CA FOUNDATION ECO Paper( November 19 )

 

2019 - November

1. NATURE AND SCOPE OF BUSINESS ECONOMICS

(1) A study of have increase in the corporate tax rate will affect national

unemployment rate is

(a) Marcoeconomics             (b) Descriptive economics

(c) Microeconomics (d) Normative economics

Answer: (a) Macroeconomic

[2] A capitalist economy uses as a principal means of allocating resources,

(a) Demand                             (b) Supply

(c) Efficiency                            (d) Price

Answer: (d) Price

[3] In a market economy all assets are held by:

(a) Investors                             (b) Privately             

(c) Government                        (d) Jointly by government

Answer: (b) Privately           

(4) The branch of economic theory that deals with problem of allocating

resources.

(a) Microeconomics                 (b) Marcoeconomics

(c) Eonometrics                        (d) None

Answer: (a) Microeconomics

(105) Larger production of goods would lead to higher production in future.

(a) consumer goods                 (b) capital goods

(c) agricultural goods (d) public goods

Answer: (b) capital goods

(6) Which of the following is not within the scope of business

economics?

(a) Capital budgeting                 (b) Risk analysis

(c) Business cycle                     (d) Accounting Standards

Answer:(d) Accounting Standards

[7] Which is the first book of Economics named as

(a) The Wealth of Nations (b) Economics

(c) Nations of Wealth (d) Political Economy

Answer: (a) The Wealth of Nations

 

[8] Which type of scarcity is referred to in economics

(a) Relative scarcity (b) Absolute scarcity

(c) Both (a) and (b)                   (d) None

Answer: (a) Relative scarcity

. (9) Consurner sovereignty is which of the following characteristics?

(a) Capitalist economy               (b) Mixed economy

(c) Socialist economy (d) Democracy

Answer: (a) Capitalist economy    

                                              2.DEMAND

[10] Supply is a _ concept.

(a) Flow                                             (b) Stock   

(c) Both (a) and (b) (d) None of the above

Answer: (a) Flow

[11] Total utility is also known as

(a) Total satiety                         (b) Aggregate satiety

(c) Full satiety                            (d) Half satiety

Answer: (c) Full satiety

[12] A vertical supply curve parallel to y axis implies the elasticity of supply is

(a) Zero                                                 (b) Infinity

(c) Equal to one                                     (d) Greater than zero but less than infinity

Answer: (a) Zero  

[13) Budget line is also called

(a) Price line                                       (b) Iso cost line

(c) Iso-quant (d) None

Answer: (a) Price line

(14) The Quantity supplied of a goods or services is the amount that

(a) As actually bought during a given time period at given price.

(b) Producers wish, they could sell at higher price

(c) Producers plan to sell during a given time period at given price

(d) People are willing to buy dunng a green their period at a given price

Answer: (c) Producers plan to sell during a given time period at given price

[15] Luxury goods have income elasticity

(a) Negative and less than 1 (b) Positive and greater than 1

(c) Zero (d) None

Answer: (b) Positive and greater than 1

[16] Percentage change quantity supplied is divided by_ to obtain elasticity of supply

(a) Percentage decrease in price (b) Percentage change in price

(c) Both (a) and (b) (d) None

Answer: (b) Percentage change in price

(17) If the price of the product is 20 per unit and if the price decre

5% as a result of which quantity demanded increases by 10% find 11 Old quantity is 10 units)

(a) 9 (b) 19

(c) 10 (d) 12

Answer:

[18] Law of demand relates to:

(a) Price only                                                      (b) Price and quantity demanded of a good

(c) Quantity demanded only                               (d) Supply

Answer: (b)

(19) An in difference curve slopes down towards right since more of one

commodity and of another commodity result in

(a) Same level of satisfaction (b) Maximum satisfaction.

(c) Greater satisfaction ** (d) Less satisfaction

Answer:: (a)

[20] Elasticity for habitual goods is

(a) Perfectly elastic (b) Elastic

(c) Perfectly inelastic (d) Inelastic

Answer:

(21) Diminishing marginal returns for the first four units of variable inputs is

exhibited by the total product sequences.

(a) 50.100.150.200 (b) 50.50,50,50

(c) 50,110,150,260 (d) 50,90,120,140

Answer:(d) 50.90, 120, 140

3.THEORY OF PRODUCTION

[22] Supply of land is---- in case of economy?

(a) Elastic (b) Inelastic

(c) Perfectly elastic                              (d) Perfectly inelastic

Answer: (d)

[23] MP is the slope of-----

(a) TP                                                 (b) AP

(c) Both                                                                           (d) None

Answer: (a)

(24) What will be total output for 2 workers.

(a) 6                                                            (b) 18

(c) 12                                                                               (d) 17

[25] What will be marginal output for 3 workers?

(a) 6                                                                                            (b) 12

(c) 7                                                                                            (d) 8

[26] Average Product for three labour:

(a) 12                                                            (b) 11

(c) 8                                                                (d) None