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Proper Utilization of Time is key of Success

 VIDYA SAGAR
CAREER INSTITUTE LIMITED

Foundation Minor Test – 10 (Economics & BCK)

Batch :
Instruction: Maximum Marks: 100
1. Use HB Pencil to fill ovals for correct answer. Time : 2 Hours
2. Each question carry one mark. Date : 01.09.2019
3. Negative marking .25 marks for each wrong answer.
4. No negative marking for unattempted questions.

___________________________________________________
01. Which is not the characteristic feature of expansion phase in business cycle?
(a) Increase in national output (b) Unemployment
(c) Rise in price and costs (d) Boost in business confidence

02. Business Cycle occurs

(a) Periodically (b) In different phases
(c) Both a & b (d) None of the above

03. Which of the following is not the phase of business cycles?

(a) Prosperity (b) Upswing
(c) Reconstruction (d) Depression

04. “Modern business activities are based on the anticipations of business community and are
affected by waves of optimism or pessimism”, according to __________________
(a) Pigou (b) Keynes
(c) Hawtrey (d) Schumpeter

05. Economic activities will be declining in the phase of ________

(a) Expansion (b) Depression
(c) Contraction (d) Peak

06. Due to recession, employment rate ________ and output _________ .

(a) Rises; rises (b) Falls; falls
(c) Rises ; falls (d) Falls; rises

07. The internal causes of business cycle is

(a) Fluctuation in effective demand (b) Technology shocks
(c) Both a & b (d) None

08. According to some economists, ______ are the prime causes of business cycles.
(a) Fluctuations in aggregate demand (b) Fluctuations in investments
(c) Macroeconomic policies (d) All of the above

09. Boom and depression in business cycle are _______

(a) Turning points (b) Equilibrium points
(c) Both a & b (d) None of the above

10. Which is not related to great depression of 1930?

(a) It started in USA
(b) John Maynard Keynes regarded lower aggregate expenditure as the cause
(c) Excess Money supply
(d) Both a & b
11. The price of tomatoes increases and people buy tomato puree. You infer that tomato puree
and tomatoes are:
(a) normal goods (b) complements
(c) substitutes (d) inferior goods

12. Demand for a good will tend to be more elastic if it exhibits which of the following
characteristics?
(a) It represents a small part of the consumer's income.
(b) The good has many substitutes available.
(c) It is a necessity (as opposed to a luxury).
(d) There is little time for the consumer to adjust to the price change.

13. The demand for a factor of production is said to be a derived demand because :
(a) It is a function of the profitability of an enterprise
(b) It depends on the supply of complementary factors
(c) Its stems from the demand for the final product
(d) IT arises out of means being scarce in relation to wants

14. If price of computers increases by 10% and supply increases by 25%. The elasticity of
supply is:
(a) 2.5 (b) 0.4
(c) (-) 2.5 (d) (-) 0.4

15. Utility is _____________ satisfaction by consumer and satisfaction is __________:

(a) anticipated, actual (b) actual, anticipated
(c) usefulness, anticipated (d) None of the above

16. Which of the following statement is false?

(a) es is infinity all along any horizontal supply curve
(b) es is 1.0 all along any supply curve which passes through the orgin
(c) ed is zero all along any vertical demand curve
(d) ed is -1.0 along any demand curve where spending would be the same at each price.

17. Which of the following has the lowest price elasticity of supply:
(a) Luxury (b) Necessities
(c) Salt (d) Perishable goods

18. Law of diminishing marginal utility may not apply to:

(a) Money (b) Alcoholic drink
(c) Complimentary good (d) All of the above

19. Which of the following is not the characteristic of Labour?

(a) Labour is highly 'Perishable' in the sense that a day's labour lost cannot be completely
recover
(b) Labour is inseparable from the labourer himself
(c) Labour has a strong bargaining power
(d) The supply of labour and wage rate are directly related in the initial stages

20. Which of the following is correct?

(a) Marginal cost is always less than the average cost.
(b) Marginal cost is always more than the average cost.
(c) Marginal cost is always equal to the average cost at its minimum point.
(d) Marginal cost is always equal to the average cost

21. Secular period is also known as:

(a) very short period (b) short period
(c) very long period (d) long period
22. Under perfect competition price of the product:
(a) Can be controlled by individual firm
(b) Cannot be controlled by individual firm
(c) Can be controlled within certain limit by individual firm
(d) None of the above

23. Monopolistic competition differs from perfect competition primarily because:

(a) in monopolistic competition, firms can differentiate their products.
(b) in perfect competition, firms can differentiate their products
(c) in monopolistic competition, entry into the industry is blocked.
(d) in monopolistic competition, there are relatively few barriers to entry.

24. Stage I of production ends where:

(a) APL = MPL (b) APL is maximized
(c) MPL is maximized (d) Both (a) and (b) are correct

25. If average cost is ` 545 at 2 units of output and it is Rs 185 at 8 unit of output. Find the
marginal cost at 8 unit of output:
(a) 390 (b) 65
(c) 360 (d) None of these

26. If the railways are making losses on passenger traffic they should lower their fares. The
suggested remedy would only work if the demand for rail travel had a price elasticity of ----
---------:
(a) Zero (b) Greater than zero but less than one.
(c) One (d) Greater than one

27. Adam smith published his masterpiece "An enquiry into the nature and causes of wealth or
nation" in the year:
(a) 1776 (b) 1786
(c) 1756 (d) 1766

28. The cost of one thing in terms of the alternative given up is known as:
(a) production cost (b) physical cost
(c) real cost (d) opportunity cost

29. Suppose that, at the profit-maximizing level of output, a firm finds that market price is less
than average total cost, but greater than average variable cost. Which of the following
statements is correct?
(a) The firm should shutdown in order to minimise its losses.
(b) The firm should raise its price enough to cover its losses.
(c) The firm should move its resources to another industry.
(d) The firm should continue to operate in the short run in order to minimize its losses.

30. Which one of the following is the best example of agreement between oligopolists?
(a) GATT (b) OPEC
(c) WTO (d) UNIDO

31. Micro economics is also known as___________:

(a) Public economics (b) Price theory
(c) Income theory (d) Demand theory

32. If the local pizzeria raises the price of a medium pizza from Rs.60 to Rs.100 and quantity
demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand
for pizzas is:
(a) .67 (b) 1.5
(c) 2.0 (d) 3.0
33. Which of the system is now-a-days myth?
(a) Capitalism (b) Socialism
(c) Mixed (d) None of these

34. Methods of demand forecasting are:

(a) Survey of buyers intention (b) Collective opinion method
(c) Expert opinion method (d) All of these

35. An increases in price of substitutable factor of Production say labour is likely to ______
demand for capital goods
(a) Decrease (b) Increase
(c) Expand (d) Contract

36. The most direct method to forecast demand is short run is_
(a) Survey of buyers intention (b) Collection opinion method
(c) Expert opinion method (d) All of above

37. Which of the following is an example of positive science:

(a) India is an over populated country (b) When price rises demand falls
(c) Air is a mixture of gases (d) All of these

38. The supply function is given Q = - 50 + 10P. Find elasticity of supply using point elasticity
when price is ` 30:
(a) 1.2 (b) - 1.2
(c ) 3 (d) - 3

39. Planning curve is related to which of the following:

(a) Short-run average cost curve (b) Long-run average cost curve
(c) Fixed cost curve (d) Average variable cost curve

40. C.W. cob and Douglas of the U.S.A. studied the production function of the American ________
industries:
(a) Manufacturing (b) Construction
(c) Agriculture (d) None of these

41. ________ Cost remain fixed over certain range of output, but suddenly jump to a new higher
level when output goes beyond a given limit.
(a) Semi- Variable Cost (b) Variable Cost
(c) Fixed Cost (d) Stair – Step Variable Cost

42. A college of bachelor degree raised their fees by Rs. 500 in order to increase their total
revenues. But actually their total revenue had fallen. Then the demand for bachelor degree
is……
(a) Relatively elastic (b) Relatively in elastic
(c) Unit elastic (d) Perfectly elastic

43. Monopoly would usually generate ____ when compared to perfect competition market:
(a) Higher quantity at higher price (b) Lower quantity at lower price
(c) Higher quantity at lower price (d) Lower quantity at higher price

44. Which method of demand forecasting is knows as Delphi technique:

(a) Controlled Experiments (b) Collective opinion
(c) Expert opinion method (d) Statistical Method

45. Due to operation of income effect and substitution effect, ___________ effect operates and law
of demand holds:
(a) MRS (b) Price
(c) Both (a) & (b) (d) None of the above
46. Sir Robert Giffen conduct has experiments on ______________:
(a) British workers (b) American workers
(c) Indian workers (d) Italian workers

47. Consumer equilibrium can be attained where:

(a) Price line is tangent to ISO utility curve
(b) MRS of good X and Y is equal to ratio between prices of two goods
(c) Both (a) & (b)
(d) None of the above

48. Relationship between AR, MR and Price elasticity of demand is:

(a) MR = AR + [e -1/e] (b) MR = AR x [e -1/e]
(c) AR = MR x [e -1/e] (d) MR = AR x [e/e -1]

49. The firm operates in the ______, but plans in the ______.
(a) long-run; short-run (b) long-run; long-run
(c) short-run; long-run (d) short-run; short-run

50. Extreme product differentiation is found is which market:

(a) Perfect competition (b) Monopolistic competition
(c) Oligopoly (d) Monopoly

Questions 51 are based on the demand and supply diagrams in Figure 1. S1 and D1 are the
original demand and supply curves. D2, D3, S2 and S3 are possible new demand and supply
curves. Starting from initial equilibrium point(1) what point on the graph is most likely to
result from each change?

51. Assume X is a normal good. Holding everything else constant, assume that income rises
and the price of a factor of production also increases. What point in Figure 1 is most likely
to be the new equilibrium price and quantity?
(a) Point 9 (b) Point 5
(c) Point 3 (d) Point 2

52. Which of the following is not U-shaped curve:

(a) AFC (b) AVC
(c) AC (d) MC

53. Under Cobb- Douglas production function contribution of capital and labour respectively-
(a) 3/4th , 1/4th (b) 1/4th ,3/4th
(c) 1/2th, 1/2th (d) None of the above

54. Diamond-water controversy was given by whom and by which utility?

(a) Pigou, MU. (b) Marshall, TU
(c) Keynes, MU (d) Marshall, MU

55. Indifference curve is convex to the origin due to

(a) Increasing Marginal rate of substitution
(b) Diminishing Marginal Rate of Substitution
(c) Constant Marginal Rate of Substitution
(d) None of the above
56. Now a days, in the long run the modern firms faces ______ cost curve when technology
changes.
(a) U- Shaped (b) Boat Shaped
(c) L Shaped (d) J Shaped

57. What is the central problem of economics?

(a) To allocate scarce resources in such a manner that society’s unlimited needs are satisfied as
well as possible.
(b) To allocate unlimited resources in such a manner that society’s limited needs are satisfied
as well as possible.
(c) Both (a) and (b)
(d) None of these

58. Which one is not the Assumption of Ordinal Approach-

(a) Consumer is rational
(b) Consumer has consistent consumption pattern
(c) Consumer is capable of ranking all conceivable combination of goods
(d) Hypothesis of independent utility.

59. Market clearing price determine by the______________:

(a) Demand (b) Supply
(c) Both Demand and Supply (d) None of these

60. As a results of fall in price total revenue falls and with rise in price, Total Revenue rises,
what will be value of Ed:
(a) Less than unity (b) More than unity
(c) Unit Elastic (d) None of above

61. No. of units of given currency that can be purchased for one unit of another currency is
called:
(a) Current ratio (b) exchange rate
(c) Equity (d) Dividend

62. FIPB stands for:

(a) Foreign Institutional Promotion Board (b) Foreign Institutional Preparatory Board
(c) Foreign Investment Priority Board (d) Foreign Investment Promotion Board

63. What is the constitution of Competition Commission of India?

(a) A chairperson and 6 members appointed by the Central Government
(b) A chairperson and 5 members appointed by the Central Government
(c) A chairperson and 5 members appointed by the RBI
(d) A chairperson and 6 members appointed by the RBI

64. NABARD serves as an apex financing agency for the institutions providing investment and
production credit for promoting the various developmental activities in:
(a) Rural areas (b) Urban areas
(c) Sub-urban areas (d) All of the above

65. Law making body at central level in india______

(a) Vidhan Sabha (b) Lok Sabha
(c) Vidhan Parishad (d) All of above

66. Decisions on annual financial spending, taxes and duties and military spending are
considered is_______
(a) Policies (b) Goal setting
(c) Budget (d) Planning
67. Non-Corporate entity includes _____
(a) Sole Proprietorship, HUF and Partnership
(b) Sole Proprietorship, HUF and Trust
(c) Sole Proprietorship, Company and partnership
(d) LLP , Company and Partnership

68. HUF Consist of ______

(a) All person lineally decended from common ancestor , including wives and unmarried
daughter
(b) All person lineally decended from common ancestor , except wives and unmarried
daughters
(c) All male members lineally decended from common ancestor
(d) None of above

69. Chairman and CEO of Microsoft Corporation respectively are:

(a) John Thompson, Satya Nadella (b) Amy Hood, John Thompson
(c) Satya Nadella, Amy Hood (d) John Thomson, Amy Hood

70. FEMA replaced FERA as legislation in:

(a) 1991 (b) 1992
(c) 1999 (d) 2006

71. The method of FDI other than Automatic route is called:

(a) FRI Route (b) Government Route
(c) Institutional Route (d) Priority Route

72. The exploitation of comparatively small market segments by businesses that decide to
concentrate their efforts is called:
(a) Niche marketing (b) Mass marketing
(c) Market segmentation (d) Market positioning

73. When two or more companies come together to expand their business operations in a
newly created entity.
(a) Joint venture (b) Acquisition
(c) Partnership (d) Merger

74. HUF can comprise members of a (Find out odd one out):
(a) Hindu & Sikh family (b) Buddhist family
(c) Parsi family (d) Muslim family

75. The level of BCK Awareness is known as

(a) BCK% (b) BCK Share
(c) BCK Quotient (d) Degree of BCK

76. Gebriel Almond populerised the idea of:

(a) Political culture (b) Social culture
(c) Politics – policy relationship (d) None of the above

77. An example of POC (Point of Contract) Business facilitator:

(a) Transport Agency (b) Business Incubator
(c) Bank (d) Insurance company

78. In order to take a decision, there must be ____________ course of action. Fill in the blank space
with appropriate expression:
(a) One (b) Specific
(c) Financial (d) More than one
79. Which one of the following is not the role of the Competition Commission of India?
(a) To promote practices having adverse effect on competition.
(b) To promote and sustain competition in markets.
(c) To protect the interests of consumers and,
(d) To ensure freedom of trade carried on by other participants in markets in India

80. Bid is the opposite of:

(a) Ask/offer (b) Call
(c) Equity (d) None of the above

81. ________ is the simultaneous purchase and sale of two identical commodities or instruments.
This simultaneous sale and purchase is done in order to take advantage of the price
variations in two different markets.
(a) Cap (b) Term insurance
(c) Arbitrage (d) Hedge

82. ________is a road map of company’s future.

(a) Objective (b) Goal
(c) Vision (d) Aim

82. _____ response not merely recognize and ward off threats but also covert threat into
opportunities”
(a) Aggressive (b) Dynamic
(c) Static (d) Passive

84. Relaxation of Previous Government restriction is _______:

(a) Liberalisation (b) Privatisation
(c) Globalisation (d) All of above

85. The non/ partial realization of expectations is called ______

(a) Risk (b) Reward
(c) Return (d) All of the above

86. On an average life span of commercial organisations in our country is:

(a) 10 years (b) 50 years
(c) 100 years (d) 500 years

87. Reforms in Dowry Act and Divorce Act are the examples of:
(a) Economic Reforms (b) Cultural Reform
(c) Commercial Reform (d) Socio-cultural Reform

88. Establishment of central board of film certification is an example of:

(a) Regulatory Policy (b) Facilitative Policy
(c) Restrictive Policy (d) Distribution Policy

89. Relationship between organisation and environment can be described through:

(a) Exchange of information (b) Exchange of resources
(c) Exchange of influence and power (d) All of the above

90. SEBI has several functions rolled into one body. Which one of the following is not the
function of SEBI?
(a) Quasi-legislative (b) Quasi-judicial
(c) Quasi-professional (d) Quasi-executive

91. ____________ is a technology where the banking organizations resort to the use of electronics,
computers and other networks to execute transactions and transfer funds.
(a) E-cash (b) Digi-cash
(c) Hedge (d) Cap
92. Business as an open system means:
(a) It does not interact with environment (b) It interact with environment
(c) Both of above (d) None of the above

93. The term ‘business like’ means:

(a) Unsystematic (b) Impractical
(c) Systematic and Practical (d) Any of the above

94. Maximum no. Of designated partners in LLP is:

(a) 100 (b) 200
(c) 50 (d) No limit

95. A particular change in environment is viewed differently by different observers i.e.

opportunity for some and threat for some other, it means environment is:
(a) Dynamic (b) Complex
(c) Multi facet (d) Far reaching in impact

96. Match the following —

(1) Environment is easier to understand is parts but difficult to grasp in totality
(2) Environment is continuously changing its shape and character
(3) A Particular change in environment is opportunity so someone and threat for other
(4) Change in environment affect organisation in several ways
(i) Far reaching impact (ii) Multi facet
(iii) Dynamic (iv) Complex
(a) 1(iv), 2(iii), 3(ii), 4(i)
(b) 1(i), 2(iii), 3(iv), 4(ii)
(c) 1(ii), 2(iii), 3(i), 4(iv)
(d) 1(iii), 2(iv), 3(i), 4(ii)

97. Factors for environment scanning does not include:

(a) Events (b) Trends
(c) Issues (d) Experiments

98. Specific occurrence of something is known as :

(a) Events (b) Trends
(c) Either of above (d) None of above

99. Match the following—

(1) Inherent capacity of an organisation
(2) Inherent limitation of an organisation
(3) Favourable condition in organisation environment
(4) Unfavourable condition is organisation environment
(i) Weakness (ii) Threat
(iii) Opportunity (iv) Strength
(a) 1(iv), 2(i), 3(iii), 4(ii)
(b) 1(ii), 2(iii), 3(i), 4(iv)
(c) 1(i), 2(ii), 3(iii), 4(iv)
(d) 1(iv), 2(i), 3(ii), 4(iii)

100. The concept of Global Village was given by:

(a) GATT (b) IMF
(c) WTO (d) World Bank
 CA Intermediate Batch for November 2020
25 November 2019

SURE SUCCESS BATCH

FOR

CA INTERMEDIATE (November 2020)

25th November 2019
In case of negative result of CA Foundation,
Registration fee will be refundable

Vidya Sagar Institute

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Near Durga Pura, Bus Stand, Jaipur - 302018
Mobile :- 93514-68666 Ph. :- 7821821250, 7821821251, 7821821252, 7821821253, 7821821254. web :
www.vsijaipur.com

Vidya Sagar Institute

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Mobile : 7821821255

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