Dive into success with our CA Foundation Test Book! Packed with comprehensive content and practice tests, it's your ultimate companion for conquering the exam. Let this inspiring guide fuel your ambition and propel you towards a thriving career in chartered accountancy. Get yours today and unlock y...
SR Name Page Note
No. Number
1 Business Economics- 1.1 – 1.13
Basic Concepts
2 Utility Analysis and 2.1- 2.19
Consumer Behaviour
3 Demand Analysis 3.1- 3.31
4 Supply Analysis 4.1- 4.17
5 Production Concepts 5.1- 5.36
6 Cost and Revenue 6.1-6.36
Concepts
7 Market Forms and 7.1- 7.30
Price –output
Determination
8 Business Cycle 8.1- 8.4
, Chapter 1- Introduction and Central Economic Problems
Basics of Business Economics
8. In Business economics ‘Means’ refers
1. The word ‘Economics’ originates from to-
the word ……………… (a) Human wants
(a) Oikomnomikos (b) Resources
(b) Oikonomia (c) Both (a) and (b)
(c) Eikonomikos (d) Neither (a) nor (b)
(d) Ekconomics
9. Which of the following is an economic
2. The word ‘Economics’ originates from activity?
the ………… world ‘Oikonomia’ (a) Boy helping his friend to solve
(a) Roman puzzle.
(b) French (b) Teams playing friendly football
(c) Greek match
(d) European (c) A teacher teaching to class
(d) Watching Television
3. Till 19th century Economics was
known as 10. Which of the following is not an
(a) Political Economy economic activity?
(b) Social Economy (a) Housewife doing household duties
(c) Both (a) and (b) (b) Manufacturing of garments at
(d) Neither (a) nor (b) subsidized rate.
(c) Medical facility rendered by
charitable trust
4. The meaning of Greek word ‘oikonomia’ (d) A CA doing his own practice.
is …….
(a) Wealth Management 11. Which of the following is an economic
(b) House Management activity?
(c) Business Economics (a) Housewife doing household duties
(d) Business Management (b) Listening to music on radio
(c) Medical facility rendered by
5. Human wants are…... and means to charitable trust
satisfy these wants are…... (d) Teaching one’s own son at home.
(a) Limited, scarce
(b) Unlimited, unlimited
(c) Unlimited, scarce 12. The law of Scarcity-
(d) Limited, Unlimited (a) Does not apply to developed and
rich countries
6. The meaning of the word ‘Economic’ is (b) Applies only to less developed
closely connected with the word- countries
(a) Scarce (c) Implies that the consumers’ want
(b) Unlimited will be satisfied in a socialist
(c) Restricted economy
(d) Both (a) and (b) (d) Implies that consumers’ want will
never be completely satisfied.
7. In Business economics ‘ends’ refers to-
(a) Human wants 13. What does the scarcity of resource
(b) Resources implies…
(c) Both (a) and (b) (a) We must develop way to decrease
(d) Neither (a) nor (b) our individual wants
1.1
, Chapter 1- Introduction and Central Economic Problems
(b) Not all wants can be satisfied (c) Old
(c) Resources can not satisfy any want (d) Both (a) and (b)
(d) Resources are very scarce and shall
not be used at all 19. Consider the following and decide,
which economy (if any) is without
14. Rational decision making requires- scarcity
(a) One’s choice never vary (a) American economy
(b) One’s choice be consistent with (b) Indian economy between 1947-
one’s goal 2000
(c) One makes choices that do not (c) Pre independent Indian economy
involve trade-offs (d) None of the above
(d) One must be graduate to make
decision 20. Scarcity in Economics is an.
(a) Relative concept
15. …….. DefinedBusiness Economics in (b) Absolute concept
terms of the use of economic analysis (c) Irrelevant concept
in the formulation of business (d) Not a concept at all
policies?
(a) J.B Say
(b) Alfred Marshall 21. ………..refers to the process of
(c) Walker selecting an appropriate alternative
(d) Joel Dean that will provide the most efficient
means of attaining a desired end, from
16. Business Economics is also known two or more alternative courses of
as………… action?
(a) Managerial Economics (a) Problem solving
(b) Social Economics (b) Problem analyzing
(c) Environmental Economics (c) Managerial expertise
(d) Money Market Economics (d) Decision making
17. Which of the following statement is not 22. Which of the following involves
correct? Business decision making?
(a) Business Economics refers to the (a) Continue or shut down decision
integration of economic theory with (b) Launching of new product
business practice (c) Proper debt and equity mix
(b) Business Economics is not only (d) All of the above
valuable to business decision
makers, but also useful for 23. Which of the following does not involve
managers of ‘not-for-profit’ Business decision making?
organisations (a) Lease or purchaseof an asset
(c) theories of Economics provide the (b) Deciding which movie to watch on
tools which explain various weekend
concepts such as demand, supply, (c) In-house production or outsource
costs, price, competition etc (d) Which production method should
(d) Business Economics is concerned be used for manufacturing of
only with Micro Economics goods?
, Chapter 1- Introduction and Central Economic Problems
(c) Both (a) and (b)
(d) Neither (a) nor (b) 32. We mainly study the following in
Macro-Economics: ………………
25. Positive Science explains- (a) External value of money
(a) “What is” (b) Product pricing
(b) “What was” (c) National income and output
(c) “What ought to be” (d) (a) and (c)
(d) “What will”
33. Micro and macro are not two
26. Normative Science explains- independent approaches to economic
(a) “What is” analysis but they are complementary
(b) “What ought to be”. to each other.
(c) “What will” (a) False
(d) Both (a) and (b) (b) True
(c) Partly true
27. Positive science is- (d) Partly false
(a) Descriptive
(b) Prescriptive 34. Inventory does not includes
(c) Explanatory (a) Raw Material
(d) Imaginary (b) Work in progress
(c) Finished goods
(d) None of the above
28. Normative science is- 35. The study of behavior of consumers in
(a) Descriptive the market and the effect of changes in
(b) Prescriptive the determinants of demand is called
(c) Explanatory as
(d) Imaginary (a) Demand analysis
(b) Demand forecasting
(c) Cost analysis
29. The study of economic behavior of an (d) Market analysis
individual firm or industry in national
economy is called as …… 36. ………. is the technique of predicting
(a) Micro Economics future demand of goods and services
(b) Macro Economics on the basis of past behavior of factor.
(c) Business Economics (a) Demand analysis
(d) Behavioral Economics (b) Demand Forecasting
(c) Market analysis
30. Macro Economics deals with (d) Price analysis
(a) External value of money
(b) Employment and economic growth 37. …………explains the relationship
(c) General price level between input and output
(d) All of above (a) Cost theory
(b) Supply theory
31. We mainly study the following in (c) Demand theory
Micro-Economics: ……………… (d) Production theory
(a) General price level
(b) National income and output 38. Degree of market power is determined
(c) Location of industry by-
(d) Employment and economic growth (a) Demand analysis
1.3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bhawana. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.38. You're not tied to anything after your purchase.
