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Eco Test 1

The document is a practice test for a Business Economics exam that covers topics like the nature, scope, basic problems, and role of price mechanisms in business economics. It contains 50 multiple choice questions testing concepts like microeconomics, macroeconomics, different economic systems (capitalism, socialism, mixed economies), scarcity, and the central problems of economics. Business economics integrates economic theory with business practice in a pragmatic way to tackle real-world business problems.

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Pushkar
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175 views4 pages

Eco Test 1

The document is a practice test for a Business Economics exam that covers topics like the nature, scope, basic problems, and role of price mechanisms in business economics. It contains 50 multiple choice questions testing concepts like microeconomics, macroeconomics, different economic systems (capitalism, socialism, mixed economies), scarcity, and the central problems of economics. Business economics integrates economic theory with business practice in a pragmatic way to tackle real-world business problems.

Uploaded by

Pushkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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RAHUL’S CA ACADEMY

Business Economics – Test No - 1


Topic Covered: Introduction to Business Economics Nature, Scope,
Basic Problems and Role of Price Mechanism

1. Business Economics applies economic tools in the process of


(a) Decision making (b) Allocation of resources (c) Micro aspects (d) Macro Aspects

2. Who defined Business economics as the use of economic analysis in the formulation of business policies.
(a) Marshall (b) Joel Dean (c) Robinson (d) Keynes

3. Business Economics is essentially a component of applied economics as it includes application of selected quantitative
techniques. Which technique is not included in it?
(a) cost analysis (b) break even analysis (c)Economic analysis (d) linear programming

4. Economics today not only deals with scarce resources and their allocation but management of
(a) Prices (b)Fluctuations (c) Capital (d) Savings

5. Business Economics integrates


(a) Economic theory with business practice (b) Society and economic theory
(c) Business and politics (d) Business Economics and Social Sciences

6. Which among the following is not a part of business Economics?


(a)Accounting Standards (b) Capital Budgeting (c)Business Cycles (d) Risk Analysis

7. Micro Economics was popularized by


(a) Joel Dean (b) Alfred Marshall (c) Schumpeter (d) Benham

8. The level of employment and rate of economic growth


(a) Growth Concepts (b) Macro Concepts (c) Micro Concepts (d) Planning Concepts

9. Other things remaining constant – Its equivalent in Latin is


(a)Vis-a-vis (b) Ceteris Paribus (c) Sine qua non (d) Laissez Faire

10. Macro Economics was popularized by


(a) M. Keynes (b) Joel Dean (c) Alfred Marshall (d) Schumpeter

11. Location of industry is studied included under


(a) Micro Economics (b) Macro Economics (c) Managerial Economics (d) Business Economics

12. Business Economics is pragmatic in its approach as it tackles business problems


(a) Practically (b) Methodically (c) Scientifically (d) Systematically

13. Identify the normative sentence.


(a) Robins definition is accepted universally (b) Samuelsson’s is the most superior definition.
(c) Welfare is superior to the Wealth definition. (d) Smith should have emphasized less on wealth.

14. Goods which satisfy human wants indirectly


(a)Consumption Goods (b)Personal Goods (c) Impersonal Goods (d)Producer Goods

CA. Surabhi Kacholia Page 1


RAHUL’S CA ACADEMY

15. The concept of Command Economy was profounded by


(a) Karl Marx (b)Bohm Bewerk (c) Marshall (d)Benham

16. ____________ economics explain economic phenomenon according to their cause and effects.
(a) Applied (b) Empirical (c) Positive (d) Normative

17. A capital surplus country uses which technology?


(a) Capital –intensive (b) Labour-intensive (c) Both (d) Neither

18. Co-existence of Public and private sector is the feature of which economy
(a) Capitalist (b) Socialist (c) Mixed (d) Command

19. Absence of consumer choice is a feature of ____________


(a) Socialism (b) Capitalism (c) Mixed (d) Both a and b

20. Which is the heart of capitalism?


(a) Profit (b) Price (c) Private Property (d) Competition

21. Spot the odd one out.


(a) Factor pricing (b) Balance of trade. (C) Money (d) National Income

22. Due to recession, employment rate and output


(a)Rises ; rises (b)Rises ; falls (c)Falls; rises (d)Falls ; falls

23. What “ ought to be” Is studied under


(a) Micro (b) Macro (c) Positive (d) Normative

24. The economic system in which the government has complete control over the prices
(a) Market (b)Mixed Economy (c) Command economy (d) Regulated economy

25. Inequalities is the demerit of


(a) Free Market Economy (b)Mixed Economy (c) Command economy (d) Regulated economy

26. Indian economy is a


(a) Market (b) Mixed Economy (c) Command economy (d) Regulated economy

27. Macro-Economics is also called


(a) Applied Economics (b) Experimental Economics
(c) Aggregate Economics (d) None of the above

28. In a mixed economy there are _________ sector of industries


(a) Three (b) Two (c) Four (d) Five

29. Economics concerned with welfare propositions is called


(a) Socialist economics (b) Normative Economics
(c) Positive Economics (d) Capitalistic economics

30. Scarcity Definition in economics is given by


(a)Robbins (b) J B Say (c) Adams smith (d) Samuelson.

CA. Surabhi Kacholia Page 2


RAHUL’S CA ACADEMY

31. In which economy, all economic decisions are guided by self-interest and price mechanism?
(a) Command Economy (b) Laissez Faire (c) Planned Economy (d) Classless Economy

32. Socialist Economy is also called


(a) Command Economy (b) Laissez Faire (c) Free market Economy (d) Perfectly Competitive Economy

33. Identify the Micro Economic aspect


(a) The type of economic system (b) The stage of business cycle
(c) Trends in national income, employment, saving, investment and pricing (d) Risk and uncertainty analysis

34. Identify the Macro Economic aspect


(a) Resource allocation (b) Demand forecasting (c) Inventory Management (d) Business Cycles

35. Micro Economics is applied to


(a) External issues (b) Operational issues (c) Environmental issues (d) None

36. Predicting the future demand based on past consumer behavior is


(a) Supply function (b) Demand function (c) Demand Schedule (d) Demand Forecasting

37. Proper allocation of funds forms the subject matter of


(a) Micro (b) Macro (c) Deductive (d) Inductive

38. Administered prices refer to


(a) Prices determined by demand and supply (b) Price determined by market economy
(c) Prices determined by external forces like government (d) Prices at the ration shops

39. Exploitation and inequality are minimal under


(a) Capitalism (b) Socialism (c) Mixed Economy (d) Free market economy

40. Freedom of choice is the advantage of


(a) Capitalism (b) Socialism (c) Mixed Economy (d) Command economy

41. The economic system which has both profit and welfare as its goals
(a) Capitalism (b) Socialism (c) Mixed Economy (d) Free market economy

42. Which of the following statements is incorrect


(a) Business Economics is normative in nature (b) Business Economics has close connections with Statistics
(c) Business economist need not worry about Micro economic variables
(d) Business Economics is also called Managerial Economics

43. Larger production of which goods lead to higher production in future


(a) Consumer Goods (b) Capital Goods (c) Agricultural Goods (d) Public Goods

44. The central problem of Economics is


(a) Optimum production
(b) Command versus market economies
(c) Allocating the scarce resources such that society’s unlimited wants are satisfied in the best possible manner
(d) Guaranteeing a minimum standard for citizens

CA. Surabhi Kacholia Page 3


RAHUL’S CA ACADEMY

45. Which of the following is not the central problem of Economics


(a) Who produces what (b) When are goods produced (c) How to produce (d) For whom to produce

46. The most important demerit of capitalism is


(a) Inequalities (b) Absence of greater freedom (c) Classless society (d) Absence of welfare motive

47. Who defined economics in terms of Dynamic growth and development?


(a) Alfred Marshall (b) Robbins (c) Adams smith (d) Paul.A.Samuelson

48. Which of the following is not in the scope of Micro Economics


(a) Should the firm be in business? (b) How much should be produced?
(c) At what price? (d) How to decrease unemployment?

49. Business Economics


(a) Applies the tools of Micro Economics (b) Incorporates tools from multiple disciplines
(c) Practical application of economic theory (d) All of the above

50. Economic laws are


(a) Statement of economic tendencies (b) Statement of consumer behavior
(c) Accepted norms in a society (d) Guidelines of a free market economy

CA. Surabhi Kacholia Page 4

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