Economics and business environment most Important MCQs - CSEET

1. _____________ carry additional features which allow the preference

shareholders to claim unpaid dividends of the years in which dividend

could not be paid due to insufficient profit.

a. Cumulative Preference Shares

b. Redeemable Preference Shares

c. Participating Preference Shares

d. Convertible Preference Shares

2. Which scheme of the Government aids to set up a network of technology

centres and to set up incubation centres to accelerate entrepreneurship

and to promote startups for innovation in agro-industry?

a.Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

b. Scheme for Promotion of Innovation, Rural Industries and

Entrepreneurship (ASPIRE)

c. Entrepreneurship and Skill Development Programme (ESDP)

d. Support for International Patent Protection in Electronics &

Information Technology (SIP-EIT).

3. Agriculture, forestry, fisheries, and livestock management are a few

examples of the primary sector’s ____________.

a. Genetic Industry

b. Extractive Industry

c. Sunrise Industry

d. Sunset Industry

4. The Government of India has come out with the ______________scheme to

provide financial assistance for transport and marketing of agriculture

products in order to boost agriculture exports.

a. Transport and Management Assistance (TMA)

b. Transport and Marketing Assistance (TMA)

c. Tariff and Marketing Assistance (TMA)

d. Tariff and Management Assistance (TMA)

5. Under ___________, the large industries were classified in four categories viz.

Strategic Industries, Basic / Key industries, Important Industries and other

industries which respectively referred to Public Sector; Public-cum-Private

Sector; Controlled Private Sector and Private & Cooperative sector.

a. The Industries (Development and Regulation) Act, 1951

b. New Industrial Policy of India, 1991

c. Industry Policy Resolution (IPR), 1956

d. Industrial Policy Resolution 1948

6. The formula for elasticity of demand is:

a. Ep = Percentage Change in Quantity Demanded / Percentage Change in

Price

b. Ep = Percentage Change in Quantity Demanded x Percentage Change in

Price

c. Ep = Percentage Change in Price / Percentage Change in Quantity

Demanded

d. Ep = Percentage Change in Price x Percentage Change in Quantity

Demanded

7. ________________ is one when the percentage change produced in demand is less

than the percentage change in the price of a product.

a. Unitary elastic demand

b. Relatively elastic demand

c. Relatively inelastic demand

d. Perfectly elastic demand

8. “The production of goods for self-consumption should be counted while

measuring national income” is a requirement under which of the following

methods of computing national income?

a. Value Added Method

b. Income Method

c. Expenditure Method

d. Sales Method

9. 15. GDP at Factor Cost equals to:

a. Gross National Product – Depreciation

b. Gross Value Added + Depreciation

c. Net Value Added + Depreciation

d. Gross National Product + Depreciation

10. Which of the following is not the components of Union Budget?

a. Cash Budget

b. Revenue Budget

c. Capital Budget

d. Fiscal Policy Statement

11. All receipts and expenditure that in general do not entail sale or creation of

assets are included under the__________.

a. Cash Account

b. Profit and Loss Account

c. Capital Account

d. Revenue Account

12. From the following information calculate price elasticity of demand.

Quantity demanded = 100 units

Price = INR 10 / unit

When price increased to INR 20 / unit, the quantity demanded fell to 80

units.

a. 1.2

b. 0.2

c. 1.5

d. 2.5

13. ________ is an index of price changes of goods and services included in GDP.

a. GDP Deflator

b. GDP Inflator

c. GDP Multiplier

d. GDP Accelerator

14. Expenditure incurred for adding to the stock of inventories is covered under

which of the following under the Expenditure Method of computing National

Income?

a. Consumption Expenditure

b. Net Exports

c. Government Expenditure

d. Investment Expenditure

15. Consumer spending less on luxury items like car due to recession will fall

under which of the following business environment?

a. Political Environment

b. Social Environment

c. Technological Environment

d. Economic Environment

16. Which of the following is not covered under the classification of banks in

India?

a. Commercial Banks

b. Indigenous Money Lenders

c. Small Finance Banks

d. Payment Banks

17. No change in fashion is assumption of which law of economics?

a. Law of Diminishing Marginal Utility

b. Law of Demand

c. Law of Supply

d. Law of Variable Proportions

18. A__________ is one when there is no change produced in the demand of a

product with change in its price.

a. Perfectly Elastic Demand

b. Unitary Elastic Demand

c. Perfectly Inelastic Demand

d. Relatively Elastic Demand

19. Under Non-Banking Finance Company a / an ______________ means any

company which is a financial institution carrying on as its principal business

the acquisition of securities.

a. Investment Company

b. Asset Finance Company

c. Infrastructure Finance Company

d. Loan Company

20. ___________ is income obtained by private individuals from any source,

productive or otherwise, and the retained income of corporations.

a. Personal income

b. National income

c. Private income

d. Personal Disposable income

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. 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