clear selection

58. Which of the following curves is not U-shaped?

1 point

Average fixed cost curve

Average variable cost curve

Average total cost curve

Marginal cost curve

Clear selection

59. The demand curve of a firm under a perfectly competitive market will be

1 point

Vertical

Horizontal

Negatively slopped

Positively slopped

Clear selection

60. Firm under perfect competition in the short run earn only

1 point

Abnormal profit

Normal Profit

A Loss

Any of the above

Clear selection

1. What was the initial name of Apple Inc.?

1 point

Apple corporation

Apple Computer Inc.

Apple IT solutions

Apple Mac Inc.

Clear selection

2. State Bank of India was formerly known as:

1 point

Bank of Madras

Bank of Calcutta

Imperial Bank

Indian Bank

Clear selection

3. FIPB stands for:

1 point

Foreign Institutional Promotion Board

Foreign Institutional Preparatory Board

Foreign Investment Priority Board

Foreign Investment Promotion Board

Clear selection

4. FEMA replaced FERA as legislation in:

1 point

1991

1992

1999

2006

Clear selection

5. It is known as electronic cash and digital cash, it uses computer, internet and other networks to execute transactions and transfer funds.

1 point

Cash

E- Cash

E- Commerce

None

Clear selection

6. It is known as electronic cash and digital cash, it uses computer, internet and other networks to execute transactions and transfer funds.

1 point

Dr. Reddy's

Lupin Ltd.

Cipla Ltd.

Sun pharmaceutical Industries.

Clear selection

7. Sun pharmaceutical Industries.

1 point

Stock prices are decreasing consistently

Stock Prices are increasing consistently

Stock Prices are stable

Stock Prices are wildly fluctuating

Clear selection

8. Which one of the following is an Indian Regulatory Body that facilitates business organizations?

1 point

EXIM Bank

NABARD

IRDA

IFCI

Clear selection

9. ________ are important and specific occurrences taking place in different environmental sectors.

1 point

Trends

Events

Issues

Expectations

Clear selection

10. Hyundai India Limited came to India through the FDI route. It followed the path of:

1 point

Divestment in Public Sector Unit

Joint Venture

By creating a 100% Indian subsidiary

Replacement of a government sector business.

Clear selection

11. __________ is a technology where the banking organizations resorts to the the use of electronics computers and other networks to execute transactions and transfer funds.

1 point

E-cash

Digi- Cash

Hedge

Cap

Clear selection

12. Shares of large,well established and financially sound companies with an impressive records of earning dividends.

1 point

Corporations

Top Companies

Blue Chips

Top Chips

Clear selection

13. Unsecured short term promissory notes of large firms.

1 point

Bill of exchange

Unsecured loan

Treasury Bill

Commercial Paper

Clear selection

14. Charging high price for a short time when a new and innovation product is launched in the market is.

1 point

Price Skinmming

Penetration Financing

Innovating Pricing

New Pricing

Clear selection

15. A very large loan by a group of small bank to a single borrower-

1 point

Mega Loan

Syndicated Loan

Group Loan

Blanket Loan

Clear selection

16. Public policies are always ____________ oriented

1 point

Goal

Welfare

Finance

GDP

Clear selection

17. OCB stands for _________

1 point

Operational Corporate Body

Operational Company Board

Overseas Corporate Body

Overseas Company Board

Clear selection

18. FDI is prohibited in India in ______________

1 point

Fast Food

Mobile Phone

Atomic Energy

Thermal Power

Clear selection

19. Hyundai India Ltd. came to India through the FDI route, it followed the path of:

1 point

Divestment in Public sector

Joint Venture

By creating a 100% Indian Subsidiary

Replacement of a Government sector business

Clear selection

26. Which one of the following is an Indian Regulatory body that facilitates business organisation

1 point

EXIM Bank

NABARD

IRDAI

IFCI

Clear selection

27. When was IRDAI constituted?

1 point

1997

1998

1999

2000

Clear selection

28. Where can the first appeal against SEBI be made?

1 point

High Court

Supreme Court

Securites Appellate Tribunal

RBI

Clear selection

29. SERVO brand is developed by ___________

1 point

ONGC

GAIL

Indian Oil Co. Ltd

Reliance Industries Ltd

Clear selection

30. Adani Group has its headquarters in:

1 point

Maharashtra

Gujrat

Karnataka

Rajasthan

Clear selection

31. Legislature, executive and Judiciary comes under the _____

1 point

Political environment

Physical Environment

Legal Environment

Both a and c

Clear selection

32. Which one of the following is the result of product differentiation?

1 point

Brand Equity

Competitive advantage

Value system

None of above

Clear selection

33. Mission statement of a company is derived from the:

1 point

Article of Association

Vision statement

Memorandum of Association

Prospectus

Clear selection

34. The affairs of a company are overseen by:

1 point

Shareholder

Employees

Board of Directors

Dividend holders

Clear selection

35. When did Microsoft begin its business in India?

1 point

1990

1991

1995

1989

Clear selection

36. Which of the following is not an Indian Development Bank?

1 point

EXIM Bank

NABARD

RBI

IFCI

Clear selection

37. Which one is not a feature of LLP

1 point

It is a legal entity separate from its member.

No limit on maximum no. of members

Every partner is only agent of firm

Registrar of firm is the administrating authority

Clear selection

38. Which of the following is not a factor of Demographic Environment?

1 point

Ethnic Mix

Legal

Population size

Geographic Distribution

Clear selection

39. Which Section of IRDAI Act, 1999 lays down the duties, powers and functions of IRDAI?

1 point

Section 10

Section 12

Section 14

Section 5

Clear selection

40. Which analysis is used for proactive and strategic thinking in its decision making?

1 point

SWOT

TOWS

PESTLE

None

Clear selection

Submit

Clear form

Never submit passwords through Google Forms.

This content is neither created nor endorsed by Google. - Terms of Service - Privacy Policy

Does this form look suspicious? Report

Forms