NATIONAL MANAGEMENT COLLEGE – THUDUPATHI
CA FOUNDATION BATCH – 2021-22
BUSINESS ECONOMICS AND BCK
TEST: R.T.1 CH.1 – 15/03/2022
TIME: 30 MINUTES
MARK: 25
1.Find the odd one out ….?
Product pricing
Consumer behaviour c. Factor pricing d. The
general price level
2.The Agriculturists suggests ways to increase Farmer’s Income. This is concerned
with…..?
Positive Science
Theoretical c. Normative Science d. None of these
3.Business Economics incorporates tools from the following
discipline/disciplines……?
Mathematics b. Operations Research
Management Theory
All of these
4.Profit motive is the driving force in a …….?
Free Enterprise Economy
Socialist Economy
Mixed
Economy
None of these
5.A study of how increases in the corporate income tax rate will affect the national
unemployment rate is an example of …….?
Macro-Economics
Descriptive Economics
Micro-Economics d.
Normative Economics
6.Macroeconomics is also called …… economics?
Applied
Aggregate c. Experimental
none of these
7.A capitalist economy uses ……. as the principal means of allocating resources?
Demand
Supply
Efficiency d. Prices
8.Macro Economics is the study of …….?
all aspects of scarcity
the national economy and the global economy as a whole
big businesses
the decisions of individual businesses and people
9.Which of the following is an economic activity?
Sale of goods to consumers
Teaching one’s own nephew at home
A Housewife doing household duties
Watching Television
10.Which of the following is the best general definition of the study of Economics?
Inflation and Unemployment in a growing economy
Business decision-making under foreign competition
Individual and Social Choice in the face of scarcity
The best way to invest in the stock market
11.An economy can spend all its present resources on current consumption only?
True b. False
Partly True d. Cannot be commented at all
12.Production of Wheat vs Rice relates to the problem of –
What to Produce
How to Produce
For whom to Produce
How to provide for growthPage 2 of 2
13.Freedom of choice is an advantage of:
Capitalist Economy b. Mixed Economy c. Socialist Economy d.
Communist Economy
14.The central problems arise in case of –
Capitalist Economies b. Socialist Economies
Mixed Economies d.
All of these
15.In deciding “How to Produce”, the economy should consider –
Capital Intensive Techniques
Labour Intensive Techniques
Both a and b
Neither a nor b
16.In a Mixed Economy, there are ……. sectors of Industries?
One b. Two c. Three
None
17.Economics is a science because
Systematised study b. Scientific laws c. Has its own methodology d. All of
these
18.Positive statements concern what is; normative statements concern
What was b. What is the normal situation c. What will be d. What ought to be
19.Business Economics is generally ________ in nature?
Normative b. positive c. neutral d. descriptive
20.All of the following are within the scope of Business Economics except _____?
Capital Budgeting b. Risk Analysis c. Business Cycles d. Accounting
Standards
21.In a competitive economy, the uncrowned king is –
Government b. Producer c. Consumer d. Seller
22.Micro economics does not cover –
Consumer behaviour b. Factor Pricing c. General price level d. Product
Pricing
23.Both private and public sectors exist side by side in –
China b. U.S.A c. India d. Russia
24.In a socialist economy, the basic force of economic activity is profit. This
statement is –
Correct b. Incorrect c. Partially correct d. None of these
25.Framing suitable policies to solve inequalities of income denotes that economics
is –
A science b. an art c. both a science and an art d. neither science nor an art
** All the best
