CA Foundation Business Economics RTP May 2026: Question Paper and Solutions

How to Prepare for CA Foundation Business Economics

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Question directory and available solutions

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

1. Business Economics bridges the gap between:
2. The concern regarding changing health consciousness of consumers highlights which limitation of economic theory in real-world decision making?
3. The concept of 'Consumer Sovereignty' means that:
4. Arc elasticity of demand is used when:
5. Which of the following is an example of circulating capital?
6. Match the Pairs Column A Column B a. Implicit Cost 1. Cost already incurred b. Sunk Cost 2. Foregone alternative c. Opportunity Cost 3. Cost of…
7. Exchange value of a commodity refers to:
8. Which market structure is characterized by extreme product differentiation?
9. Which of the following situations would definitely result in a stable equilibrium being achieved through market mechanism alone?
10. A phase where unemployment is mainly frictional and structural is known as:
11. The concept of 'deflationary gap' in Keynesian economics specifically refers to:
12. The Net Divisible Pool (NDP) consists of:
13. Which situation best illustrates adverse selection?
14. Which of the following expenditures is not subject to voting by Parliament?
15. Credit multiplier differs from money multiplier mainly because credit multiplier assumes:
16. The Heckscher-Ohlin theory fails to explain extensive intra-industry trade primarily because it:
17. A tariff-rate quota (TRQ) combines:
18. Under a managed floating exchange rate regime, central bank intervention is most effective when it primarily influences:
19. What was the primary reason for the "Crisis of Confidence" in 1991 that triggered the New Economic Policy?
20. Which specific NITI Aayog initiative is aimed at reducing India's oil import bill and converting coal reserves into cleaner fuel?
21. The "Hindu growth rate," referring to the modest 3.5% average annual GDP growth, occurred during which period?
22. Under the Monetary Policy Framework Agreement, RBI is deemed to have failed if inflation:
23. Which of the following limits the effectiveness of fiscal policy?
24. Consumer surplus can be graphically represented as:
25. The 'bandwagon effect' on consumer behavior leads to: