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Page 1 1 MOCK TEST PAPER 1 FOUNDATION COURSE PAPER 4: BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE PART- I: BUSINESS ECONOMICS QUESTIONS 1. Which of the following are the characteristics of Business Economics: (a) It is a normative Science (b) It is inter disciplinary (c) Pragmatic in Nature (d) All of the above 2. Which branch of economic theory deals with allocation of resources: (a) Macro economic (b) Micro economic (c) Economic Growth (d) None of these 3. Under which system Freedom of choice is an advantage:- (a) Capitalism (b) Mixed economy (c) Socialism (d) None of these 4. Taxation involves which aspects of normative economics: (a) Incidence (b) Fairness (c) Incentive to work (d) All of the above 5. Suppose we are drawing a supply curve of a farmer which of the following will be held constant. : (a) Price of Inputs (b) Weather Conditions (c) Technology (d) The price of the Commodity under consideration 6. A fall in the price of a commodity where everything else is held constant is referred to as: (a) An increase in quantity demand (b) A decrease in demand (c) An increase in demand (d) None of these Page 2 1 MOCK TEST PAPER 1 FOUNDATION COURSE PAPER 4: BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE PART- I: BUSINESS ECONOMICS QUESTIONS 1. Which of the following are the characteristics of Business Economics: (a) It is a normative Science (b) It is inter disciplinary (c) Pragmatic in Nature (d) All of the above 2. Which branch of economic theory deals with allocation of resources: (a) Macro economic (b) Micro economic (c) Economic Growth (d) None of these 3. Under which system Freedom of choice is an advantage:- (a) Capitalism (b) Mixed economy (c) Socialism (d) None of these 4. Taxation involves which aspects of normative economics: (a) Incidence (b) Fairness (c) Incentive to work (d) All of the above 5. Suppose we are drawing a supply curve of a farmer which of the following will be held constant. : (a) Price of Inputs (b) Weather Conditions (c) Technology (d) The price of the Commodity under consideration 6. A fall in the price of a commodity where everything else is held constant is referred to as: (a) An increase in quantity demand (b) A decrease in demand (c) An increase in demand (d) None of these 2 7. For Giffen good the Engel curve is: (a) Positive sloped (b) Vertical (c) horizontal (d) Negative sloped 8. A theory is : (a) An assumption (b) A hypothesis (c) A validated hypothesis (d) None of these 9. The Coefficient of Price elasticity of demand between two points on a demand curve is _____ (a) Arc elasticity (b) Point elasticity (c) Price elasticity (d) None of these 10. When the demand curve is a rectangular hyperbola an increase in the price of the commodity causes the total expenditure of consumers of the commodity to: (a) Remain unchanged (b) Increase (c) Decrease (d) Any of the above 11. A movement along a curve rather than a shift in the curve can be measured by:- (a) Cross elasticity of demand (b) Income elasticity of demand (c) Price elasticity of demand & Price elasticity of Supply (d) None of these 12. The most important function of an entrepreneur is to _________ (a) Bear the sense of responsibility (b) Finance (c) Innovate (d) None of these 13. How do the TVC curve behaves when the law of diminishing return begins to operate- (a) Rise at a decreasing rate (b) Fall at an increasing rate (c) Fall at a decreasing rate (d) Rise at an increasing rate 14. In the Short run level of output the firm at the optimum will be: (a) Minimizing total losses Page 3 1 MOCK TEST PAPER 1 FOUNDATION COURSE PAPER 4: BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE PART- I: BUSINESS ECONOMICS QUESTIONS 1. Which of the following are the characteristics of Business Economics: (a) It is a normative Science (b) It is inter disciplinary (c) Pragmatic in Nature (d) All of the above 2. Which branch of economic theory deals with allocation of resources: (a) Macro economic (b) Micro economic (c) Economic Growth (d) None of these 3. Under which system Freedom of choice is an advantage:- (a) Capitalism (b) Mixed economy (c) Socialism (d) None of these 4. Taxation involves which aspects of normative economics: (a) Incidence (b) Fairness (c) Incentive to work (d) All of the above 5. Suppose we are drawing a supply curve of a farmer which of the following will be held constant. : (a) Price of Inputs (b) Weather Conditions (c) Technology (d) The price of the Commodity under consideration 6. A fall in the price of a commodity where everything else is held constant is referred to as: (a) An increase in quantity demand (b) A decrease in demand (c) An increase in demand (d) None of these 2 7. For Giffen good the Engel curve is: (a) Positive sloped (b) Vertical (c) horizontal (d) Negative sloped 8. A theory is : (a) An assumption (b) A hypothesis (c) A validated hypothesis (d) None of these 9. The Coefficient of Price elasticity of demand between two points on a demand curve is _____ (a) Arc elasticity (b) Point elasticity (c) Price elasticity (d) None of these 10. When the demand curve is a rectangular hyperbola an increase in the price of the commodity causes the total expenditure of consumers of the commodity to: (a) Remain unchanged (b) Increase (c) Decrease (d) Any of the above 11. A movement along a curve rather than a shift in the curve can be measured by:- (a) Cross elasticity of demand (b) Income elasticity of demand (c) Price elasticity of demand & Price elasticity of Supply (d) None of these 12. The most important function of an entrepreneur is to _________ (a) Bear the sense of responsibility (b) Finance (c) Innovate (d) None of these 13. How do the TVC curve behaves when the law of diminishing return begins to operate- (a) Rise at a decreasing rate (b) Fall at an increasing rate (c) Fall at a decreasing rate (d) Rise at an increasing rate 14. In the Short run level of output the firm at the optimum will be: (a) Minimizing total losses 3 (b) Maximizing total profit (c) Either maximizing total profit or minimizing total losses (d) None of these 15. If both factor prices and quantity moves in the same direction then it is called _______ (a) Decreasing Cost Industry (b) Increasing Cost Industry (c) Constant Cost Industry (d) None of these 16. If the monopolist incur losses in the short run then in the long run: (a) It will stay in the business (b) Go out of business (c) Will break even (d) Any of the above is possible 17. A cartel which is market sharing will reach the monopoly situation : (a) Always when the product is homogenous (b) Always when the product is differentiated (c) Sometime (d) None of these 18. The Substitution effect will be stronger when- (a) The goods are closer substitutes (b) There is lower cost of switching to the substitute good (c) There is lower inconvenience while switching to the substitute good. (d) All of these 19. Increasing return to scale applies to: (a) Long run (b) Short run (c) Either (a) or (b) (d) None of these 20. Isoquant are also called: (a) Equal product curves (b) Production Indifference curves (c) ISO product curves (d) All of the above 21. Who describes production function as the relationship between the maximum amount of output can b e produced and the input required to make that output : (a) Samuelson (b) Malthas (c) Hicks Page 4 1 MOCK TEST PAPER 1 FOUNDATION COURSE PAPER 4: BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE PART- I: BUSINESS ECONOMICS QUESTIONS 1. Which of the following are the characteristics of Business Economics: (a) It is a normative Science (b) It is inter disciplinary (c) Pragmatic in Nature (d) All of the above 2. Which branch of economic theory deals with allocation of resources: (a) Macro economic (b) Micro economic (c) Economic Growth (d) None of these 3. Under which system Freedom of choice is an advantage:- (a) Capitalism (b) Mixed economy (c) Socialism (d) None of these 4. Taxation involves which aspects of normative economics: (a) Incidence (b) Fairness (c) Incentive to work (d) All of the above 5. Suppose we are drawing a supply curve of a farmer which of the following will be held constant. : (a) Price of Inputs (b) Weather Conditions (c) Technology (d) The price of the Commodity under consideration 6. A fall in the price of a commodity where everything else is held constant is referred to as: (a) An increase in quantity demand (b) A decrease in demand (c) An increase in demand (d) None of these 2 7. For Giffen good the Engel curve is: (a) Positive sloped (b) Vertical (c) horizontal (d) Negative sloped 8. A theory is : (a) An assumption (b) A hypothesis (c) A validated hypothesis (d) None of these 9. The Coefficient of Price elasticity of demand between two points on a demand curve is _____ (a) Arc elasticity (b) Point elasticity (c) Price elasticity (d) None of these 10. When the demand curve is a rectangular hyperbola an increase in the price of the commodity causes the total expenditure of consumers of the commodity to: (a) Remain unchanged (b) Increase (c) Decrease (d) Any of the above 11. A movement along a curve rather than a shift in the curve can be measured by:- (a) Cross elasticity of demand (b) Income elasticity of demand (c) Price elasticity of demand & Price elasticity of Supply (d) None of these 12. The most important function of an entrepreneur is to _________ (a) Bear the sense of responsibility (b) Finance (c) Innovate (d) None of these 13. How do the TVC curve behaves when the law of diminishing return begins to operate- (a) Rise at a decreasing rate (b) Fall at an increasing rate (c) Fall at a decreasing rate (d) Rise at an increasing rate 14. In the Short run level of output the firm at the optimum will be: (a) Minimizing total losses 3 (b) Maximizing total profit (c) Either maximizing total profit or minimizing total losses (d) None of these 15. If both factor prices and quantity moves in the same direction then it is called _______ (a) Decreasing Cost Industry (b) Increasing Cost Industry (c) Constant Cost Industry (d) None of these 16. If the monopolist incur losses in the short run then in the long run: (a) It will stay in the business (b) Go out of business (c) Will break even (d) Any of the above is possible 17. A cartel which is market sharing will reach the monopoly situation : (a) Always when the product is homogenous (b) Always when the product is differentiated (c) Sometime (d) None of these 18. The Substitution effect will be stronger when- (a) The goods are closer substitutes (b) There is lower cost of switching to the substitute good (c) There is lower inconvenience while switching to the substitute good. (d) All of these 19. Increasing return to scale applies to: (a) Long run (b) Short run (c) Either (a) or (b) (d) None of these 20. Isoquant are also called: (a) Equal product curves (b) Production Indifference curves (c) ISO product curves (d) All of the above 21. Who describes production function as the relationship between the maximum amount of output can b e produced and the input required to make that output : (a) Samuelson (b) Malthas (c) Hicks 4 (d) None of these 22. The concept of marginal cost is closely related with- (a) Variable Cost (b) Fixed Cost (c) Opportunity Cost (d) Economic Cost 23. When the average product of labour is maximized the marginal product of labour: (a) Equal zero (b) is maximized (c) Equal AP L (d) None of these 24. ‘Time’ element in market was conceived by : (a) Alfred Marshall (b) Pigou (c) Allen (d) None of these 25. Cross elasticity of demand for the monopolist’s product or any other product is _______ (a) Zero (b) Very small (c) High (d) Either (a) or (b) 26. In a monopolistically competitive market: (a) Firm face a perfectly elastic demand for its product (b) Does not face a perfectly elastic demand for its product (c) Cannot be determined (d) None of these 27. Price discrimination to be profitable elasticity of demand in different sub market will be _____ (a) Different (b) Uniform (c) Zero (d) None of these 28. Supply Schedule in a purely competitive firm in the short run is determined by : (a) Marginal revenue (b) Average revenue (c) Marginal cost curve (d) None of these 29. The Turning point of business cycle is predicted by : (a) Lagging Indictor Page 5 1 MOCK TEST PAPER 1 FOUNDATION COURSE PAPER 4: BUSINESS ECONOMICS AND BUSINESS AND COMMERCIAL KNOWLEDGE PART- I: BUSINESS ECONOMICS QUESTIONS 1. Which of the following are the characteristics of Business Economics: (a) It is a normative Science (b) It is inter disciplinary (c) Pragmatic in Nature (d) All of the above 2. Which branch of economic theory deals with allocation of resources: (a) Macro economic (b) Micro economic (c) Economic Growth (d) None of these 3. Under which system Freedom of choice is an advantage:- (a) Capitalism (b) Mixed economy (c) Socialism (d) None of these 4. Taxation involves which aspects of normative economics: (a) Incidence (b) Fairness (c) Incentive to work (d) All of the above 5. Suppose we are drawing a supply curve of a farmer which of the following will be held constant. : (a) Price of Inputs (b) Weather Conditions (c) Technology (d) The price of the Commodity under consideration 6. A fall in the price of a commodity where everything else is held constant is referred to as: (a) An increase in quantity demand (b) A decrease in demand (c) An increase in demand (d) None of these 2 7. For Giffen good the Engel curve is: (a) Positive sloped (b) Vertical (c) horizontal (d) Negative sloped 8. A theory is : (a) An assumption (b) A hypothesis (c) A validated hypothesis (d) None of these 9. The Coefficient of Price elasticity of demand between two points on a demand curve is _____ (a) Arc elasticity (b) Point elasticity (c) Price elasticity (d) None of these 10. When the demand curve is a rectangular hyperbola an increase in the price of the commodity causes the total expenditure of consumers of the commodity to: (a) Remain unchanged (b) Increase (c) Decrease (d) Any of the above 11. A movement along a curve rather than a shift in the curve can be measured by:- (a) Cross elasticity of demand (b) Income elasticity of demand (c) Price elasticity of demand & Price elasticity of Supply (d) None of these 12. The most important function of an entrepreneur is to _________ (a) Bear the sense of responsibility (b) Finance (c) Innovate (d) None of these 13. How do the TVC curve behaves when the law of diminishing return begins to operate- (a) Rise at a decreasing rate (b) Fall at an increasing rate (c) Fall at a decreasing rate (d) Rise at an increasing rate 14. In the Short run level of output the firm at the optimum will be: (a) Minimizing total losses 3 (b) Maximizing total profit (c) Either maximizing total profit or minimizing total losses (d) None of these 15. If both factor prices and quantity moves in the same direction then it is called _______ (a) Decreasing Cost Industry (b) Increasing Cost Industry (c) Constant Cost Industry (d) None of these 16. If the monopolist incur losses in the short run then in the long run: (a) It will stay in the business (b) Go out of business (c) Will break even (d) Any of the above is possible 17. A cartel which is market sharing will reach the monopoly situation : (a) Always when the product is homogenous (b) Always when the product is differentiated (c) Sometime (d) None of these 18. The Substitution effect will be stronger when- (a) The goods are closer substitutes (b) There is lower cost of switching to the substitute good (c) There is lower inconvenience while switching to the substitute good. (d) All of these 19. Increasing return to scale applies to: (a) Long run (b) Short run (c) Either (a) or (b) (d) None of these 20. Isoquant are also called: (a) Equal product curves (b) Production Indifference curves (c) ISO product curves (d) All of the above 21. Who describes production function as the relationship between the maximum amount of output can b e produced and the input required to make that output : (a) Samuelson (b) Malthas (c) Hicks 4 (d) None of these 22. The concept of marginal cost is closely related with- (a) Variable Cost (b) Fixed Cost (c) Opportunity Cost (d) Economic Cost 23. When the average product of labour is maximized the marginal product of labour: (a) Equal zero (b) is maximized (c) Equal AP L (d) None of these 24. ‘Time’ element in market was conceived by : (a) Alfred Marshall (b) Pigou (c) Allen (d) None of these 25. Cross elasticity of demand for the monopolist’s product or any other product is _______ (a) Zero (b) Very small (c) High (d) Either (a) or (b) 26. In a monopolistically competitive market: (a) Firm face a perfectly elastic demand for its product (b) Does not face a perfectly elastic demand for its product (c) Cannot be determined (d) None of these 27. Price discrimination to be profitable elasticity of demand in different sub market will be _____ (a) Different (b) Uniform (c) Zero (d) None of these 28. Supply Schedule in a purely competitive firm in the short run is determined by : (a) Marginal revenue (b) Average revenue (c) Marginal cost curve (d) None of these 29. The Turning point of business cycle is predicted by : (a) Lagging Indictor 5 (b) Leading Indicator (c) Coincident (d) All of the above 30. Fluctuation in Economic activities are due to : (a) Change in money supply (b) Profitability (c) Fluctuation in aggregate demand (d) None of these 31. Between two perfect substitute the elasticity of Substitution is ______ (a) < Zero (b) >Zero (c) < Infinity (d) Infinity 32. Variable that change after real output change are: (a) Leading Indicator (b) Lagging Indicator (c) Concurrent Indicator (d) None of these 33. Modern business activities are based on the anticipations of business community and are affected by waves of optimism or pessimism is opined by___ (a) Pigou (b) Keynes (c) Hawtrey (d) None of these 34. Businesses whose fortunes are closely linked to the rate of economic growth is referred to as : (a) Cyclical (b) Counter Cyclical (c) Fiscal Policy (d) None of these 35. The Concept of Price rigidity in market is explained in which form of market: (a) Monopolistic Market (b) Perfect Competition (c) Oligopoly (d) Monopoly 36. Globalization indicate rapid ___ between Countries : (a) Competition (b) Investment (c) IntegrationRead More
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1. What is the importance of studying Business Economics and Business & Commercial Knowledge for the CA Foundation exam? |
2. What are some key topics covered in the Business Economics and Business & Commercial Knowledge paper of the CA Foundation exam? |
3. How can I prepare effectively for the Business Economics and Business & Commercial Knowledge paper in the CA Foundation exam? |
4. Is it necessary to have prior knowledge of economics and commerce to excel in the Business Economics and Business & Commercial Knowledge paper of the CA Foundation exam? |
5. How can studying Business Economics and Business & Commercial Knowledge contribute to my future career in the field of commerce? |
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