Business economics multiple choice questions for CSEET

1. Which of the following is NOT a characteristic of a capitalist economy?

(a) Private ownership of means of production

(b) Central planning by the government

(c) Profit motive

(d) Competition

Answer: (b) Central planning by the government

2. The law of demand states that as the price of a good increases, the quantity demanded:

(a) Remains constant

(b) Decreases

(c) Increases

(d) Becomes unpredictable

Answer: (b) Decreases

3. Supply refers to the quantity of a good or service that producers are willing and able to sell at a given price. Which of the following factors would NOT shift the supply curve?

(a) Change in the price of inputs (b) Technological advancements (c) Change in government regulations (d) Change in consumer preferences

Answer: (d) Change in consumer preferences

4. Monopoly refers to a market structure where:

(a) There are many buyers and many sellers, but each acts independently.

(b) There are few sellers and many buyers, and the seller has some control over the price.

(c) There is only one buyer and many sellers.

(d) There is only one seller and many buyers, and the seller has significant control over the price.

Answer: (d) There is only one seller and many buyers, and the seller has significant control over the price.

5. Inflation is defined as:

(a) A decrease in the general price level of goods and services.

(b) An increase in the general price level of goods and services.

(c) A situation where the economy is neither growing nor shrinking.

(d) A period of high unemployment.

Answer: (b) An increase in the general price level of goods and services.

Artha special Question:

6. The Goods and Services Tax (GST) is an indirect tax levied on the manufacture and consumption of goods and services in India. What was the main benefit of implimenting GST?

(a) Increased revenue generation for  government

(b) Simplification of  tax system

(c) Improved efficiency in logistics and supply chains

(d) All of the above

Answer: (d) All of the above

I hope this helps!