MCQ for CA Foundation ECONOMICS - PART 2 - BUSINESS AND COMMERCIAL KNOWLEDGE - Chapter 4 GOVERNMENT POLICIES FOR BUSINESS GROWTH

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 4 - Business Economics and Business and Commercial Knowledge - PART 2 - BUSINESS AND COMMERCIAL KNOWLEDGE - Chapter 4: GOVERNMENT POLICIES FOR BUSINESS GROWTH - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1 Following statements pertain to the meaning, importance and impact of economic policies. These statements are either correct or incorrect. Pick up the answer option that gets it all right.
i. Macroeconomic policies operate only on the demand side of the economy.
ii. The impact transmission of the policies occurs through institutions and policy instruments.
iii. Policy formulation does not involve discussion with the stakeholders.
iv. The impact of Sectoral policies is on the economy as a whole.

  1. i-Correct; ii-Correct iii-Correct; iv-Incorrect
  2. i - Incorrect; ii - Correct; iii-Incorrect; iv-Incorrect
  3. i - Incorrect; ii - Incorrect; iii - Correct; iv - Incorrect
  4. i - Correct; ii - Correct; iii - Incorrect; iv - Incorrect

Answer: 2

Q:2 FDI in sectors / activities which do not require any prior approval either of the Government or the Reserve Bank of India is identified as: 

  1. Green Channel
  2. Priority route
  3. Non-Commercial Route
  4. Automatic Route

Answer: 4

Q:3 Sale of 50% stake in a PSU to a single private sector company is an example of: 

  1. Displacement of stake
  2. Decentralization of Authority
  3. Delegation of stake
  4. Disinvestment to form a Joint Venture

Answer: 4

Q:4 Choose the correct answer from among the combinations given below the following table
Macro Economic Variable Desired Direction for Conduciveness
(a) Tax Rate            (i) Higher the better
(b) GDP                   (ii) Moderately Higher the Better
(c) Inflation              (iii) Lower the Better 

  1. (a)-(iii); (b)- (i): (c) - (ii)
  2. (a) - (iii); (b) - (ii); (c) - (iii)
  3. (a) - (i); (b) - (ii); (c) - (iii)
  4. Either a. or b.

Answer: 1

Q:5 Which of the following is the overarching, all inclusive assumption while assessing the conduciveness of the macro variables for business? 

  1. Corresponding conduciveness of politico-legal and socio-cultural institutions
  2. Given other things constant
  3. Time-lag
  4. Non retaliatory/ compensatory adjustment neutralising a particular impact

Answer: 2

 

CA Foundation ECONOMICS - PART 2 - BUSINESS AND COMMERCIAL KNOWLEDGE - MCQ for Chapter 5 - Click Here

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