WorksheetsCAFC PAPER 4
Total questions: 100
Worksheet time: 50mins
Which branch of economic theory deals with allocation of resources:
Economic Growth
Macro economic
Micro economic
None of these
Taxation involves which aspects of normative economics
Incentive to work
Incidence
Fairness
All of the above
For Giffen good the Engel curve is
Vertical
Positive sloped
horizontal
Negative sloped
A theory is :
An assumption
A hypothesis
None of these
A validated hypothesis
When the demand curve is a rectangular hyperbola an increase in the price of the commodity causes the total expenditure of consumers of the commodity to:
Increase
Remain unchanged
Decrease
Any of the above
Who describes production function as the relationship between the maximum amount of output can be produced and the input required to make that output :
Malthas
Samuelson
Hicks
None of these
When the average product of labour is maximized the marginal product of labour:
Equal zero
is maximized
Equal AP L
None of these
The Turning point of business cycle is predicted by
Lagging Indictor
Leading Indicator
Coincident
All of the above
Fluctuation in Economic activities are due to :
Change in money supply
Profitability
Fluctuation in aggregate demand
None of these
Between two perfect substitute the elasticity of Substitution is ______
< Zero
>Zero
< Infinity
Infinity
Globalization indicate rapid ___ between Countries
Competition
Investment
Integration
None of these
The Concept of Price rigidity in market is explained in which form of market
Monopoly
Monopolistic Market
Perfect Competition
Oligopoly
“Supply creates its own demand” statement is given by ______
Marshall
J B Say
Ricardo
Kuznets
What are the main assumption of Production Function
Relationship between inputs and output exists for a specific period of time
There is a given state of the art in production Technology
Input consideration Included in a particular function output resulting from their utilization is at the maximum level
All the above
A rational producer will always produce in which stage of law of variable proportion:
Stage I
Stage II
Stage III
None of these
Full Capacity is utilized in the which market condition______
Monopoly
Perfect Competition
Oligopoly
None of these
If increasing railway fare increases revenue and decreasing then decrease revenue then the demand for railway travel has a price elasticity of _____
Greater than 1
1
Greater than 0 but less than 1
None of these
Which of the following statements is correct?
In a two-good economy, the production possibilities frontier reflects the maximum amount of one good that can be produced when a given amount of the other good is produced.
Microeconomics is the study of the behavior of the economy as a whole.
Positive economics focuses on welfare of the people of a society
None of the above
Net domestic expenditure is consumption expenditure plus ______
Net foreign investment
Net foreign investment plus net domestic investment
Net domestic investment
Replacement expenditure
‘No matter what the price of coffee is, Ram always spend a total of exactly 100 per week on coffee.’ The statement implies that;
Ram is very fond coffee and therefore he has an inelastic demand for coffee
Ram has elastic demand for coffee
Ram’s demand for coffee is relatively less elastic
Ram’s demand for coffee is unit elastic
Which of the following statements is false in respect of fixed cost of a firm?
As the fixed inputs for a firm cannot to changed in the short run, the TFC are constant, except when the prices of the fixed inputs change.
Total Fixed Costs (TFC) can be defined as the total sum of the cost of all the fixed inputs associated with production in the short run
TFC continue to exist even when production is stopped in the short run, but they exist in the long run even when production is not stopped.
In the short run, a firm’s fixed cost cannot be escaped even when production is stopped
For a price taking firm
Marginal revenue is less than price
Marginal revenue is equal to price
Marginal revenue is great than price
The relationship between marginal revenue and price is indeterminate
Which are the areas that come under Macro economics ___
External Value of currency
The general price level and interest rate
Location of the industry
National Income and National Output
Large number of _____ goods would lead to higher production in future:
Capital Goods
Public Goods
Consumer Goods
None of these
The cross elasticity between two goods will be
Positive
Negative
Either (a) or (b)
None of these
Demand for complementary goods are:
Derived Demand
Autonomous demand
Aggregate Demand
None of these
Methods of demand forecasting are:
Survey of Buyer’s intension
Collective opinion Method
Both (a) and (b)
None of these
When total demand for a commodity whose price has fallen increases it is due to:
Price effect
Income effect
Substitution effect
Complementary effect
In the quality supplied is exactly equal to the relative change in price then the elasticity of supply is:
Less than one
Greater than one
One
None of these
Production is the organized activity of transforming resource into finished products in the form of goods and services and the objective of production is to satisfy the demand of such transformed resources
Malthus
Jamed Bates and J.R Parteinson
Walras
Lipsey
Envelope curve is also called:
Long Run Average Cost curve
Short Run Average Cost curve
Average Fixed Cost
None of these
Elasticity of substitution in cobb Douglas Function is:
Less than 1
Equal to 1
More than 1
Infinity
If ATC > AR the monopolist will be incurring ____
Losses
Profit
Neutral
None of these
Electricity Companies sells electricity at a cheaper rate in rural areas than for industrial use due to
Price Discrimination
Perfect Competition
Monopolistic Competition
None of these
Pears, Liril & Dove are example of
Perfect Competition
Monopoly
Monopolistic Competition
None of these
Coincident indicator is not indicated as
Inflation
Industrial Production
Retail Sales
New order for Plant and equipment
Which of the following is not an external causes of Business Cycle:
Technology Shock
Fluctuations in Investment
Natural Factors
Population Growth
According to whom fluctuations in economic activities are due to fluctuations in aggregate effective demand:
Schumpeter
Pigou
Keynes
Hawtrey
The slope of budget line is:
Px/Py
Py/Px
Px.Py
None of these
The shape of the Cost curve depends upon
Cost function
Factor of Production
Outlay
None of these
Delphi technique was developed by:
Robinson
Olaf Helmer
Amartya Sen
None of these
Economy’s historical performance was reflected by:
Lagging indicating
Leading indicating
Leading indicating
None of these
In monopoly and monopolistic Competition
Average Revenue < Marginal Revenue
Average Revenue = Marginal Revenue
Average Revenue > Marginal Revenue
None of these
Which of the following is demerit of Capitalism
There is precedence of property rights over human right
It functions in a domestic framework
High degree of operative efficiency
None of these
Snob effect is explained as ______
It is a function of consumption of others
It is a function of price
Both (a) and (b)
None of these
If the cross elasticity is only- slightly below zero which of the following is correct?
They are weak complements
Negative and very high they are strong complements
Both (a) and (b)
None of these
After identifying the markets the enterprise has to make decision regarding 4Ps which one of the
following is not one of those 4Ps :
Promotion
Population
Place
Produce
Cost of living increase when business cycle is operating at its
Lowest point
Peak
Contracting
Expanding
The kinked demand curve of Oligopoly is useful in explaining
How the collusion work
The process by which oligopolistic merge
Price and output are sensitive to charge in marginal cost
Why oligopolistic price might charge only infrequently
To influence spending the monetary policy is directed at directly influencing in the short run :
Interest Rate
Unemployment
Inflation Rate
Growth Rate
Long Run Period normal price for a competitive firm will be :
Equal MC of Production only
Equal TC of Production only
Equal AC and MC of Production
None of these
Monopolistic Competition has features of
Monopoly but not competition
Monopoly and competition with features of monopoly predominating
Monopoly and competition with feature of Competition predominating
None of these
If regardless of change in the price the quantity demanded of a good remains unchanged then the
demand curve for the good will be –
Vertical
Horizontal
Negatively sloped
None of these
If the price of a commodity raised by 12% and Ed is ( -) 0.63 the expenditure made on the commodity
by the consumer will _______
Remain the same
Decrease
Increase
Can’t say
During lockdown due to Covid19 a consumer finds the vegetable vendors selling vegetables in the
streets have raised the prices of vegetable than usual prices. She will buy _____vegetable than/as her
usual demand showing the demand of vegetable is ______
Same; Elastic Demand
Same; Inelastic Demand
Less; Elastic Demand
More; Inelastic Demand
Supply and Stock are ________
Different
Same thing
Having no comparison
Different and also having no Comparison
Monopoly Market and Monopsony market combination is called
Duopoly Market
Oligopoly Market
Bilateral Monopoly Market
Monopolistic Market
Law of variable proportion is related to :
Long Run
Short Run
Both (a) and (b)
None of these
What will be the situation if factor prices and factor quantities move in the same direction
Decreasing Cost Industry
Increasing Cost Industry
Constants Cost Industry
All of these
If the Long Run Average Cost Curve falls as output expands is due to :
The law of diminishing return
Diseconomies of scale
Economies of scale
None of these
Which limited company has businesses in Hotels, FMCG and Information Technology?
Wipro Ltd.
ITC Ltd.
Bajaj Ltd.
Infosys Ltd
For a business, Inflation as an indicator of policy shall be most detrimental if?
It is Extremely Low
It is Extremely high
It is Moderate
It is Rising
Perpetual succession benefit is enjoyed by?
HUF
Company
LLP
Both Company and LLP
Environment scanning only helps to get a sense of market landscape. Basis this statement select the correct option
False, as it helps in overall strategic decisions
True, as it only identifies opportunities and threats
False, as it is only for internal analysis of an organisation
True, as it identifies competitors
The Profit and Loss account of Ganpati Agarbattis showed that the revenue was exactly equal to the expenditures during the year. This position is termed as?
Equilibrium
Breakeven Point
Double Entry Accounting Balance
Elastic Losses
Which one of the following is not a foreign company?
Dr. Reddy’s Laboratories Ltd
Walmart
Nestle
HP
Which of the following is not part of internal environment of a business organisation?
Labor Unions
Corporate Culture
Customers
Organisational Structure
Ministry of Petroleum and Natural Gas owns which of the following?
Indian Oil Corporation Ltd.
Bharat Petroleum
GAIL Ltd.
Reliance Industries Ltd
Token money paid in the early stages of Negotiation is called?
Early Money Deposit
Earning Money Deposit
Token E-Cash
Earnest Money Deposit
In the first four decades post independence, for fuelling of Industrial development, special purpose financial institutions were created. These institutions were called
Development Banks
Commercial Banks
Regional Rural Banks
Small Finance Banks
Gain for one is a loss for someone else - this concept can be understood by which of the
characteristics of Business Environment?
It is Dynamic
It has far reaching impact
It is multi-faceted
It is complex
Bank of Madura was acquired by which of these?
ICICI Bank Ltd
State Bank of India
Life Insurance Corporation of India (LIC)
HDFC Bank Ltd
Which of the following is not an example of socio-cultural environment?
Role of women in society
Rising income
Family structure
Educational levels
Which of the following is founded by two Danish Engineers taking refuge in India?
Cipla Ltd
L&T Ltd
Flipkart
NTPC Ltd
Policy Formulation process is?
Uni-Directional
Bi-Directional
Multi-Directional
Single Point of Contact Oriented
Security whose price is derived from another underlying asset is called?
Derivative
Options
Forwards
Futures
Environmental analysis helps in:
Turning threats to firm’s advantage
Providing input for strategic decision making
Anticipate opportunities and to take optimal responses
All of the above
The term PESTLE analysis is used to describe a framework for analyzing
Macro Environment
Micro Environment
Both Macro and Micro Environment
None of above
The RBI has been vested with extensive power to control and supervise commercial banking system
under the-
Reserve Bank of India Act, 1934
The Banking Regulation Act, 1949
Both RBI & Banking Regulation Act
The Companies Act, 2013
Indane LPG is the product of which corporation in India?
IOCL
NTPC
ONGC
PGCIL
Mark incorrect: Partnership implies
Contractual ownership of business
Liability of partner is limited to the extent of one’s share capital
The contract is an agreement enforceable at law is called deed
Deed may be registered in India under the Partnership Act, 1932
Economic Reforms introduced in India in 1992 are called LPG that refers to
Good governance
Popularise Public private partnership
Liquidation of loss-making units
None of the above
Identify the one which may be considered as a public policy:
A decision by a central government to purchase a fleet of cars
An old building to be demolished by a municipal corporation
All citizens are to be provided with biometric Aadhar card
Government passes a special resolution to change the name of a park
Government decides to spend 400 crores in the next 5 years for the benefit of women entrepreneurs in
India. This is an example of?
Fiscal Policy
Monetary Policy
FDI Policy
Industrial Policy
A strategic response where businesses are very passive in their behaviour is called as-
Least resistance
Proceed with caution
Dynamic response
Strategic action
Where is the India’s only port-led multi-product SEZ?
Kochi
Mumbai
Surat
Mundra
Which of the following is one of the most significant macro policy indicators that impact business?
International trade
Trade policy
Tax rates
Rural policy
Dividing consumer into groups based on different consumer characteristics, to deliver specially designed advertisements that meet these characteristics as closely as possible, is known as-
Mass marketing
Market targeting
Market segmentation
Marketing plan
Atmanirbhar Bharat is a competition for Global companies in India, this defines which characteristic of the business environment?
Far-reaching impact
Complex
Multi-faceted
Dynamic
FDI is prohibited in which of the following sectors?
Retail
E-Commerce
Education
Chit Fund
Who from the following helps a budding business to quickly launch a product and put it in the first lane of commercial success?
Business incubator
Freight forward
Business accelerator
Merchandiser
Rates of interest that can be changed contractually by the lender are called-
Spot rates
Administered rates
Swap rates
Repo rates
The event of conducting commonwealth games in India is an example of the following element of macro environment
Socio-cultural environment
Political-legal environment
Technological environment
Global environment
Which of the following is an example of facilitating policy?
Companies act 2013
Income tax policy
Monetary policy
Micro-small-medium enterprises
Monetary policy of the government is affected with support from?
RBI
IRDAI
SEBI
NABARD
Which of the company in India to have equity stake in 1st Greenfield Airport at Cochi, India?Which of the company in India to have equity stake in 1st Greenfield Airport at Cochi, India?
Adani Ports SEZ Ltd.
Bharat Petroleum Corporation Ltd.
Tata Sons Pvt. Ltd
Larsen & Toubro Ltd.
Type of privatization, where Government keeps hold of responsibility and private enterprise handles fully or partly the delivery of product and services though contract franchise, grant, etc., is known as:
Investment
Disinvestment
Displacement
Delegation
“Once a company knows what is happening around it, it can plan and strategies accordingly”, this is part of which of the following importance’s of business environment?
Giving direction for growth
Determining opportunities and threat
Image building
Continuous learning
Which of the following is not a subsidiary of NTPC Limited?
Kanti Bijlee Utpadan Nigam Ltd
Bharatiya Rail Bijlee Company Limited
Patratu Vidyut Utpadan Nigam Limited
Powerlink Transmission Limited
Which of the following is incorrect?
Events lead to trends
Trends lead to events
Issues raise expectations
Expectations are opportunities
