CA Foundation Business Economics PYQ September 2025: Question Paper and Solutions

How to Prepare for CA Foundation Business Economics

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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 under Macro Economics?
2. An ice cream company is planning to expand its business. Before making decisions, it studies various economic factors, such as consumer preferences,…
3. Which of the following statement is true in relation to the socialist economy? Statement-I: Relative inequality of income distribution in the…
4. The important feature of a mixed economy is the:
5. Which one of the following is not the characteristic of a capitalist economy?
6. What will happen to demand when a larger proportion of people belong to older age groups relative to younger age groups?
7. Under ____conditions, supply will be more than that under ____ conditions.
8. Demand is said to be elastic, if:
9. The consumer is in equilibrium position at a point where the price line is:
10. How does an increase in the income of consumers generally affect the demand for normal goods ?
11. If a company increases its advertisement expenditure by 20% and the quantity demanded increases by 40%, what is the advertisement elasticity of…
12. The condition for consumer equilibrium is given by:
13. Which of the following statements is true about Giffen goods?
14. The concept of consumer surplus is closely related to the for a product. curve
15. The slope of the budget line is determined by the relative prices of the two goods and is equal to:
16. When average product rises as a result of an increase in the quantity of variable input, marginal product is:
17. Which of the following curve is known as 'plant curve'?
18. Based on the information given in the following table, answer the Questions Nos. 18 to 20: Product Schedule Quantity of labour Total Product (TP)…
19. Reference Schedule: Quantity of Labour Total Product (TP) Average Product (AP) Marginal Product (MP) 1 10 10 10 2 22 11 12 3 36 12 14 4 44 11 8 5 45…
20. Reference Schedule: Quantity of Labour Total Product (TP) Average Product (AP) Marginal Product (MP) 1 10 10 10 2 22 11 12 3 36 12 14 4 44 11 8 5 45…
21. If a firm adds more number of workers but total output starts to increase at a decreasing rate, the firm is experiencing:
22. Which of the following statements are correct? Statement-I: A period will be considered short-run period if the amount of at least one of the inputs…
23. Which of the following factors or resources make it possible to produce goods and services?
24. In Cobb-Douglas production function, output is manufactured production and inputs used are:
25. After identifying the market, the enterprise has to make decision regarding 4 P's namely:
26. Under which of the following forms of market structure a firm cannot influence the price of its product?
27. What is the Average Variable Cost (AVC) when the quantity produced is 100 units, the total cost is ₹1,000, and the fixed cost is 200?
28. In an increase in supply with unchanged demand:
29. Assuming that the supply of cars will remain constant and the prices of cars are expected to increase in future, then what will be its effect on…
30. A competitive firm should shut down if:
31. Aluminium industry is the example of:
32. Kinked Demand Curve is found under:
33. Which one of the following is not the object of price discrimination?
34. Which of the following is a fundamental cause for the creation of a monopoly?
35. A fast-food chain introduces a new burger with a unique sauce to differentiate itself from competitors. Although many similar burger options exist…
36. Identify the correct formula for Marginal Revenue (MR) when there is a one-unit change in output.
37. When both demand and supply decrease, the equilibrium quantity____ but the change in equilibrium price is ____
38. Which type of firm has the market power to charge a price above marginal cost and earn a positive profit?
39. Suppose that the cost of producing 1,000 units of a product by a Firm is ₹15,000 The entrepreneur has invested ₹ 50,000 in the business and the…
40. When there is a decrease in demand due to a fall in income, while supply remains the same, what happens to the demand curve?
41. Consider the following data and answer the Questions No. 41 to 43: Financial Year (FY) 2020-21 2021-22 2022-23 2023-24 GDP Deflator 100 154.25…
42. Reference Data: Financial Year (FY) 2020-21 2021-22 2022-23 2023-24 GDP Deflator 100 154.25 168.40 148.25 In which FY the nominal GDP and real GDP…
43. Reference Data: Financial Year (FY) 2020-21 2021-22 2022-23 2023-24 GDP Deflator 100 154.25 168.40 148.25 In which FY the price level has fallen?
44. If the consumption function C=10+0.5Y and Investment is ₹ 200, then what will be the equilibrium level of Income?
45. The maximum value of investment multiplier will be the infinity when the value of:
46. Calculate the consumption of fixed capital (depreciation) from the following data: Particulars Amount (₹) in crores GDP MP 8,000 NNP MP 5,600…
47. There are three different interlinked phases in a circular flow of income, namely:
48. Calculate the net factor income from abroad from the following data: Particulars Amount (₹) in crores NDP MP 10,000 NNP MP 12,000 Net indirect tax…
49. If the GDP deflator is greater than 100, it indicates that:
50. Gamma Ltd., a South Korean company, earns profits from its manufacturing operations in India. How these profits will be reflected in the economic…
51. If national income increases from ₹ 500 crores to ₹ 2,500 crores due to an increase in investment of ₹ 200 crores, what will be the value of the…
52. The slope of the consumption function represents _________.
53. Who are the economists credited with pioneering National Income Accounting?
54. If a country has the following economic data: GDP MP ₹ 2,000 billion, indirect taxes = ₹ 250 billion and subsidies = ₹ 100 billion, what is its GDP…
55. If the Average Propensity to Save (APS) of a household is 0.4, and their total income is ₹ 25,000, what is the total saving?
56. Which of the following is an anti-inflationary measure that puts downward pressure on aggregate demand, causing the economy to slow down?
57. The advent of mobile phones, which led to a boom in telecom industry, exemplifies which external cause of business cycles?
58. Which of the following best describes the economic conditions during bad trade in a business cycle?
59. Business cycles typically consist of which of the following phases?
60. Which of the following is true about the duration and intensity of business cycles?
61. What does Article 275 of the Indian Constitution deal with?
62. Who introduced the concept of 'collective consumption goods, which later came to be known as public goods?
63. If a government's revenue receipts for a year are ₹ 10,000 crore, capital receipts excluding borrowing are ₹ 2,000 crore, revenue expenditure is ₹…
64. Contractionary fiscal policy typically involves:
65. The government's use of proceeds from progressive taxes to supply essential food grains at highly subsidized prices to BPL households is an example…
66. The Right of Children to Free and Compulsory Education Act, 2009, which mandates free and compulsory education for every child between the ages of…
67. Alex has comprehensive car insurance, which covers the cost of repairs if his car is damaged in an accident. As a result, he drives more recklessly,…
68. Under Article 266(1) of the Constitution of India, which of the following is used in relation to all fund flows where the government acts as a banker?
69. _________ is defined as the excess of total estimated expenditure over total estimated revenue and is the difference between all receipts and…
70. The situation when the market does not supply products at all despite the fact that such products and services are wanted by the people is known as:
71. For initial deposit of ₹ 6,00,000, the credit creation is calculated at ₹ 50,00,000. What is Required Reserved Ratio (RRR)?
72. Which of the following is not a quantitative tool as used by RBI to control the money supply in the entire economy?
73. Which of the following statements are true in relation to the Crypto currency? Statement-I: These have achieved significant legislative recognition.…
74. If the money supply is ₹ 1,000 billion and the monetary base is ₹ 200 billion, what is the money multiplier (m)?
75. What is the primary objective of monetary policy in most countries, including India?
76. Marginal Standing Facility (MSF) Rate is the penal rate at which the Central Banks lend money to Banks, over the rate available under the Repo…
77. According to Friedman, how does the price level, as a determinant, affect the nominal demand for money?
78. When the speculative demand for money becomes perfectly elastic with respect to the interest rate, making the speculative money demand curve…
79. Calculate Broad Money (M3) from the following data: Particulars (₹ in Crores) Currency with the public 2250 Demand Deposits with the banking system…
80. Which monetary tool is used to check temporary liquidity mismatches in the market due to foreign capital flow?
81. ABC Ltd., a company based in Country 'A', imports machinery from Country 'B'. Recently, Country 'A' introduced a measure that requires all importers…
82. Which of the following consists of a group of countries that have a free trade agreement among themselves and may apply a common external tariff to…
83. Country 'X' has seen an increase in its Real Effective Exchange Rate (REER). As a result, Country 'X's goods are becoming more expensive for foreign…
84. In which of the following forms of FDI, 100% investment is allowed under the automatic route for airport projects in India?
85. Who proposed that a country should export goods in which it has the greatest absolute advantage and import goods in which its absolute advantage is…
86. An anti-dumping duty is a protectionist tariff that a domestic government imposes on imports that it believes are priced below
87. Which of the following is NOT an example of Technical Barriers to Trade (TBT)?
88. A U.S. based cell phone service provider expands its operations in India by offering the same telecommunication services as it does in the U.S. This…
89. The government of India has imposed tariff on steel product as under: 5% ad valorem or 800 per tonne, whichever is higher. It is an example of:
90. Which of the following is not the advantage of a fixed exchange rate regime?
91. Which of the following was NOT the focus of the monetary and financial sector reforms?
92. What type of economy is described as prevalent in ancient and medieval India?
93. Foreign Investment Promotion Board (FIPB) was abolished in May 2017 and which of the following replaced it?
94. The _________ includes a stable and transparent tax structure, better tax compliance, reduction of subsidies and encouragement of private sector…
95. Which of the following sectors has recently been included under the PLI Scheme?
96. Which facility was provided to industry groups to allow flexibility and rapid changes in their product mix without requiring a fresh license?
97. Which scheme aims to increase water use efficiency at the farm level?
98. What is the full form of PMI?
99. Which of the following is the aim of the National Manufacturing Policy?
100. The reason for introduction of 'Kisan Rail' is: