MCQOPTIONS
Saved Bookmarks
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.
| 101. |
Which of the following are the causes of public debt of a country? |
| A. | War or war-preparedness, including nuclear programmes |
| B. | To cover the budget deficits on current account |
| C. | To undertake public welfare schemes |
| D. | All of the above |
| Answer» E. | |
| 102. |
Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this whitecalculating 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. | |
| 103. |
In the linear consumption function C = a + b(Y), coefficient ‘a’ denotes |
| A. | MPC |
| B. | APC |
| C. | Autonomous consumption |
| D. | Induced consumption |
| Answer» D. Induced consumption | |
| 104. |
Which is the characteristic of a good money: |
| A. | Has good design |
| B. | Has high value |
| C. | Has a fixed value in gold |
| D. | Is readily accepted by people |
| Answer» E. | |
| 105. |
In the equation MV = PY, V represents: |
| A. | Value of money |
| B. | Velocity of circulation of money |
| C. | Variation of nation income |
| D. | All of the above |
| Answer» C. Variation of nation income | |
| 106. |
Saving is a function of |
| A. | Export |
| B. | Import |
| C. | Investment |
| D. | Income |
| Answer» E. | |
| 107. |
Which of the following factors contribute to public debt of a country? |
| A. | To undertake public welfare |
| B. | Urge for economic growth |
| C. | Inefficiencies of public organisations and corruption |
| D. | All of the above |
| Answer» E. | |
| 108. |
Anything used as money must be: |
| A. | Fixed in value |
| B. | Fixed in supply |
| C. | Legal tender |
| D. | Readily acceptable |
| Answer» E. | |
| 109. |
Which people are most likely to gain during inflation? |
| A. | Those living on pension |
| B. | Those living on their savings |
| C. | Those who are repaying borrowed money |
| D. | Those who have lent money |
| Answer» D. Those who have lent money | |
| 110. |
Value of money means: |
| A. | Gold purchased by money |
| B. | General purchasing power of money |
| C. | Importance of money |
| D. | Demand for money |
| Answer» C. Importance of money | |
| 111. |
Inflation is a situation when: |
| A. | Prices of some goods rise |
| B. | General price level rises continuously |
| C. | Prices double every year |
| D. | Prices rise and fall |
| Answer» C. Prices double every year | |
| 112. |
Inflation can be controlled by applying: |
| A. | Monetary and fiscal policies |
| B. | Monetary and Labour policy |
| C. | Fiscal and commercial policies |
| D. | All of the above |
| Answer» B. Monetary and Labour policy | |
| 113. |
The macroeconomic models that are most supportive of the role of government policy aimed atsmoothing business cycles are |
| A. | real business cycle models. |
| B. | endogenous growth models. |
| C. | Keynesian models. |
| D. | growth models. |
| Answer» D. growth models. | |
| 114. |
Primarily, macroeconomists use microeconomic principles to study |
| A. | business cycles and trends in the stock market. |
| B. | long-run economic growth and antitrust policies. |
| C. | trends in the stock market and long-term economic growth. |
| D. | long-run economic growth and business cycles. |
| Answer» E. | |
| 115. |
An Indian farmer produces wheat without incurring cost of inputs all sells 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 | |
| 116. |
During business cycles the opposite of a trough is.. |
| A. | an inflation |
| Answer» E. | |
| 117. |
The two most important American business cycle events of the twentieth century were |
| A. | the Great Depression and stagflation. |
| B. | World War II and the Great Depression. |
| C. | the productivity slowdown and the Great Depression. |
| D. | government budget deficits and World War II. |
| Answer» C. the productivity slowdown and the Great Depression. | |
| 118. |
In the equation MV = PY, M represents: |
| A. | Money supply |
| B. | Money demand |
| C. | Maximum output |
| D. | Minimum output |
| Answer» B. Money demand | |
| 119. |
In a free market economy, self-interested individuals operate through a system of mutual interdependenceto promote the general benefit of society at large. Adam Smith referred this as: |
| A. | Invisible hand |
| B. | Direct Intervention |
| C. | Collective Spirit |
| D. | Private Spirit |
| Answer» B. Direct Intervention | |
| 120. |
Expenditure on defence, interest payments, law and order maintenance and public administration expensesare generally treated as: |
| A. | Productive Expenditure |
| B. | Unproductive Expenditure |
| C. | Growth-oriented Expenditure |
| D. | Progressive Expenditure |
| Answer» C. Growth-oriented Expenditure | |
| 121. |
The difference between revenue expenditure and revenue receipts is |
| A. | Revenue deficit |
| B. | Fiscal deficit |
| C. | Budget deficit |
| D. | Primary deficit |
| Answer» B. Fiscal deficit | |
| 122. |
The ratio of change in the national income in relation to the change in government spending that causes it isreferred to as: |
| A. | Fiscal Multiplier |
| B. | Spending Ratio |
| C. | Expenditure Ratio |
| D. | Cost Multiplier |
| Answer» B. Spending Ratio | |
| 123. |
A student records her income and spending for past month, she uses the function of money |
| A. | Medium of exchange |
| B. | Standard of deferred payments |
| C. | Store of value |
| D. | Unit of account |
| Answer» E. | |
| 124. |
Purchasing power of money during deflation is: |
| A. | Reduced |
| B. | Increased |
| C. | Constant |
| D. | Fluctuating |
| Answer» C. Constant | |
| 125. |
The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every______bank has to keep certain minimum cash reserves with RBI: |
| A. | public bank |
| B. | commercial bank |
| C. | industrial and agricultural banks |
| D. | none of these |
| Answer» C. industrial and agricultural banks | |
| 126. |
Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls thesupply of money, availability of bank credit and cost of money that is the rate of interest: |
| A. | central bank (rbi) |
| B. | sbi |
| C. | iba |
| D. | none of these |
| Answer» B. sbi | |
| 127. |
Keynes assumed the presence of --------- economy for the fundamental law ofconsumption |
| A. | capitalistic |
| B. | socialistic |
| C. | planned |
| D. | none of the above |
| Answer» B. socialistic | |
| 128. |
In the linear consumption function C = a + bY, coefficient ‘a’ denotes |
| A. | mpc |
| B. | apc |
| C. | autonomous consumption |
| D. | induced consumption |
| Answer» D. induced consumption | |
| 129. |
In the saving function S = -a + (b)Y, the term ‘b’ denotes |
| A. | saving |
| B. | mpc |
| C. | mps |
| D. | aps |
| Answer» C. mps | |
| 130. |
“Supply creates its own demand “is a law of: |
| A. | investment |
| B. | inflation |
| C. | consumption |
| D. | market |
| Answer» E. | |
| 131. |
Excess demand for money, according to Say’s law in the Economy: |
| A. | is greater |
| B. | is very less |
| C. | is equal to zero |
| D. | there is no relationship between excess demand for money and say’s law |
| Answer» E. | |
| 132. |
Piyush’s mother is a teacher. She also teaches Piyush. How would you treat this whitecalculating 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. | |
| 133. |
Which of the following is a synonym of “Undistributed Profits”? |
| A. | savings of private corporate sector |
| B. | reserves and surplus |
| C. | retained earnings |
| D. | all of these |
| Answer» E. | |
| 134. |
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 | |
| 135. |
Output means. ……………unless stated otherwise |
| A. | gross output at mp (gdpmp) |
| B. | net output at mp |
| C. | gross output at fc |
| D. | none |
| Answer» B. net output at mp | |
| 136. |
If the contribution of the agricultural sector is decreasing in a country's economy, then whatconclusion can be drawn? |
| A. | the country is growing in the direction of being a developed nation |
| B. | the country is moving towards becoming developing nation |
| C. | the country is moving towards becoming less developed nation |
| D. | the economic growth rate of the country has stopped |
| Answer» B. the country is moving towards becoming developing nation | |
| 137. |
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 | |
| 138. |
The term ‘macro’ has been derived from-------------- |
| A. | greek word ‘makros’ which means large |
| B. | english word ‘makros’ which means large |
| C. | greek word ‘makros’ which means small |
| D. | french word ‘makros’ which means large |
| Answer» B. english word ‘makros’ which means large | |
| 139. |
Statistics such as GDP, the unemployment rate, the rate of inflation and the trade balanceare: |
| A. | macro, since they tell us something about the entire economy |
| B. | neither macro nor micro, but properly in the realm of political science |
| C. | both micro and macro |
| D. | micro, since they affect individual households and firms |
| Answer» B. neither macro nor micro, but properly in the realm of political science | |
| 140. |
Macroeconomics as a separate branch came to be studied after the contributions of whicheconomist? |
| A. | adam smith |
| B. | john maynard keynes |
| C. | f. hayek |
| D. | samuelson |
| Answer» C. f. hayek | |
| 141. |
Which of the following is not an argument for protectionism . |
| A. | to protect infant industries |
| B. | to increase the level of imports |
| C. | to protect small industries |
| D. | to improve the balance of payments |
| Answer» C. to protect small industries | |
| 142. |
Transaction in which currencies to be exchanged the next day of the transaction is known as |
| A. | value today |
| B. | ready transaction |
| C. | spot transaction |
| D. | value tomorrow |
| Answer» E. | |
| 143. |
Which of the following is NOT an assumption of Comparative Cost Advantage Theory? |
| A. | Perfect Competition |
| B. | Increasing return to scale |
| C. | Perfect Mobility of labor within countries |
| D. | Homogenoeus labor |
| Answer» C. Perfect Mobility of labor within countries | |
| 144. |
Px / Pm is |
| A. | Gros barter terms of trade |
| B. | Net Barter terms oftrade |
| C. | Terms of trade |
| D. | Commodity terms of trade |
| Answer» D. Commodity terms of trade | |
| 145. |
Factor abundance can be explained using |
| A. | Demand curve |
| B. | Supply curve |
| C. | Tangent |
| D. | PPC |
| Answer» E. | |
| 146. |
Under managed float, the central bank of a nation intervenes to_ _ foreign currency. |
| A. | only purchase |
| B. | only sell |
| C. | purchase and sell |
| D. | auction |
| Answer» B. only sell | |
| 147. |
Pick out the one which is not true of GATS : |
| A. | Services and service activities are covered under GATS |
| B. | National treatment to members |
| C. | No market access to service supplier’s |
| D. | No discrimination between service suppliers |
| Answer» D. No discrimination between service suppliers | |
| 148. |
The offer curve of a country is based on |
| A. | Relative prices |
| B. | Price of exports |
| C. | Price of imports |
| D. | Volume of exports |
| Answer» B. Price of exports | |
| 149. |
_ term long run disequilibrium as fundamental disequilibrium . |
| A. | IMF |
| B. | UN |
| C. | WTO |
| D. | World Bank |
| Answer» B. UN | |
| 150. |
_ is the opposite of hedging. |
| A. | Arbitrage |
| B. | locking |
| C. | speculation |
| D. | blocking |
| Answer» D. blocking | |