10 Questions
When was the Institute of Chartered Accountants of India (ICAI) established?
1 July 1949
Which body is responsible for setting the Standards on Auditing (SAs) in India?
The National Financial Reporting Authority (NFRA)
What does the term 'chartered' refer to in 'ICAI Chartered Accountants'?
Membership status
Which ministry has administrative control over the Institute of Chartered Accountants of India (ICAI)?
Ministry of Corporate Affairs
Which act established the Institute of Chartered Accountants of India (ICAI) as a statutory body?
Chartered Accountants Act, 1949
What does a price elasticity of -2 indicate?
A one percent price rise leads to a two percent decline in quantity demanded
What does the phrase 'more elastic' mean in the context of price elasticity?
The elasticity has greater magnitude, ignoring the sign
Under what conditions are price elasticities positive?
In special cases
What does the income elasticity of demand measure?
How the quantity demanded changes with consumer income changes
What do Veblen and Giffen goods belong to?
Two classes of goods
Study Notes
Institute of Chartered Accountants of India (ICAI)
- Established in 1949
- Responsible for setting the Standards on Auditing (SAs) in India
- The term 'chartered' refers to a royal charter or a government license, indicating that the Institute has been granted a special status
- Under the administrative control of the Ministry of Corporate Affairs
Price Elasticity
- A price elasticity of -2 indicates that for every 1% change in price, the quantity demanded changes by 2%
- The phrase 'more elastic' means that a small change in price leads to a large change in quantity demanded
- Price elasticities are positive under normal conditions, meaning that an increase in price leads to a decrease in quantity demanded
Income Elasticity of Demand
- Measures the responsiveness of quantity demanded to a change in consumer income
- Reveals how much the quantity demanded changes in response to a 1% change in income
Special Types of Goods
- Veblen and Giffen goods belong to a special category of goods that do not follow the law of demand, meaning that an increase in price leads to an increase in quantity demanded
Test your knowledge of the Institute of Chartered Accountants of India (ICAI) with this quiz. Explore the history, functions, and significance of ICAI in promoting and regulating the profession of Chartered Accountancy in India.
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