Test: Nature And Scope Of Business- 3


10 Questions MCQ Test Business Economics for CA Foundation | Test: Nature And Scope Of Business- 3


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QUESTION: 1

Based on the following conversation
Ram : “Rise in prices of goods have made it difficult to make two ends meet”
Shy am : “Yes, the cost of cultivation too has increased very much”.
Raghu : “Government should take steps to curb the price rise and provide relief to common man”.
Bhola : “Yes, he government should deal strictly on hoarders and black marketers”.
Q. In the above conversation whose statements shows normative side of economics

Solution:
QUESTION: 2

Based on the following conversation
Ram : “Rise in prices of goods have made it difficult to make two ends meet”
Shy am : “Yes, the cost of cultivation too has increased very much”.
Raghu : “Government should take steps to curb the price rise and provide relief to common man”.
Bhola : “Yes, he government should deal strictly on hoarders and black marketers”.
Q. Shyam’s statement in the above conversation shows—

Solution:
QUESTION: 3

Based on the following conversation
Ram : “Rise in prices of goods have made it difficult to make two ends meet”
Shy am : “Yes, the cost of cultivation too has increased very much”.
Raghu : “Government should take steps to curb the price rise and provide relief to common man”.
Bhola : “Yes, he government should deal strictly on hoarders and black marketers”.
Q. Bhola’s statement in the above conversation shows—

Solution:
QUESTION: 4

As compared to other economic systems, inequalities of incomes is relatively less in economic system

Solution:
QUESTION: 5

Price-mechanism is an important feature of –
(i) Market economy
(ii) Regulated economy
(iii) Mixed economy
(iv) Capitalist economy

Solution:

Price-mechanism is an important feature of the capitalist economy, also called the market economy. In this, the prices are determined by the free interaction of the forces of demand and supply. It is an automatic self-regulating mechanism which runs with the motive of profit. 

QUESTION: 6

Consumers and producers make their choices based on the market forces of demand and supply in—

Solution:

Consumers and producers make their choices based on the market forces of demand and supply in Capitalist economy. Capitalist economy is also called the market economy in which the prices are determined by the free interaction of the forces of demand and supply. It is an automatic self-regulating mechanism which runs with the motive of profit. 

QUESTION: 7

The problem of what goods and services are produced and how much, is covered by the general term—

Solution:
QUESTION: 8

Business Economics is generally in nature.

Solution:

Business economic seeks to establish rules which help business firms attain their goals, which indeed is also the essence of the word normative. However, if the firms are to establish valid decision rules, they must thoroughly understand their environment.

QUESTION: 9

Capital intensive technique would be chosen in a 

Solution:
QUESTION: 10

Which of the following statement is incorrect?

Solution: