MCQOPTIONS
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MCQOPTIONS
This section includes 452 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Ricardian theory has _ countries and commodities |
| A. | 32 |
| B. | 23 |
| C. | 24 |
| D. | 22 |
| Answer» E. | |
| 2. |
No change in technology, no transport cost, constant returns to scale - these assumptions make the Comparative Cost advantage theory __ |
| A. | Dynamic |
| B. | Redundant |
| C. | Static |
| D. | Unacceptable |
| Answer» D. Unacceptable | |
| 3. |
An Indian farmer produces wheat without incurring cost of inputs alllsells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. Thebaker sells bread to consumers for Rs. 1,600. Total added is Rs. |
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» B. 2,200 | |
| 4. |
Piyush s mother is a teacher. She also teaches Piyush. How would you treat this white calculating national income and domestic income ? |
| A. | it will be included in the national income, but not in the domestic income. |
| B. | it will be included in the domestic income, but not in the national income. |
| C. | it will be included in domestic income as well as national income. |
| D. | it will neither be included in the domestic income nor in the national income. |
| Answer» E. | |
| 5. |
Restrictions imposed on the quantity of imports is _ . |
| A. | Surplus |
| B. | Quotas |
| C. | Balance |
| D. | Tariffs |
| Answer» C. Balance | |
| 6. |
Expenditure switching policy is also known as _ _ . |
| A. | Devaluation |
| B. | Revaluation |
| C. | Appreciation |
| D. | Depriciation |
| Answer» B. Revaluation | |
| 7. |
In BOP, total receipts must be equal to total _ . |
| A. | payment |
| B. | deficit |
| C. | income |
| D. | revenue |
| Answer» B. deficit | |
| 8. |
The current account in the balance of payments _ . |
| A. | is a total of all the visible items of trade |
| B. | includes merchandise trade and services |
| C. | always shows a surplus |
| D. | includes autonomous and accommodating flows |
| Answer» C. always shows a surplus | |
| 9. |
The objective of commercial policy is / are _ . |
| A. | increase trade relation |
| B. | endanger domestic market |
| C. | allow import of goods |
| D. | Restrict exports |
| Answer» E. | |
| 10. |
Look East Policy has now transformed into a _ _. |
| A. | Act European Policy |
| B. | Act East Policy |
| C. | Act West Policy |
| D. | East Asia Policy |
| Answer» C. Act West Policy | |
| 11. |
When total exports are more than total imports then current account of balance of payment is in _ . |
| A. | Deficit |
| B. | Balance |
| C. | Surplus |
| D. | Unequal |
| Answer» D. Unequal | |
| 12. |
Imposing of tariff, raises domestic prices causing fall in consumption of domestic goods is _ . |
| A. | Protective effect |
| B. | Revenue effect |
| C. | Consumption effect |
| D. | Terms of trade effect |
| Answer» D. Terms of trade effect | |
| 13. |
The main objective of trade barriers are _ . |
| A. | to discourage new industries domestically |
| B. | to reduce unnecessary imports |
| C. | to spend valuable foreign exchange |
| D. | To allow free trade |
| Answer» E. | |
| 14. |
Under IMF, the exchange rate system was _ |
| A. | gold standard |
| B. | currency board system |
| C. | dollarization |
| D. | EURO |
| Answer» B. currency board system | |
| 15. |
Exchange rate between two currencies is based on _ __ |
| A. | purchasing power of two currencies |
| B. | economic development of the two nation |
| C. | political stability in the two countries |
| D. | export - import in two countries |
| Answer» B. economic development of the two nation | |
| 16. |
Devaluation of a currency is brought about by the _ . |
| A. | World Bank |
| B. | Asian Development Bank |
| C. | International Finance Corporation |
| D. | Government |
| Answer» E. | |
| 17. |
Which of the following is not an assumption of the Purchasing Power Parity theory? _ |
| A. | There are no trade barriers between countries |
| B. | The price index for each of the two countries must be comprised of the same basket of goods |
| C. | All the prices should be indexed to the same year |
| D. | Changes in the exchange rate changes internal price level |
| Answer» E. | |
| 18. |
At present, European Union consist of _ member countries. |
| A. | 26 |
| B. | 27 |
| C. | 28 |
| D. | None of these above |
| Answer» D. None of these above | |
| 19. |
Consider the following statements and identify the right ones.i. National income is the monetary value of all final goods and services produced.ii. Depreciation is deducted from gross value to get the net value |
| A. | i only |
| B. | ii only |
| C. | both |
| D. | none |
| Answer» D. none | |
| 20. |
According to Keynes people demand money for purposes (motives): |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» D. 4 | |
| 21. |
in order to influence spending on goods and services in the short-run, monetary policy is directedat directly influencing... |
| A. | unemployment rates. |
| B. | inflation rates. |
| C. | interest rates. |
| D. | economic growth rates. |
| Answer» C. interest rates. | |
| 22. |
“Capitalism” refers to? |
| A. | The use of market |
| B. | Government ownership of capital |
| C. | Private ownership of capital goods |
| D. | Private ownership of homes & cars |
| Answer» D. Private ownership of homes & cars | |
| 23. |
Velocity of circulation of money means the number of times a unit of money |
| A. | Changes hands daily |
| B. | Changes hands monthly |
| C. | Changes hands annually |
| D. | Changes purchasing power |
| Answer» D. Changes purchasing power | |
| 24. |
It is assumption of quantity theory of money: |
| A. | Quantity of traded goods increases |
| B. | Velocity of circulation of money constant |
| C. | Govt. imposes new taxes |
| D. | (a) and (b) of the above |
| Answer» C. Govt. imposes new taxes | |
| 25. |
An Indian farmer produces wheat without incurring cost of inputs alllsells for Rs. 1,000 to a miller who grinds wheat into flour and sells for Rs 1,200 to baker. The baker sells bread to consumers for Rs. 1,600. Total added is Rs. |
| A. | 1,600 |
| B. | 2,200 |
| C. | 1,000 |
| D. | 1,400 |
| Answer» B. 2,200 | |
| 26. |
With increase in urbanization and industrialization, the role of Government started: |
| A. | Declining |
| B. | Increasing |
| C. | Stagnant |
| D. | Unstable |
| Answer» C. Stagnant | |
| 27. |
The quantity demanded of money rises: |
| A. | As the interest rises |
| B. | As the interest rate falls |
| C. | As the supply of money falls |
| D. | As the number of banks rises |
| Answer» C. As the supply of money falls | |
| 28. |
The difference between total expenditure and total receipts is |
| A. | Fiscal deficit |
| B. | Budget deficit |
| C. | Primary deficit |
| D. | Revenue deficit |
| Answer» C. Primary deficit | |
| 29. |
What will promote savings? |
| A. | Increase in credit facilities |
| B. | Increase in taxation |
| C. | Increase in personal incomes |
| D. | Rising prices |
| Answer» D. Rising prices | |
| 30. |
The role of Government would be highest in which of the following type of economy: |
| A. | Free market economy |
| B. | Keynesian Economy |
| C. | Mixed Economy |
| D. | Socialist Economy |
| Answer» E. | |
| 31. |
Which of following is not a capital good? |
| A. | Use of Machine tools |
| B. | Raw Material |
| C. | Advocate’s Services |
| D. | Heavy Machinery |
| Answer» D. Heavy Machinery | |
| 32. |
When aggregate economic activity is increasing, the economy is said to be in |
| A. | an expansion. |
| B. | a contraction. |
| C. | a peak. |
| D. | a turning point. |
| Answer» B. a contraction. | |
| 33. |
Treasury Bill is a document used for: |
| A. | A short-term loan to the exporter |
| B. | A long-term loan to the government |
| C. | A short-term loan to the government |
| D. | A short-term loan to a govt. employee |
| Answer» D. A short-term loan to a govt. employee | |
| 34. |
Intermediate goods are not included to calculate the final output because: |
| A. | they do not have value |
| B. | they have unknown value |
| C. | their value is included in final goods so they are not added to avoid the problem of double counting |
| D. | none of the above |
| Answer» D. none of the above | |
| 35. |
The most important source of revenue to the states is |
| A. | Sales tax |
| B. | Service tax |
| C. | Excise duty |
| D. | None of the above |
| Answer» B. Service tax | |
| 36. |
The multiplier effect is best described as: |
| A. | the increase in final income arising from any new injection of spending |
| B. | the increase in the expenditure of a country |
| C. | the increase in the public debt of a country |
| D. | the increase in investment of a country |
| Answer» B. the increase in the expenditure of a country | |
| 37. |
According to Keynes, motives for holding money are: |
| A. | Two |
| B. | Three |
| C. | Four |
| D. | Five |
| Answer» C. Four | |
| 38. |
When the nation's money supply is Rs. 1200 billion and GDP is Rs. 4800 billion, velocity of circulation money is: |
| A. | 0.25 |
| B. | 4 |
| C. | 0.4 |
| D. | 4 billion rupees |
| Answer» C. 0.4 | |
| 39. |
The opportunity cost of going to university is: |
| A. | The total spent on food, clothing, books, transportation, tuition, lodging and other expenses |
| B. | Zero for students who are fortunate enough to have all of their university expenses paid by someone else |
| C. | Zero, since a university education will allow a student to earn a higher income after graduation |
| D. | The value of the best opportunity a student gives up to attend university |
| Answer» E. | |
| 40. |
Liquidity of a monetary asset means: |
| A. | Velocity of circulation of money |
| B. | Easy availability of money |
| C. | Ready acceptability of monetary asset |
| D. | The monetary asset has lost it value |
| Answer» D. The monetary asset has lost it value | |
| 41. |
Subsidy implies Selling the product |
| A. | To the government at higher prices |
| B. | Below the cost of production. |
| C. | Selling the product at loss. |
| D. | Selling the product at cost plus indirect taxes. |
| Answer» C. Selling the product at loss. | |
| 42. |
If we put this letter in the blank space, we get quantity theory of money PY = M |
| A. | S |
| B. | T |
| C. | V |
| D. | A |
| Answer» D. A | |
| 43. |
Under normal circumstances, the velocity of circulation of money in a country is: |
| A. | 100% |
| B. | Negative |
| C. | Less than 10 |
| D. | Zero |
| Answer» D. Zero | |
| 44. |
Which of the following could be a reason for raising public loans by a country? |
| A. | Bringing gap between revenue and expenditure through temporary loans from central bank. |
| B. | To reduce depression in the economy and financing public works program. |
| C. | Financing the public sector for expanding and strengthening the public enterprises |
| D. | All of the above |
| Answer» E. | |
| 45. |
Value of money and supply of money are related: |
| A. | Inversely |
| B. | Directly |
| C. | Govt. law |
| D. | Are not related |
| Answer» B. Directly | |
| 46. |
According to Keynes, demand for money is affected by: |
| A. | Income |
| B. | Rate of interest |
| C. | Literacy rate |
| D. | Both (a) & (b) |
| Answer» E. | |
| 47. |
Public Debt means |
| A. | Borrowing by a Government from abroad and does not include borrowing from within the country |
| B. | Borrowing by general public, private individuals or association of individuals from the Government which they need to repay to Government under the prescribed terms and conditions |
| C. | Borrowing by General Public in the form of loans or advances from the Government, Local Bodies, Government owned financial institutions |
| D. | Borrowing by a Government from within the country or from abroad, from private individuals or association of individuals or from banking and non-banking institutions |
| Answer» E. | |
| 48. |
During inflation: |
| A. | Lenders lose, borrowers gain |
| B. | Borrowers lose, lenders gain |
| C. | Borrowers and lenders both lose |
| D. | All sections of the society gain |
| Answer» B. Borrowers lose, lenders gain | |
| 49. |
Debt obligations of the government that have maturities of one year or less is normally called |
| A. | Commercial Papers |
| B. | Commercial Deposits |
| C. | Treasury Bills |
| D. | Certificate of Deposits |
| Answer» D. Certificate of Deposits | |
| 50. |
In the long run, inflation is caused by |
| A. | aggressive labour unions. |
| B. | greedy monopolists. |
| C. | growth in the money supply. |
| D. | global warming. |
| Answer» D. global warming. | |