CA Foundation Business Economics MTP April 2025: Question Paper and Solutions

How to Prepare for CA Foundation Business Economics

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Question directory and available solutions

200 indexed questions. Open a question to read its full statement and available answer.

1. Which of the following statements is correct regarding business cycles?
2. Business cycle emerge in _____
3. If the price elasticity of demand of a product is (-) 3, what should be the price of the product for its MR to be ₹20?
4. While drawing budget line of a consumer consuming Nachos chips and Pepsi, if the quantity of Nachos taken on Y-axis and quantity of Pepsi on X-axis.…
5. Theory of Mercantilism propagates
6. EVA digital assistance Robot of HDFC Bank is:
7. Which of the following statement is incorrect, - In the simple Keynesian model, -
8. National income accountants can avoid multiple counting by:
9. Gross investment refers to:
10. The largest component of national income is:
11. Transfer payments are:
12. Price Floor is the price fixed by the government, which is:
13. When actual price of a commodity is less than equilibrium price, its price:
14. The cost which is never zero even when production is stopped is known as:
15. At the Point of Inflexion:
16. The Indian Government imposed heavy taxes on commodity to reduce its consumption by the public. Such heavy taxes will decrease the demand of the…
17. What does the term "cascading effect" in taxation refer to?
18. Which characteristic of money refers to its ability to hold value over time?
19. What is the purpose of a capital budget?
20. According to Keynes, what is the role of the government in maintaining full employment?
21. Keynesian economics emphasizes the importance of:
22. Which of the following factors does NOT directly affect the demand for money?
23. In an economy, a change in the reserve ratio will directly affect the:
24. Which of the following budget types specifically aims to reduce the deficit by either increasing taxes or reducing government spending?
25. Which of the following is the most important source of India's foreign exchange earnings?
26. The Green Revolution in India focused primarily on increasing the production of:
27. Which of the following is a primary objective of India's Five-Year Plans?
28. In international trade negotiations, which of the following is the most common objective for countries involved in multilateral trade talks?
29. Which of the following is NOT a key assumption of Ricardo's theory of comparative advantage?
30. According to the Quantity Theory of Money, if the money supply increases while the velocity of money and output remain constant, the general price…
31. Which of the following situations best demonstrates a market failure due to asymmetric information?
32. When a market fails to allocate resources efficiently, leading to overproduction or underproduction of goods, it is called:
33. When e > 1 the MR is
34. Price discrimination will be profitable only if the elasticity of demand in different sub market is:
35. When the Output of the firm increases in the Short run, its average fixed cost :
36. A vertical supply curve parallel to Y axis implies that the elasticity of supply is:
37. Inequality and Exploitation is minimal under:
38. Comfort lie between:
39. Which of the following is not a determinant of the firm's cost function?
40. Which of the following is correct about Cartel?
41. Secular Period is also known as:
42. Price Rigidity explained by Sweezy's model is related to which market form:
43. In business cycle peaks and troughs are collectively known as:
44. Fluctuation in economic activities according to Keynes are due to :
45. Demand for Electricity is elastic because
46. The effectiveness of fiscal policy is limited by:
47. Internal public debt refers to:
48. Redistribution of income by the government is primarily done through:
49. The Finance Commission is responsible for:
50. Which of the following is NOT a function of NITI Aayog?
51. Under Article 112, the Annual Financial Statement is presented in which house of Parliament first?
52. Which of the following is a potential benefit of Foreign Direct Investment (FDI) for the host country?
53. According to the Heckscher-Ohlin theory, a country will have a comparative advantage in the production of goods that:
54. Production of milk is included in which sector?
55. Which of the following is the primary objective of bilateral trade agreements?
56. Agricultural goods markets depict characteristics close to:
57. Monopsony means
58. Which of the following in incurred first?
59. The Great Depression occurred during:
60. The burden of long-term public debt fall on:
61. The strategy of agricultural development in India before green revolution was
62. The transaction motive for holding money implies that money is held to:
63. In the context of trade negotiations, the term “Most-Favoured-Nation (MFN)” status refers to:
64. Which of the following is the most important source of India's foreign exchange earnings?
65. Which of the following statements is correct regarding business cycles?
66. Decrease in input demand
67. During business cycles the opposite of a peak is _____
68. Nicholas Kaldor propounded _____
69. Repercussions of business cycles get _____ felt on nearly all economic variables.
70. Different business cycles _____ in duration and intensity.
71. Peak is the _____ stage of expansion.
72. Which one of the following is not an internal cause of business cycles?
73. Which of the following is a differentiated product?
74. If the market demand curve for a commodity has a negative slope then the market structure must be:
75. The market demand curve for a perfectly competitive industry is: Qd = 12 – 2P and the market supply curve is: Qs = 3 + P. The market will be in…
76. The short run supply curve of a perfectly competitive firm is equal to
77. Marginal revenue is equal to the price under
78. When demand increases and supply decreases,
79. Isoquant in the relevant range are:
80. For Giffen good the angle Curve is :
81. Demand for a commodity with negative income elasticity indicates that as income falls the amount of the commodity purchased
82. Normative economics can be explained through:
83. Entry of new firm is monopoly is :
84. The market price cannot be influenced by a seller under :
85. There is an inverse relation between price and demand for the products of a firm under:
86. Price elasticity of demand under monopoly is
87. Business Economics in its approach is
88. Contraction of demand is the result of
89. The rate at which the consumer is prepared to exchange-good x and y is :
90. Indifference Curve Analysis was proposed by _____
91. Which of the following statement is correct concerning the relationship among the firm's cost function:
92. The marginal utility from last unit consumed of commodity Y = 50 Units and MUm = 10. The consumer is in equilibrium and consuming commodity y only.…
93. The price in collusive oligopoly is decided by:
94. The Government offer minimum assured price to the farmers to purchase their output is called:
95. What are the internal causes of business cycle?
96. The substitution effect will be stronger when:
97. Rational decision making requires that:
98. Which of these country is a purely socialist economy?
99. The Nature of Business Economics:
100. The Book “The Wealth of Nations “is written by:
101. GDP includes:
102. If depreciation exceeds gross investment:
103. By summing the values added at each stage in the production of some good we obtain:
104. The value of money in Fisher's equation is determined by:
105. Value of money is
106. Bank rate policy is not very effective because-
107. Inflation can be controlled by applying:
108. What is Currency Deposit Ratio (CDR)?
109. Open Market Operation is :
110. Which of the following is a qualitative or selective method of credit control by the central bank?
111. The fiscal deficit excluding the interest liabilities for a year is called as ;
112. Pump Priming is related with:
113. The modern state is:
114. Public Debt Management refers to :
115. Education is an example of :
116. The World bank normally gives:
117. Balance of trade is a:
118. Which is not an advantage of International Trade ?
119. Which source of revenue is shared between the Centre and the States in India?
120. Which of the following is a capital receipt in the government budget?
121. Which policy tool can the government use to correct negative externalities?
122. Business Economics is:
123. Market demand is the sum total of :
124. The demand for Scooter and petrol is an example of demand :
125. Goodwill, patent right, etc. are example of:
126. The basic behavioural principle which apply to all market conditions:
127. When growth rate becomes negative & the level of National Income & expenditure declines rapidly, we observe:
128. Which item is excluded from the estimation of national income?
129. If the investment increases by ₹ 50 crores and the multiplier is 4, the change in income is:
130. Which of the following is included in M1 in India?
131. Which of the following is a quantitative instrument of monetary policy?
132. If the RBI increases the Cash Reserve Ratio (CRR), it will lead to:
133. Dumping refers to:
134. Trade between two countries can be useful if cost ratios of goods are:
135. Economic Survey is published by:
136. Which of the following combinations is correct?
137. Rolling plan is a plan for:
138. Unemployment in a developing country is generally take place due to
139. Disguised unemployment is common in :
140. Import quota is:
141. The best indicator of economic development of any country is:
142. The regulatory body of mutual funds in India is _________.
143. A market for borrowing and lending funds for a period exceeding 14 days:
144. Which of the following are the instruments of money market?
145. Finance Commission:
146. Statutory Liquidity Ratio is:
147. Which of the following Budget documents is mandated by Fiscal Responsibility and Budget Management Act, 2003?
148. In a free market economy, the allocation of resources is determined by
149. The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former:
150. According to Musgrave the major functions of public finance are:
151. In the case of relatively elastic demand, the money burden of tax is on:
152. One negative effect of high public expenditure is:
153. Law of demand is violated when:
154. Elasticity is greater than utility for:
155. Which of the following is not studied in microeconomics?
156. The Characteristics of capitalist economics does not include?
157. Which of the following are within the scope of business economies?
158. The Substitution effect will be stronger when:
159. In spite of the fact that the price of the television sets refrigerators, air conditions etc. have been continuously rising their demand does not…
160. What are the determinants of price elasticity?
161. The turning point of business cycle is produced by when economic indicates :
162. U Shaped average cost curve is based on:
163. The reason behind the upward sloping portion of the long run cost curve is:
164. Short run marginal cost of the firm will be increasing when:
165. Consumer is sovereign under:
166. Demand curve under Oligopoly is:
167. The substitution effect for a fall in the price of a commodity (ceteris paribus) is given by:
168. Who gave the theory of price discrimination?
169. At the shut-down point:
170. Total utility is maximum when:
171. The consumer is in equilibrium at a point where the budget line :
172. An indifference curve slopes down towards right since more of one commodity and less of another result in:
173. The consumer is in equilibrium when the following condition is satisfied:
174. In the case of a Giffen good, the demand curve will be:
175. Which of the following is not an essential condition of pure competition ?
176. Which is the first order condition for the profit of a firm to be maximum?
177. In which form of the market structure is the degree of control over the price of its products by a firm very large?
178. Under which of the following forms of market structure does a firm have no control over the price of its product?
179. The net value-added method of measuring national income is also known as:
180. Which of the following is incorrect?
181. Nearly _________ percent of working population is engaged in the service sector:
182. The industrial sector depends on the agricultural sector because:
183. The Indian industry faced the process of retrogression and deceleration because of:
184. Which of the following statements is incorrect?
185. We can say Indian agriculture has become modern since:
186. Generally, an economy is considered underdeveloped if:
187. _________ is the apex bank for agriculture credit in India.
188. The major cause of unemployment in India is :
189. The largest share of foreign aid in India has been used in the programme of :
190. Before financial reforms, the banking system was characterised by all of the following except:
191. The demand curve facing an industrial firm under monopoly is a/an _________
192. The degree of monopoly power is measured in terms of difference between:
193. A monopoly producer usually earns _________ even in the long run.
194. Price discrimination is not possible:
195. Discriminating monopoly is possible if two markets have:
196. Consumer's surplus left with the consumer under price discrimination is:
197. A firm under monopolistic competition advertises:
198. In short run, a firm in monopolistic competition:
199. In long run, all firms in monopolistic competition:
200. In terms of Ease of Doing Business in 2020 India ranks: