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Test: Business Economics - 4


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50 Questions MCQ Test Business Economics for CA Foundation | Test: Business Economics - 4

Test: Business Economics - 4 for CA Foundation 2023 is part of Business Economics for CA Foundation preparation. The Test: Business Economics - 4 questions and answers have been prepared according to the CA Foundation exam syllabus.The Test: Business Economics - 4 MCQs are made for CA Foundation 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Business Economics - 4 below.
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Test: Business Economics - 4 - Question 1

A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is

Test: Business Economics - 4 - Question 2

____________ is the apex bank for agriculture credit.

Test: Business Economics - 4 - Question 3

Directions: Read the following figure and answer the question.

Q. Which of the following represents the concept of trade-offs?

Test: Business Economics - 4 - Question 4

Nearly __________ percent of working population is engaged in the service sector.

Test: Business Economics - 4 - Question 5

Who expressed the view that "Economics should be neutral between ends"?

Test: Business Economics - 4 - Question 6

When ________________________, we know that the firms are earning just normal profits.

Test: Business Economics - 4 - Question 7

A situation of employment in which a person is apparently employed but his contribution to the production is almost nil is called ________ unemployment.

Test: Business Economics - 4 - Question 8

Suppose a department store has a sale on its silverware. If the price of a place-setting is reduced from Rs. 300 to Rs. 200 and the quantity demanded increases from 3,000 place-settings to 5,000 place-settings, what is the price elasticity of demand for silverware? (use Arc elasticity)

Test: Business Economics - 4 - Question 9

Directions: Use the given table to answer the question.

Q. What will be the total output when 2 hours of labour is employed?

Test: Business Economics - 4 - Question 10

Find the tax which is direct tax among the following

Test: Business Economics - 4 - Question 11

The average product of labour is maximised when marginal product of labour

Test: Business Economics - 4 - Question 12

Which of the following conditions is satisfied when a consumer is in equilibrium?

Test: Business Economics - 4 - Question 13

If the local pizzeria raises the price of a medium pizza from Rs. 60 to Rs. 100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the arc price elasticity of demand for pizzas is

Test: Business Economics - 4 - Question 14

What implication does resource scarcity have for the satisfaction of wants?

Test: Business Economics - 4 - Question 15

Directions: Read the following paragraph and answer the question.

In 1940, Hitler`s air force bombed Rotterdam, a beautiful city in Holland. Twenty five thousand homes, 1200 factories, 69 schools and 13 hospitals were destroyed. Nearly 75,000 people became homeless and 1000 people died. 35 % of the port was gutted by the German army.
If immediately after the war, Rotterdam rebuilt its port with the help of most up to date cranes, docks and cargo handling technology. By the end of the reconstruction, ships were loading and unloading faster and at lower cost than any where in the world. It became more efficient than it was before the destruction. This means

Test: Business Economics - 4 - Question 16

Directions: Read the following paragraph and answer the question.

In 1940, Hitler`s air force bombed Rotterdam, a beautiful city in Holland. Twenty five thousand homes, 1200 factories, 69 schools and 13 hospitals were destroyed. Nearly 75,000 people became homeless and 1000 people died. 35 % of the port was gutted by the German army.

Q. The above destruction would mean

Test: Business Economics - 4 - Question 17

Under ____________ market condition, firms make normal profits in the long run.

Test: Business Economics - 4 - Question 18

Directions: Use the table below to answer the question.

Q. The marginal cost of the sixth unit of output is

Detailed Solution for Test: Business Economics - 4 - Question 18

Correct Answer :- c

Explanation : In the above table, 

MC = 690 - 610 = 80.

Test: Business Economics - 4 - Question 19

Directions: Use the table below to answer the question.

Q. The average fixed cost of two units of output is

Test: Business Economics - 4 - Question 20

Which is of the following statements is correct?

Test: Business Economics - 4 - Question 21

In order to control credit

Test: Business Economics - 4 - Question 22

According to the Planning Commission, a person is said to be below poverty line, if he is earning less than ___________ per capita per month for urban areas and less than ____________ per capita per month for rural areas.

Test: Business Economics - 4 - Question 23

Directions: Read the following figure and answer the question.

Q. Unemployment or underemployment of one or more resources is illustrated by production at point

Test: Business Economics - 4 - Question 24

Directions: Use the table to answer the question.

Q. What is the average product of the first three hours of labour?

Test: Business Economics - 4 - Question 25

Price-taking firms, i.e., firms that operate in a perfectly competitive market, are said to be "small" relative to the market. Which of the following best describes this smallness?

Test: Business Economics - 4 - Question 26

__________ unemployment may result when some workers are temporarily out of work while changing job.

Test: Business Economics - 4 - Question 27

Which of the following pairs of goods is an example of substitutes?

Test: Business Economics - 4 - Question 28

What is India`s rank in world population?

Test: Business Economics - 4 - Question 29

Directions: Use the information given in the table below to answer the following question.

Production Possibilities:

Q. According to Table 2, the opportunity cost of increasing Good A`s production from 2 to 4 units is equal to

Test: Business Economics - 4 - Question 30

Which of the following statements is correct?

Test: Business Economics - 4 - Question 31

The industrial sector faced the process of retrogression and deceleration during

Test: Business Economics - 4 - Question 32

As a result of the New Industrial Policy, 1991

Test: Business Economics - 4 - Question 33

Consumer surplus means

Test: Business Economics - 4 - Question 34

In a free market economy, when consumers increase their purchase of a good and the level of ________________ exceeds ______________ then prices tend to rise.

Test: Business Economics - 4 - Question 35

The Tenth Plan aims at achieving a growth rate of _______________ in the industrial sector.

Test: Business Economics - 4 - Question 36

Directions: Study the following figure and answer the question.

Q. Which of the following would not move the PPF for this economy closer to point W?

Test: Business Economics - 4 - Question 37

Directions: Use the following table to answer the question.

Q. Given the data in the table, as one moves from successively from point A to points B, C, D, E and F, the opportunity cost of Good A

Test: Business Economics - 4 - Question 38

A discount store has a special offer on CDs. It reduces their price from Rs. 150 to Rs. 100. Suppose the store manager observes that the quantity demanded increases from 700 CDs to 1,300 CDs. What is the price elasticity of demand for CDs?(use arc elasticity)

Test: Business Economics - 4 - Question 39

Directions: Use the following table to answer the question.

Q. What is the marginal product of the third hour of labour?

Test: Business Economics - 4 - Question 40

In the production of wheat, all of the following are variable factors that are used by the farmer except

Test: Business Economics - 4 - Question 41

India has the _________ largest scientific and technical manpower in the world.

Test: Business Economics - 4 - Question 42

Suppose that a sole proprietorship is earning total revenues of Rs. 1,00,000 and is incurring explicit costs of Rs. 75,000. If the owner could work for another company for Rs. 30,000 a year, we would conclude that

Test: Business Economics - 4 - Question 43

A firm encounters its "shutdown point" when

Test: Business Economics - 4 - Question 44

Directions: Use Table 2 to answer the question.

Table 2:
Production Possibilities

Q. According to Table 2, the opportunity cost of increasing one unit of Good B from 10 units to 18 units is

Test: Business Economics - 4 - Question 45

The unsustainable levels of government deficits in the late 80`s can be attributed to

Test: Business Economics - 4 - Question 46

About ________ percent of the sick units in India are small units.

Test: Business Economics - 4 - Question 47

Directions: Study the given table and answer the following question.

Q. Diminishing marginal returns start to occur between units

Test: Business Economics - 4 - Question 48

In describing a given production technology, the short run is best described as lasting

Test: Business Economics - 4 - Question 49

Larger production of ____________ would lead to higher production in future.

Test: Business Economics - 4 - Question 50

Service sector accounted for nearly ______________ percent of exports (2004-05).

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