CA Foundation Economics Module Multiple Choice Questions PDF

CAFOUNDATION El JK.SHAH CLAS S E S QUESTIONS a Veranda Enterprise CHOICE MODULE MULTIPLE...

CAFOUNDATION El JK.SHAH CLAS S E S QUESTIONS a Veranda Enterprise CHOICE MODULE MULTIPLE determinedby resourcesis C o allocation of 1. In a free market economy the Votingdone by the consumers Acentral planning authority C. Consumer preference The level of profits of firms means of allocation the principal Acapitalist economy uses resources. a. Demand b. Supply C. efficiency prices using Which of the following is considered as a disadvantage of allocating resources the market system? a. Income will tend to be unevenly distributed b People do not get goods of their choice. Men of initiative and enterprise are not rewarded. d. Profits will tend to be low. 4 Which of the following statements does not a. Firms decide whom to hire and apply to a market economy? what to produce. b. Firms aim at maximizing profits. C. Households decide which firms to work d. Government policies are the primary for and what to buy with their households. forces that guide the incomes. 5 in a mixed decisions of firms and economy a. All economic decisions are taken by b. All economic decisions are the C taken Economic decisions are partly by central authority. d entrepreneurs. None of the above takenprivate by entrepreneurs. partly by the state and the private  a Veranda Enterprise 6. The central problem in economics is that of economies. Comparing the success of commnand versus market b. Guaranteeing the production occurs in the most efficient manners. C. Guaranteeing a minimumn level of income for every citizen. society's unlimited needs or d Allocating scares resources in such a mnanner that wants are satisfied in the best possible manner. 7. Capital intensive technique would get chosen in a a. Labour surplus economy where the relative price of capital is lower. lower. b. Capital surplus economy where the relative price of capital is C. Developed economy where technology is better. d. Developing economy where technology is poor. study of economic: 8. Which of the following is not one of the four central questions that the is supported to answer? a. Who produce what? b. When are goods produced? C. Who consume what? d. Howare goods produced? 9. Large production of goods would lead to higher production in future? a. Consumer goods b. Capital goods C. Agriculturalgoods d. Public goods 10. The economicsystem in which all the means of production are owned and controlled private individuals for profit. a. Socialism b. Capitalism C. Mixed economy d. Communism 11. Macro Economics is the study of a. Allaspects of scarcity b. The national economy and the global economy as a whole. C. Big business d. The decisions of individual businesses and people.  a Vranda Enterprise 12. Freedom of choice is the advantage of a. Socialism b. Capitalism above None of the C. Communism d. 13. Exploitation and inequality are minimal under: a. Socialism b. Capitalism d. None of the above C. Mixed economy 14. Administered price refer to: demand and supply. a. Price determined by the forces of b. Prices determined by sellers in the market governmer C. Prices determined by an external authority which is usually the d. None of the above  ADDITIONAL MCQ'S FOR PRACTICE most closely connected with the word 1. The meaning of the word "economic" is Unlimited d. Restricte a. Extravagant b. Scarce C. 2. In economics, the central economic problem' means would wish a. Consumers do not have as much money as they b. there will always be a certain level of unemployment way C. resource are not always allocated in an optimum availability of resources d. output is restricted to the limited India? 3. Which of the following suggests a micro approach for in India a. identifying the cause of large scale unemployment b. input output analysis for the economy C. finding causes of high turnover in AB ltd d. analysing distribution of coal in the country 4. State whether Economics is_ a. a positive science only b. neither a positive nor normative science C. a science but not art or an art depending on who uses economics and for what purpose d. ascience of the following refers to the macro approach from a national angle 5. State which a. unemployment among the educated people in India b. profitability ratio of bharat heavy electricals Limited C. turnover ratio in Telco d. none of the above to their causes and 6. Economic explains economic phenomena according effects positive b. normative a. C. empirical d. applied  CA FOUNDATTON FCONG JK. SHAH a tanda Enterprise maximum in State interference is mixed economy sociatist economy a. capitalist economy d. none of the above i 8. Scarcity can be avoided by making needs unlimited b. wants untinited resource limited d. wants and needs tirmited 9. Every economy is characterized by a. unlimited wants and needs b. no energy resources C. unlimited material resources d. abundant productive labour 10. Economics who are concerned about the behavior of individual households, firms, and industries are studying microeconomics b. macroeconomics C. nanoeconomics d. neo economics 11. Reasoning proceeds from particular to generatunder a. deductive method b. inductive method C conclusive method d. none of the above 12. A normative economics statement is a. the federal minimum wages should be raised to $4.50 per hour b. economic is a social science that studies human behavior C. economics is not a social science that studies human behavior d. the united states spends a$ 1 trillion on national defence 13. Which one of the following is NOT a feature of mixed economy? market forces deciding investment and consumption b. reservation of certain areas for publicsector investment C. emphasis on social legislation d. strong anti-monopoly legislation 14. Opportunity costs are result of a. scarcity b Overproduction technology obsolescence d. abundance of resources 24  a Veranda Enterprise 15. The aim of an entrepreneur is to earn as much profit as possible. The entrepreneur belongs to socialist economy b. capitalist economy mixed economy all of the above 16. In which type of economy gives do consumers and producers make their choices base on the market forces of demand and supply? open economy b. controlled economy C. command economy d. market economy 17. Monopolyof state on production and investment is feature of a. mixed economy b. socialist economy C. capitalist economy d. none of the above 18. is also known as price theory a. microeconomics b. macroeconomics C. both of above d. none of above KQris 19. Which of the following statements regarding market economy is not true? d. price plays a major role in a market economy b. the government controls production and distribution of goods C. consumers choose the goods they want d. efficiency is achieved through the profit motive 20. Scarcity definition of Economics id given by - a. Alfred Marshall b. Samuelson C. Robinson d. Adam smith given by: 21. The definition "Science which deals with wealth of Nation" was a. Alfred Marshall b. AC Pigou C. Adam Smith d. JB Say economy? 22. Which of the following is not of the features of capitalist d. Right of private property b. Freedom of choice by the consumers C. No profit, No Loss motive. d. Competition 25  J.K. SHAH CL AS S ES CA FOUNDATION- ECONOMICS a Vekanda Enterprise 23. There is need of economic study, becatse - a. The resources are limited b The wants are unlimited The resources are unlimited d Both a and b 24. The benefit of economic study is a. Iit ensure that allproblems will be appropriately tackled b. It helps in identifying problems C. It enable to examine a problem in its right perspective d. It gives exact solutions to every problem 25. The managerial economics - a. Is Applied Economics that fills the gap between economic theory and busines practice b It is a theory concept C. Trains managers how to behave in recession d. Provides the tools which explain various concepts. 26. Which of the following statements is correct? a. Micro economics is important for study of a particular firm household and a particular b. Macro economics is important for study of economic C. None of the above conditions of a country d. Both a and b 27. Mr. Satish hired a business consultant to quide him for qrowth of his business. The consultant visited him factory and suggested some changes with respect to Stan appointment, loan availability and so on. Which approach is that consultant using? Micro economics b Marco economics C. None of the above d. Both a and b  ICS 29. 28. CL Enterprise Veranda a (c) (a) (c) SHAH J.K. (a)Profit AS economy Mixed Socialist Socialism economy Mixed motive S E S is is also a merit called of (d) (b) as (d) (b) command Capitalist None Capitalism None of of the economy the above above FOUNDATION-ECONOMICS CA