ECONOMICS AND BUSINESS ENVIRONMENT - CSEET MCQ SERIES 10

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. Which of the following is / are the component /s of business environment?

a. Political Environment

b. Economic Environment

c. Social Environment

d. All of the above

3. The Competition Commission of India (CCI) was established under the .

a. Companies Act, 2013

b. Competition Act, 2002

c. Consumer Protection Act, 1986

d. Indian Contract Act, 1872

4. 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

5. is an investment by foreign entities and non-residents in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc.

a. Foreign Funds Investment

b. Foreign Exchange Investment

c. Foreign Direct Investment

d. Foreign Portfolio Investment

6. 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)

7. 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

8. If Net Value Added at Factor Cost = INR 2 Cr. and Depreciation is INR 1 Cr., then GDP at Factor Cost will be:

a. INR 3 Cr.

b. INR 1 Cr.

c. INR 4 Cr.

d. INR 5 Cr.

9. 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

10. 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

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. 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

14. 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

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

a. NNP at Market Prices + Depreciation

b. NNP at Market Prices – Depreciation

c. NNP at Factor Cost + Depreciation

d. GNP at Factor Cost – Depreciation

17. In which of the following case / cases, the law of demand is not applicable?

a. Law of Demand

b. Law of Supply

c. Law of Diminishing Marginal Utility

d. Law of Variable Proportions

18. 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

19. If the revenue expense is more than that of receipts, it indicates that there is a

a. Revenue deficit

b. Capital deficit

c. Total deficit

d. Chronic deficit

20. Which of the following banks were not established by British East India Company?

a. Bank of Bengal

b. Bank of Bombay

c. Bank of Madras

d. Bank of Baroda

21. 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

22. 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

23. Which of the following is not the affiliated office of the Ministry of Corporate Affairs?

a. Serious Fraud Investigation Office

b. Competition Commission of India

c. Indian Institute of Corporate Affairs

d. Securities and Exchange Board of India

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

but was permanently moved to Mumbai in 1937.

a. Kolkata (Erstwhile Calcutta)

b. Chennai (Erstwhile Madras)

c. Coimbatore

d. Ahmedabad

25. Wages, Rents, Interest and Profits are variables considered for computing national income under which of the following methods?

a. Product Method

b. Expenditure Method

c. Income Method

d. Turnover Method

26. 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

27. 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

28. A fashion designer’s business may suffer if he does not change with the changing textile fashion. This development will be covered under which of the following factors?

a. Social

b. Technological

c. Political

d. Economic

29. National Company Law Tribunal (NCLT) is the outcome of the

.

a. Uday Kotak Committee

b. Eradi Committee

c. Cadbury Committee

d. NL Mitra Committee

30. Bank of Bengal, Bank of Bombay and Bank of Madras where were later merged and called Imperial Bank was taken over by the .

a. Bank of Baroda

b. Canara Bank

c. Punjab National Bank

d.         State Bank of India

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

6 c 26 c

7 a 27 d

8 d 28 a

9 a 29 c

10 c 30 a

11 a

12 d

13 c

14 a

15 d

16 d

17 c

18 d

19 a

20 c

1 c 21 d

2 a 22 d

3 a 23 a

4 b 24 b

5 d 25 d