ECONOMICS AND BUSINESS ENVIRONMENT - CSEET MCQ SERIES 14

1. The functional relationship of Law of Demand is denoted by:

a. Dx = q(Px)

b. Dx = s(Px)

c. Dx = f(Px)

d. Dx = r(Px)

2. “No Change in Consumer Preferences” is the assumption of which of the following laws of economics?

a. Law of Constant Returns to Scale

b. Law of Demand

c. Law of Variable Proportion

d. Law of Increasing Returns to Scale

3. 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

4. Under which category of banks, Paytm may be covered?

a. Commercial Bank

b. Small Finance Bank

c. Regional Rural Bank

d. Payments Bank

5. From the following information, compute price elasticity of demand: Original Quantity = 20 units

Original Price = Rs. 50 Change in Quantity = 10 units Change in Price = Rs. 20

a. 0.25

b. 2.25

c. 3.25

d. 1.25

6. From the following information, calculate GDP at Market Price: GDP at Factor Cost = INR 200 Crore

Indirect Tax = INR 50 Crore Subsidies = INR 20 Crore

a. INR 500 Crore

b. INR 230 Crore

c. INR 330 Crore

d. INR 130 Crore

7. 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

8. The e-Form ‘AGILE’ is related to:

a. Application for registration of the Goods and Services Tax Identification Number.

b. Application for registration of the Goods and Sales Tax Innovative Number.

c. Application for registration of the Goods and Services Tax Innovative Number.

d. Application for registration of the Goods and Sales Tax Identification Number.

9. From the following information, calculate elasticity of demand Original quantity of mangoes demanded= 50 kgs

Original price of mangoes = Rs10/ kg

New quantity of mangoes demanded = 60kgs.

New price of mangoes = Rs5/kg a. 1.4

b. 0.4

c. 2.4

d. 0.6

10. From the following information, compute Gross National Product (GNP) according to the Expenditure Method

Private Consumption Expenditure = INR 100 Crores Gross Domestic Private Investment = INR 80 Crores. Net Foreign Investment = INR 20 Crores

Rent = INR 60 Crores Wages = INR 100 Crores

Mixed Income = INR 25 Crores

Government Expenditure on Goods and Services= INR 70 Crores a . INR 360 Crores

b. INR 200 Crores

c. INR 385 Crores

d. INR 270 Crores

11. Which of the following formula to be used for deriving NNP at Market Prices?

a. GNP at Market Prices + Depreciation

b. GNP at Market Prices – Depreciation

c. GNP at Factor Cost + Depreciation

d. GNP at Factor Cost – Depreciation.

12. for flows for those transactions where the government merely acts as a banker.

a. Contingency Fund

b. Profit and Loss Account

c. Consolidated Fund

d. Public Account

13. Loan obtained from the Reserve Bank of India (RBI) by the Government of India will be covered under which of the following?

a. Capital Budget

b. Revenue Budget

c. Cash Budget

d. Defence Budget

14. Which of the following organization took over the regulatory and administrative control of UTI from the Reserve Bank of India (RBI) in 1978?

a. Small Industries Development Bank of India (SIDBI)

b. Industrial Finance Corporation of India (IFCI)

c. State Bank of India (SBI)

d. Industrial Development Bank of India (IDBI)

15. The impact of business environment may differ from company to company or country to country. This is covered under which of the following features of business environment?

a. Dynamic

b. Uncertainty

c. Relativity

d. Complex

16. Competition Commission of India is affiliated to which of the following ministries?

a. Ministry of Corporate Affairs

b. Ministry of Finance

c. Ministry of Statistics and Programme Implementation

d. Ministry of Law & Justice

17. If the price of a product increases by 30% and the demand for the product decreases only by 10%, then the demand would be called

a. Perfectly Elastic

b. Relatively Inelastic

c. Unitary Elastic

d. Relatively Elastic

18. Commercial Banks are regulated under the and their business model is designed to make profit.

a. Negotiable Instruments Act, 1881

b. Indian Contract Act, 1872

c. Banking Regulation Act, 1949

d. Essential Commodities Act, 1955

19. 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

20. “No Change in the Distribution of Income and Wealth of the Community” is the assumption of which of the following laws of economics?

a. Law of Demand

b. Law of Supply

c. Law of Diminishing Marginal Utility

d. Law of Variable Proportions

21. 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

22. Rent, Wages, Interest and Profits are which form of payments?

a. Factor Payments

b. Transfer Payments

c. Explicit Payments

d. Implicit Payments

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

a. Factor Payments

b. Explicit Payments

c. Implicit Payments

d. Transfer Payments

24. What is the long form of ULIPs?

a. United Linked Insurance Processes.

b. Unit Linked Insurance Processes.

c. Unit Locked Insurance Plans.

d. Unit Linked Insurance Plans.

25. NFSM was launched to improve the country’s overall crop production, especially that of rice, wheat and pulses. What does NFSM stands for?

a. National Food Safety Mission

b. National Food Security Mission

c. New Food Security Mission

d. New Food Safety Mission

26. Which of the following is/are comes under the gamut of activities of NITI Aayog?

a. Design Policy & Programme Framework

b. Foster Cooperative Federalism

c. Monitoring & Evaluation

d. All of the above

27. 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

28. If a company is sued over data breach of confidential information, a business may need to change how information is collected and stored. This is covered under which of the following?

a. Political environment

b. Economic environment

c. Technological environment

d. Social environment

29. 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

30. The Central Office of the Reserve Bank was initially established in

but was permanently moved to Mumbai in 1937.

a. Hyderabad

b. Calcutta

c. Madras

d. Ahmedabad

31. Salaries, subsidies and interest payments of government are covered under which of the following?

a. Capital Expenditure

b. Miscellaneous Expenditure

c. Imputed Expenditure

d. Revenue Expenditure

32. When a company situated in one country makes an investment in a company situated abroad, it is known as .

a. Foreign Portfolio Investment

b. Foreign Direct Investment

c. Foreign donation

d. Foreign grant

33. Which of the following is / are the bottleneck / (s) for entrepreneurial growth?

a. Inefficient time management

b. Lack of money

c. Too much noise

d. All of the above

34. Receipts from disinvestments will be covered under which of the following categories of receipts?

a. Capital Receipts

b. Revenue Receipts

c. Cash Receipts

d. Accrued Income Receipts

35. Pre-Departure Orientation Training (PDOT) was launched by in collaboration with Ministry of Skill Development and Entrepreneurship.

a. Ministry of Human Resource Development

b. Ministry of Finance

c. Ministry of Agriculture

d. Ministry of External Affairs

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

11 b 31 d

12 d 32 b

13 a 33 d

14 d 34 a

15 c 35 d

16 a

17 b

18 c

19 b

20 a

1 c 21 c

2 b 22 a

3 a 23 d

4 d 24 d

5 d 25 b

6 b 26 d

7 c 27 a

8 a 28 c

9 b 29 d

10 d 30 b