Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 4 - Business Economics and Business and Commercial Knowledge - PART 1 - BUSINESS  ECONOMICS - Chapter 1: BUSINESS ECONOMICS - NATURE & SCOPE - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1 Business Economics is

  1. Abstract and applies the tools of Microeconomics.
  2. Involves practical application of economic theory in business decision making.
  3. Incorporates tools from multiple disciplines.
  4. (b) and (c) above.

Answer: 4

Q:2 Ram: My corn harvest this year is poor.
Krishan: Don't worry. Price increases will compensate for the fall in quantity supplied.
Vinod: Climate affects crop yields. Some years are bad, others are good.
Madhu: The Government ought to guarantee that our income will not fll.
In this conversation, the normative statement is made by

  1. Ram
  2. Krishan
  3. Vinod
  4. Madhu

Answer: 4

Q:3 A capitalist economy uses __________________ as the principal means of allocating resources.

  1. demand
  2. Supply
  3. Efficiency
  4. prices

Answer: 4

Q:4 Scarcity definition of Economics is given by-

  1. Alfred Marshall
  2. Samuelson
  3. Robinson
  4. Adam Smith

Answer: 3

Q:5 Mr. Satish hired a business consultant to guide him for growth of his business. The consultant visited his factory and suggested some changes with respect to staff appointment, loan availability and so on.
Which approach is that consultant using?

  1. Micro economics
  2. Macro economics
  3. None of the above
  4. Both a and b

Answer: 1


CA Foundation ECONOMICS - PART 1 - BUSINESS ECONOMICS - MCQ for Chapter 2 - Click Here

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