Introduction to Business Economics

209 Practice MCQs available for CA Foundation

Paper

Paper 4: Business Economics

Exam Weightage

5%

Key Topics

Meaning, Scope, Price Mechanism

This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.

Exam Strategy Tip

Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.

Comparison Tables

Microeconomics vs Macroeconomics: The Complete CA Foundation Guide Positive vs Normative Economics: Fact vs Opinion Simple Interest vs Compound Interest: CA Foundation Maths

All 209 Questions

Which of the following is not a demerit of Capitalism?

The greater the inequalities in the distribution of money incomes, the ______ the inequalities in the distribution of national output.

Economics is a branch of _____ focused on the production, distribution and consumption of goods and services.

When we study why saving rates are high or low, we are studying:

A study of how increases in the corporate income tax rate will affect the nation unemployment rate is an example of

A study of how increases in the corporate income tax rate will affect the nation unemployment rate is an example of

Which of these country is a purely socialist economy?

What implications does the resource Scarcity of economy have?

Capital Intensive technique would get chosen in a

Capital Intensive technique would get chosen in a

In a ______ the producer is free to set up any type of firms produce goods and services of his choice.

Which of the following does not suggest a macro approach for India?

The law of scarcity

The law of scarcity

In the beginning the word economics was

Which of the following is an economic system regulating and run by individual hands?

Which of the following would be considered a topic of study in Macroeconomics?

Microeconomics deals primarily with:

Which of the following is not the demerit of Capitalism:

In Economics, we use the term scarcity to mean;

Questions like what should be the level of national income, what should be the wage rate fall within the scope of

Question In the beginning the name of economics was

Consider the following and decide which, if any, economy is without scarcity:

Consider the following and decide which, if any, economy is without scarcity:

In a capitalist economy, profit is socially desirable because it:

In a free market economy, allocation of resources is determined by

In a free market economy, allocation of resources is determined by

Survival and success of any business depends on

Survival and success of any business depends on

Which of the following is a normative economic statement?

Which of the following is a normative economic statement?

If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?

If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?

If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?

If there is no central planning authority to make the fundamental economic decisions and thus to allocate productive resources, how can then free enterprise or capitalist economy solve its central problems?

The choice between labour and capital intensive techniques is related with:

Which of the following is NOT a central issue in Economics?

Administered prices refer to:

Administered prices refer to:

Problem what to produce relates to:

Capital intensive technique of production is used in

Which economy is now a myth only, as no country in the world is having that type of economy?

Administered prices are determined in socialism by:

In which type of central economic problem, an economy must decide whether more Indian electric toys should be produced and how many units of each toy should be produced.

Which of the following is not studied in micro economics?

The branch of economic theory that deals with the problem of allocation of resources is

The branch of economic theory that deals with the problem of allocation of resources is

The branch of economic theory that deals with the problem of allocation of resources is

The branch of economic theory that deals with the problem of allocation of resources is

Business Economics is pragmatic in approach because of which of the following cause?

An example of 'positive' economic analysis would be:

An example of 'positive' economic analysis would be:

An example of 'positive' economic analysis would be:

A capitalist economy uses ______ as principal means of allocating resources.

A capitalist economy uses ______ as principal means of allocating resources.

The long-run trends in the business world are determined by

A socialist economy is a system of production where goods and services are produced

Consumer is sovereign under

Economic goods are considered scarce resources because they

Concept of business economics was given by:

Encourage enterprise and risk taking is considered as a merit of which of the following economy?

Which of the following statements is correct?

Which of the following statements is incorrect?

Most of the economic problems are of ________ nature and are affected by_________?

Macro economics doesn't include one example from the following:

Which of the following is not one of the four central questions that the study of economics is supposed to answer?

Which of the following is the central problem of economy?

Which of the following is the central problem of economy?

Which of the following statements is not correct?

Which of the below enables application of economic logic and analytical tool to bridge the gap between theory and practice

The definition "Science which deals with wealth of Nation" was given by

The definition "Science which deals with wealth of Nation" was given by

What implication(s) does resource scarcity have for the satisfaction of wants?

What implication(s) does resource scarcity have for the satisfaction of wants?

Business economics is

There is need of economic study, because

There is need of economic study, because

There is need of economic study, because

The managerial economics

The managerial economics

'Economics is a Science which deals with wealth' was referred by

"If Americans today, for example were to content to live at the level of the Indian middle class people, all their wants would be fully satisfied with their available resources and capacity to produce." On the basis of the above statement, which of the following conclusion can be made?

Which of the following statements would you consider to be a normative one?

Which of the following statements would you consider to be a normative one?

Normative economics is also known as-

The word economics owes its origin with the Greek word oikonomia which means

Macroeconomics is the study of

Which of the following macro variable is/are fundamentally connected to economic analysis?

Which of the following statements is true?

The 'Communist Manifesto' was published in:

The economic system in which all the means of production are owned and controlled by private individuals for profit...

The economic system in which all the means of production are owned and controlled by private individuals for profit...

Socialist economy does have:

Which of the following is not a subject matter of Micro economics?

Which of the following is not a subject matter of Micro economics?

The problem of "what to produce" relate to

Which of the following statements is correct?

Normative science suggest which of the following?

Which type of industries are not primarily profit oriented but are set by state for the welfare of the community?

Macroeconomics is also called

Macroeconomics is also called

Economic is classified into

Scarcity of resources exist at:

Mr. X had been given a task to segregate normative and non-normative statements. Help him to identify which one of these is normative economic statement?

Which of the following is not within the scope of Business Economics?

Which of the following is not within the scope of Business Economics?

Which of the following is not within the scope of Business Economics?

Which of the following is not within the scope of Business Economics?

Demand and _______ are the forces that make market economies work.

Which of the following is not a correct statement?

Which of the following is not a correct statement?

What is economic planning?

Which of the following is not a subject matter of micro economics?

Which of the following is not a subject matter of micro economics?

A socialist economy is called as which of the following?

_____________ is also called as Command Economy

Which of the following is not a merit of socialist economy?

Scarcity of resources occurs due to:

Which of the following statements is correct?

In a market economy, resource allocation is primarily determined by:

______ involves the predominance of bureaucracy and resulting inefficiencies and delays

The economic analysis expects the consumer to behave in a manner which is

Microeconomic theory studies how a free-enterprise economy determines

___________ is concerned with welfare proposition

___________ is concerned with welfare proposition

Positive economics means:

Price in capitalist economy is determined by:

Capitalist economy solve their economic problems through which of the following

Which of the following is a normative statement?

Which of the following are the characteristics of Business Economics:

Which of the following are the characteristics of Business Economics:

Which of the following are the characteristics of Business Economics:

Freedom of choice is the advantage of

Freedom of choice is the advantage of

Freedom of choice is the advantage of

Which of the following is one of the merits of socialism

Which one of the following countries does not follow Capitalist economic system

______ expressed the view the "Economics is neutral between ends".

______ expressed the view the "Economics is neutral between ends".

______ expressed the view the "Economics is neutral between ends".

Which of the following is a cause of an economic problem?

Which of the following is a cause of an economic problem?

Which of the following statements is normative?

Which of the following statements is normative?

Which of the following statements is normative?

Which of the following statements is normative?

Exploitation and inequality are minimal under

Exploitation and inequality are minimal under

Exploitation and inequality are minimal under

Exploitation and inequality are minimal under

Macro Economics is the study of

"The wealth of Nation" Considered as the first modern work of Economics was written by:

Which of the following is not one of the features of capitalist economy?

Which of the following is not one of the features of capitalist economy?

Which of the following is not one of the features of capitalist economy?

The India's Employment rate has increased in march 2023 as compared to march 2022. The study of this aspect comes under

We mainly study the following in Micro Economics:

Larger production of ____ goods would lead to higher production in future.

Sarah runs a lemonade stall, her decision-making process involves assessing the demand for her lemonade, pricing strategies and maximizing her profits within the limited scope of her small business. Which level of the economy does Sarah's lemonade stall represent?

The benefit of economic study is

The benefit of economic study is

The benefit of economic study is

Which of the following falls within the domain of Normative Economics?

The Central Economic Problem is:

The Central Economic Problem is:

Ram: My corn harvest this year is poor.

Normative economics can be best explained through:

Microeconomics is abstract and purely- __________ in nature and takes __________ assumptions.

In every economic system, scarcity imposes limitations on

What is the nature of business economics, which is an applied branch of economics?

Which of the following is not subject matter of Business Economics?

Who defined Business economics in terms of use of economic analysis in formulation of business policies?

Who wrote "An inquiry into the nature and causes of wealth of nations"

Which statement differentiates business economics from economics?

Scarcity definition of Economics is given by

Scarcity definition of Economics is given by

Scarcity definition of Economics is given by

Which of the following is a normative statement?

Micro-economics is concerned with

Impact of balances of trade and balances of payments on GDP are studied as a part of

Consumer behaviour & location of industry are areas under

Rational decision making requires that

In a Socialistic Economy allocation of resources is done by

Business economics is a field which uses economic theory and quantitative methods to analyze business enterprises

Which of the following statements is incorrect?

Which of the following statements is incorrect?

What social function is served by profits in a capitalist economic system?

Which of the following statement is correct?

Which of the following refers to the sum total of arrangements for the product and distribution of goods and services in society?

The difference between positive and normative Economics is:

The difference between positive and normative Economics is:

What is the merit of Capitalism?

Business Economics is

The Characteristics of capitalist economics does not include?

Taxation involves which aspects of normative economics:

Taxation involves which aspects of normative economics:

Taxation involves which aspects of normative economics:

The Communist Manifesto published in 1848 by Karl Marx and Frederic Engels Propounded the concept of

In Economics, the central economic problem means:

Which of the following are features of a mixed economy?

Economists regard decision making as important because:

Which of the following statements does not apply to a market economy?

Which one of the following statements is correct regarding socialist economy?

Mr. Satish hired a business consultant to guide him for growth of his business. The consultant visited his factory and suggested some changes with respect to staff appointment, loan availability and so on. Which approach is that consultant using?

Which of the following is a limitation of using GDP as a measure of economic well-being?

Under which of the following economy the consumer have limited freedom of choice

The central problem in economics is that of

Which of the following is considered as a disadvantage of allocating resources using the market system?

Which of the following is considered as a disadvantage of allocating resources using the market system?

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