ECONOMICS AND BUSINESS ENVIRONMENT - CSEET MCQ SERIES 11

1. According to , other things being equal, if price of commodity falls, the quantity demanded of it will rise, and if price of commodity rises, its quantity will decline.

a. Law of Demand

b. Law of Supply

c. Law of Diminishing Marginal Utility

d. Law of Increasing Marginal Utility

2. The components of Capital Budget are:

a. Capital Receipts and Capital Expenditure

b. Capital Receipts and Revenue Receipts

c. Only Capital Expenditure

d. Only Capital Receipts

3. “No Change in Fashion” is the assumption of which of the following laws of economics?

a. Law of Production

b. Law of Demand

c. Law of Diminishing Returns

d. Law of Rent

4. All revenues raised by the government, money borrowed and receipts from loans given by the government flow into the .

a. Total fund of India

b. Net fund of India

c. Consolidated fund of India

d. Gross fund of India

5. Regional Rural banks are covered under:

a. Commercial Banks

b. Small Finance Banks

c. Payments Banks

d. Co-operative Banks

6. If percentage change in quantity demanded is 10% and percentage change in price is 5%, then price elasticity of demand will be?

a. 2

b. 1

c. 0.5

d. 4

7. If GDP at Market Prices is INR 200 Cr. and Net Income from Abroad is INR 100 Cr., then what will be the value of GNP at Market Prices?

a. INR 100 Cr.

b. INR 400 Cr

c. INR 300 Cr.

d. INR 500 Cr.

8. Which of the following committees recommended for opening up of the insurance sector to private players?

a. Kumarmangalam Birla Committee

b. Malhotra Committee

c. N.L. Mitra Committee

d. Kothari Committee

9. The proposals of the government for levy of new taxes, modification of existing tax structure or continuance of the existing tax structure beyond the period approved by Parliament are submitted to Parliament through .

a. Appropriation Bill

b. Finance Bill

c. Ordinary Bill

d. None of the above

10. A / An is a company which is a financial institution carrying on its principal business the financing of physical assets supporting productive / economic activity, such as automobiles, tractors, lathe machines, generator sets, earth moving and material handling equipments, moving on own power and general purpose industrial machines.

a. Asset Finance Company

b. Investment Company

c. Loan Company

d. Infrastructure Finance Company

11. Pradhan Mantri Kaushal Kendra is the initiative of which of the following ministries of the Government of India?

a. Ministry of Human Resource Development.

b. Ministry of Agriculture

c. Ministry of Skill Development and Entrepreneurship

d. Ministry of Corporate Affairs

12. “No change in the goals of the firm” is the assumption of which of the following laws of economics?

a. Law of Supply

b. Law of Diminishing Marginal Utility

c. Law of Demand

d. Law of Increasing Returns to Scale.

13. In which of the following scenario, the Cross Elasticity between two commodities X and Y ‘will be ‘Zero’?

a. Commodity X is nearly a perfect substitute for commodity Y

b. Commodities X and Y are complementary

c. Commodity X and Y are not related

d. Commodity X is superior to Commodity Y.

14. Which of the following is not the objectives of the Competition Commission of India?

a. To prevent practices having adverse effect on competition.

b. To promote manipulative trade practices.

c. To promote and sustain competition in markets

d. To ensure freedom of trade

15. Gifts, donations and scholarships are which form of payments?

a. Factor Payments

b. Explicit Payments

c. Implicit Payments

d. Transfer Payments

16. Which of the following is not the method of measuring national income?

a. Product Method

b. Income Method

c. Profit Method

d. Expenditure Method

17. The method of national income measures the contribution of each producing enterprise in the domestic territory of the country.

a. Income

b. Expenditure

c. Product

d. Turnover

18. account for flows of those transactions where the government is merely acting as a banker.

a. Public

b. Private

c. Sales

d. Profit & Loss

19. The Central Government has constituted National Company Law Tribunal (NCLT) under section 408 of the .

a. Income Tax Act, 1961

b. Indian Companies Act, 1956

c. Negotiable Instruments Act, 1881

d. Indian Companies Act, 2013

20. Consider the following functions:

i) Issuers of the Securities

ii) Protects the Interests of Traders & Investors

iii) Financial Intermediaries

Which of the following organisations perform the aforesaid functions?

a. Securities and Exchange Board of India

b. Reserve Bank of India

c. National Stock Exchange (NSE Ltd.)

d. Ministry of Finance

21. The is the difference between the monetary value of exports and imports of output in an economy over a certain period of time.

a. Balance of trade

b. Balance of payment

c. Balance of national accounts

d. Balance of Consolidated Fund of India

22. A service or commodity has a / an if a given quantity of it can be supplied whatever might be the price.

a. Relatively Less-Elastic Supply

b. Perfectly Inelastic Supply

c. Relatively Greater-Elastic Supply

d. Unitary Elastic Supply

23. During recession the consumers tend to spend less on luxury items. This phenomenon is related to which of the following business environment?

a. Political environment

b. Social environment

c. Economic environment

d. Legal environment

24. Under which of the following methods of computing national income, the production value of following sectors are added up- Agriculture, Manufacturing, Construction, Transport and Communication, Banking, Administration and Defence?

a. Income Method

b. Expenditure Method

c. Value Added Method

d. Profit Method

25. Giffins Goods, Articles of Snob Appeal, Speculation and Consumer’s Psychological Bias or Illusion are covered under which of the following?

a. Exceptions to the Law of Demand

b. Exceptions to the Law of Supply

c. Exceptions to the Law of Variable Proportions

d. Exceptions to the Law of Returns to Scale.

26. is a long-term security yielding a fixed rate of interest, issued by a company and secured against assets.

a. Debenture

b. Preference share

c. Equity share

d. Treasury Bills

27. Which of the following is the implementing agency of Pre-Departure Orientation Program (PDOT) ?

a. Industrial Finance Corporation of India

b. National Bank for Agriculture and Rural Development

c. National Skill Development Corporation

d. Insurance Regulatory Development Authority of India

28. If ep <1, it signifies:

a. Unitary Elastic Demand

b. Perfectly Inelastic Demand

c. Perfectly Elastic Demand

d. Relatively Inelastic Demand

29. Jammu and Kashmir Bank is covered under which of the following types of banks ?

a. Public Sector Bank

b. Foreign Bank

c. Payments Bank

d. Private Sector Bank

30. means, “less demand at same price”.

a. Decrease in demand

b. Increase in demand

c. Contraction of demand

d. Expansion of demand

31. If cross elasticity of demand between commodities X and Y is equal to infinity, then it implies:

a. Commodities X and Y are Giffin Goods

b. Commodities X and Y are complementary

c. Commodities X and Y are not related

d. Commodity X is nearly a perfect substitute for commodity Y

32. If the cost of production of a good increases, i.e., if its cost curve shifts upwards, then the quantity supplied of the good would:

a. Increase

b. Decrease

c. Remain constant

d. None of the above.

33. Illegal money earned through smuggling and gambling should not be included while estimating national income is a precaution under which of the following methods of estimating national income?

a. Value Added Method

b. Income Method

c. Expenditure Method

d. Sales Method

34. The formula to compute GDP at Factor Cost is:

a. Net value added + Depreciation

b. Net value added - Depreciation

c. Net valued added + subsidies

d. Net value added + indirect taxes.

35. From the following information, determine the GDP Deflator? Nominal GDP = ₹ 600 Crore.

Real GDP = ₹ 300 Crore. a. 200%

b. 50%

c. 150%

d. 250%

Q.NO. Ans. Q.NO. Ans.

11 c 31 d

12 a 32 b

13 c 33 a

14 b 34 c

15 d 35 a

16 c

17 c

18 a

19 d

20 a

1 a 21 a

2 a 22 b

3 b 23 c

4 c 24 c

5 a 25 a

6 a 26 a

7 c 27 c

8 b 28 d

9 b 29 d

10 a 30 a