CA Foundation Business Economics PYQ September 2024: 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. Real money refers to :
2. As of 1 st February 2021, how many Regional Trade Agreements (RTAs) were in force worldwide?
3. Which of the following is the correct formula to calculate Excess Reserves?
4. What does RBI publish every six months, providing explanations of the sources of inflation and forecasts for the upcoming period of six to eighteen…
5. Reverse Repo rate is linked to repo rate in the following way :
6. What does TRIPS stand for?
7. Suppose the exchange rate between INR and EUR changes from 1 EUR = 80 INR to 1 EUR = 85 INR. What can be said about the change in the value of the…
8. What does the principle of Absolute Advantage refer to ?
9. The North American Free Trade Agreement (NAFTA), is a trade agreement signed between :
10. A tariff which a WTO member binds itself with a legal commitment not to raise tariff rate above a certain level is known as:
11. Which of the following is covered under Technical Barriers to Trade (TBT)?
12. What term is used for the rate between currencies Y and Z, which is derived from the given rates of another set of two pairs of currency (say, X and…
13. What is the main difference between Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) ?
14. Foreign corporations invest in India to benefit from the country's particular investment privileges such as tax breaks and comparatively lower…
15. On which date was the apex policy-making body, the Planning Commission, replaced by the National Institution for Transforming India (NITI) Aayog ?
16. Which government scheme supports and promotes organic farming, as well as the improvement of soil health?
17. Which initiative aims at the empowerment of Micro Small and Medium Enterprises (MSMEs)?
18. Transportation and storage, real estate service, public administration and education are the activities in India which are covered by :
19. Which of the following is a feature of green revolution ?
20. On which date was the 'New Industrial Policy' announced by Government of India?
21. Which of the following statement is true in relation to the object of The National Data and Analytics Platform (NDAP)?
22. The India Development Update (IDU) report published in November 2022 is published by:
23. What is the full form of DPIIT?
24. Which of the following is not the aim of 'Methanol Economy' programme?
25. Which of the following is related with the total arrangements for the production and distribution of goods and services in a society ?
26. Business Economics is basically concerned with
27. Suppose the price elasticity of demand of a firm for its product is -1.2. If the price of the product is increased by 5%, then it is most probable…
28. Price in capitalist economy is determined by:
29. Sarah, runs a lemonade stall, her decision-making process involves assessing the demand for her lemonade, pricing strategies, and maximizing her…
30. In which economy, the material means of production i.e. factories, capital, mines, etc. are owned by the whole community represented by the State ?
31. Mr. X and Mr. Y are rich rivals and, in a party, Mr. X wears an expensive dress and on seeing it Mr. Y who also has the same dress decided to reject…
32. If the income elasticity of a specific types of goods is greater than one, what does it suggest about the goods ?
33. The demand function of a product X (in kg.) is expressed as Q = 1000 – 50P, where Q is the quantity demanded and P is the price of the product. When…
34. With respect to the properties of indifference curve which of the following statement is false ?
35. The price of a commodity is ₹ 10 per unit. At this price quantity supplied is 500 units. Price elasticity of supply of the commodity is 1.25. At…
36. If change in quantity demanded is 60% and change in advertisement expenditure is 20% then what will be the advertisement elasticity?
37. At higher levels of output average total cost curve and average variable cost curve come closer because :
38. An increase in consumer surplus is likely to occur when :
39. Which tool does the ordinal utility approach uses to analyse consumer behaviour and is based on consumer preferences?
40. The price of 1 kg. of tea is ₹ 50. At this price, 10 kg. of tea is demanded. If the price of coffee rises from ₹ 30 to ₹ 40 per kg., the quantity…
41. How is production in the economic sense distinguished from non-market activities performed within a household ?
42. A firm produces 5 units of output at average fixed cost of ₹ 4 per unit. For production of 10 units of output average cost is ₹ 7 per unit. Average…
43. What is the average product for the third hour of labour?
44. What is the marginal product of the second hour of labour ?
45. Which of the following expenses is included in cost of production and termed as accounting cost?
46. What will be the total amount of sunk cost on the basis of following information? Particulars Amount (₹) crores Fuel and power 1000 Research and…
47. When does the Law of Variable Proportions, or the Law of Diminishing Returns, become relevant ?
48. What is the primary characteristic of Decreasing Returns to Scale ?
49. What term is used to describe costs that remain fixed over a certain range of output but suddenly jump to a new higher level when output goes beyond…
50. Which market covers a wider area such as a few adjacent cities, parts of states, or a cluster of states ?
51. When should a competitive firm consider shutting down its operations?
52. The supply curve of a perfectly competitive firm in the short run is
53. Three major smartphone manufacturers, Alpha Tech, Beta Mobile, and Gamma Gadgets, dominate the smartphone market. These companies are in constant…
54. If Marginal Revenue (MR) for Unit 1 is ₹10, for Unit 2 is ₹5, and for Unit 3 is ₹3 then what will be the amount of Total Revenue (TR)?
55. Talcum powder market is an example of which of the following market?
56. A software company engages in price discrimination for its product. The company identifies different market segments and charges different prices…
57. What happens to the equilibrium price when there is a decrease in supply with no change in demand?
58. In the case of demand decreasing and supply increasing, what is the expected impact on equilibrium price?
59. In Ricardo's view, what does “Exchange Value" represent?
60. Condition for equilibrium of firm under perfect competition:
61. A market structure in which all firms individually are price takers is known as:
62. According to the Kinked demand curve hypothesis, why does the demand curve facing an oligopolist have a 'Kink' at the prevailing price level ?
63. A market structure in which there is only a single buyer and a single seller is known as:
64. Monopolistic Competition is characterized by
65. Suppose the consumption of an economy is given by C = 30 + 0.5Y and investment I = 12 + 0.15Y. What will be the equilibrium level of National Income?
66. Which of the following refers to the mixed income of the self-employed?
67. What does Disposable Personal Income (DPI) represent?
68. The ratio between nominal GDP and real GDP is known as :
69. If the GDP Deflator of a country in the year 2020 is 140.75 and in the year 2021 is 157.33, then what is the inflation rate in the year 2021?
70. If GDP at market price is ₹ 6,700 crore and depreciation is ₹ 530 crore, then what will be the NDP at market price?
71. In the three-sector model of a closed economy (neglecting foreign trade), what are the three components of aggregate demand?
72. According to the Keynesian theory of income and employment, national income depends upon :
73. What are the phases included in the circular flow of income ?
74. Which of the following is not the limitation in the computation of the national income?
75. Which method measures the contribution of each producing enterprise in the domestic territory of a country over an accounting year by consolidating…
76. What will be the GDP at market price (GDP MP ) on the basis of following information? Particulars Amount (₹) crores GNP MP 1100 Net Factor Income…
77. Which of the following is not a correct formula to calculate NNP MP ?
78. The state-level estimates are typically prepared by the State Income Units of the respective states. Which organization is primarily responsible for…
79. What will be the Total Income if the value of Average Propensity to Consume (APC) is 0.45 and Total Consumption = ₹900 crores ?
80. During what time, the production of weapons and arms, etc. increase and most of the resources of the country are diverted for their production?
81. In Recovery phase of business cycle, the process of reversal is initially felt in the:
82. Sarah is considering purchasing a used car from a private seller named John. John claims that the car is in excellent condition and has never been…
83. When there is fall in the levels of investment and employment, producers do not instantaneously recognise the pulse of the economy. What is…
84. What is the term for the lowest point of economic activity in a business cycle, where unemployment is high, and production is at its lowest ?
85. Business whose fortune is closely linked to the rate of economic growth is referred to as :
86. Under which Supreme Court verdict do the Union and State Legislatures have "equal, simultaneous and unique powers" to make laws on Goods and…
87. Under institutional responsibility for public debt management, external debt is the responsibility of :
88. If the primary deficit is ₹20,500 crores and the net interest liabilities of a country are ₹3,500 crores then what will be the fiscal deficit?
89. Which Articles of the Indian Constitution contain specific provisions regarding the distribution of finances among states ?
90. Richard Musgrave introduced a three-branch taxonomy describing the role of government in a market economy. What are these branches ?
91. All revenues received, loans raised and all moneys received by the government in repayment of loans are credited to the :
92. What actions can be taken during Inflation?
93. Which of the following are considered tools of fiscal policy ?
94. The following figures relate to country A for a particular financial year : Particulars Amount (₹) in crores Revenue deficit 10,000 Fiscal deficit…
95. Which of the following is NOT a function of money?
96. The concept of "aversion of risk" is propounded by :
97. What type of currency is issued by the central bank?
98. In an economy, the money supply (M) is ₹500 crores, the velocity of money (V) is 5 and the total number of transactions (T) is 10,000. Calculate the…
99. If the monetary base in an economy is ₹ 250 crores through an open market operation by the central bank, and the money supply is ₹ 1,000 crores,…
100. If the reserve ratio (R) is 0.10 and there is an increase in the reserves by ₹ 1,000, what will be the change in the money supply?