CA Foundation Business Economics PYQ January 2026: Question Paper and Solutions

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Question directory and available solutions

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

1. Which of the following is not covered in microeconomics?
2. Precedence of property rights over human rights is a demerit of which type of economy?
3. When even after increase in price, total revenue remains the same the demand is said to be:
4. Which of these is the correct expression for Arc Elasticity?
5. The product of price quantity ratio at a particular point on the demand curve and the reciprocal of the slope of the demand line is called:
6. Consider the indifference curves given below. What can you infer about the relationship between Good X and Good Y? Good Y A C IC2 IC1 X B Good X
7. Use the table to answer questions 57 and 58: Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 Total Cost (*) | 270 | 370 | 460 | 540 | 610 | 690 | 780 The average…
8. Use the table to answer questions 57 and 58: Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 Total Cost (*) | 270 | 370 | 460 | 540 | 610 | 690 | 780 Average…
9. Which of the following is not true with regard to stage of diminishing returns?
10. Which of the following factors does not lead to internal economies of scale:
11. Relationship between inputs and outputs, when all inputs are changed in the same proportion are called:
12. If the price elasticity of demand is 1, MR will be
13. Consider a monopolist selling in two markets. At a price of 60, the elasticity of demand in market A is 5 and in market B is 6. Calculate the…
14. Which characteristic is shared by monopoly and monopolistic competition, but NOT by perfect competition?
15. First degree price discrimination in a monopolist market is based on:
16. In the kinked demand curve scenario for oligopoly, what happens when a firm raises its price above the prevailing level?
17. The slope of MR curve for a monopoly firm is AR curve. Choose the correct answer. that of the
18. In which phase of business cycle, actual demand stagnates?
19. According to Pigou, modern business activities are based on:
20. What will be the impact on equilibrium price and equilibrium quantity when demand decreases and supply increases?
21. Which phase of business cycle is also called downswing?
22. National income of the economy which is either consumed or saved is equal to the:
23. Given the saving function S=-20+0.5Y and autonomous investment I = 100 crores, what is the consumption?
24. Which of the following factor of production is not included in calculating the National Income?
25. If marginal propensity to consume is 0.6 and marginal propensity to import is 0.04, what is the value of the foreign trade multiplier?
26. If Net Factor Income from Abroad is negative:
27. All of the following are included in government final consumption expenditure except:
28. An autonomous increase in imports has ________ effect on equilibrium income.
29. Which of the following is not listed as a common objective of fiscal policy?
30. Which of the following is not an example of leakages from income stream?
31. In National Accounts, which of the following is considered an 'economic bad' excluded from GDP?
32. What is Net Divisible Pool (NDP)?
33. Using below mentioned data, answer Question No. 83 and 84: Revenue receipts | ₹25,000 Cr. Expenses on revenue account | ₹30,000 Cr. Expenses on…
34. Using below mentioned data, answer Question No. 83 and 84: Revenue receipts | ₹25,000 Cr. Expenses on revenue account | ₹30,000 Cr. Expenses on…
35. Laissez faire approach advocated:
36. When the RBI uses persuasion to convince banks to hold government securities instead of lending to certain sectors, it is called:
37. The optimal average money holding is a negative function of which of the following?
38. Who is responsible for determining the inflation target for the RBI under the Monetary Policy Framework?
39. Which action does the central bank perform during Open Market Operations (OMO) to introduce high-powered money into the economy?
40. The money multiplier would be larger in which of the following scenarios?
41. Which of following taxes has not been replaced by the Goods and Service Tax?
42. How many crops are mandated to receive price support through "Minimum Support Price" (MSP)?
43. In India, public sector is limited to which of the following sectors?
44. Introduction of prudential norms of accounting in respect of classification of assets, disclosure of income and provisions for bad debts in case of…
45. Which of the following is a unique feature in the growth trajectory of the Indian economy?
46. Which of the following currency is often referred to as the vehicle currency, in the foreign exchange market?
47. What is the primary purpose of countervailing duties charged in an importing country?
48. When a foreign investor having no previous experience initiates a FDI in a business which is not related to its existing business in its home…
49. Which of the following is not an objective of WTO?
50. State policy aimed to protect domestic producers against foreign competition through the use of tariff, quotes and non-tariff policy instruments is…
51. Predominance of bureaucracy and the resulting inefficiency and delays which may lead to corruption, red tapism is a demerit of:
52. Consumer surplus is:
53. Which of the following are types of measurement of supply-elasticity? I. Point elasticity II. Inelasticity III. Arc elasticity IV. Perfect elasticity
54. The price of a product is 100 per unit. If price falls by 20% the quantity increases by 120 units. The price elasticity of demand is -1. The new…
55. Other things being equal, the demand for a good and the price of its complement has:
56. Which of the following is the effect of non-price determinants on the Leftward Shift in Demand Curve?
57. Which of the following is NOT a correct statement regarding opportunity cost?
58. If cross-price elasticity between two products is zero, the goods are best described as:
59. What does the term entrepreneur in economics refers to:
60. ______ capital performs its function in production in a single use and is not available for further use. Choose the correct option.
61. "Total Supply of land is perfectly inelastic from the point of view of the economy", it means:
62. Markets where firms buy the resources they need like land, labour etc. are called:
63. A curve which shows all the different combinations of inputs that can produce same level of output is known as:
64. Which of the following is core characteristic of an oligopoly?
65. If output increases from 60 units to 70 units, leading to an increase in total revenue from 100 to 120. What is the marginal revenue?
66. In a monopoly market if ATC > AR:
67. The cross elasticity of demand for monopolist's product and any other product is:
68. Which of the following is not true for long run equilibrium of a perfectly competitive industry?
69. A market characterized by a small number of large buyers and is mostly relevant to factor market is termed as:
70. Purchase of foreign currency contract at future rate from bank is a transaction involving:
71. Which of the following is not a lagging economic indicator?
72. Refer to the following data: Sales: 1,000 Crores Depreciation: 70 Crores Opening stock:100 Crores Closing stock: 90 Crores GST: 100 Crores…
73. Which of the following is not a characteristic of contraction?
74. Which item is not included when calculating national income using the income method?
75. Calculate real GDP if nominal GDP is 450 and price index is 120.
76. Calculate GDP MP
77. Calculate GDP FC
78. Operating surplus includes:
79. Governments redistribution function leads to dead weight losses because:
80. Statement 1: During recession, the government increases its expenditure or cuts down taxes. Statement 2: Deficit budgets are expected to stimulate…
81. Which of the following is not one of the three main macroeconomic goals for any nation:
82. Stagflation is:
83. GST is a:
84. Which equation accurately represents the expanded version of the equation of exchange?
85. Speculative demand for money can be closely linked to which of the following situation?
86. Which of the following is not a channel of monetary policy transmission?
87. Tobin, in his theory of liquidity preference function, framed the relationship between which of the following?
88. Given the required reserve ratio (RRR) is 8% and 12.5% for every 1,00,000 deposited in the banking system, compute the credit multipliers.
89. Which of the following is not a benefit of International Trade?
90. Which of the following is a combination of two policy instruments quotas and tariffs?
91. Which of the following represents a technical measure within Non-Tariff Measures (NTMs)?
92. Calculate the Nominal exchange rate considering the following data: Real exchange rate 25 Domestic price index 14070 Foreign price index 70 Choose…
93. Which initiative of the NITI Aayog is a one-stop destination for all information on electric vehicles?
94. Make in India 2.0 focuses on
95. Which of the following industries is included in the eight core sectors assessed by the Index of Industrial Production (IIP)?
96. What does a Brownfield investment in Foreign Direct Investment (FDI) imply:
97. Which sector accounts for the largest recipient of FDI inflows in India?
98. Which of the following was not a major reform introduced during the 1980s in India?
99. Which of the following is a normative statement?
100. Match the following: Column A (i) Capitalist Economy (ii) Socialist Economy (iii) Mixed Economy Column B (a) Command Economy (b) High Degree of…