SYBCOM Business Economics MCQ with Answers: Mumbai University 2021
SYBCOM Business Economics MCQ with Answers
Which of the following measurements indicate how national income is distributed?
- GDP
- GNP
- Per Capita Income
- NNP
__________is a leakage from circular flow of aggregate income and expenditure.
- Export
- Tax
- Investment
- Public Expenditure
Green Gross Domestic Product is an index of__________.
- Loss of biodiversity
- Cost of climate change
- The environmental cost of economics activities
- All of the Above
Say’s Law of market states that____________.
- Demand creates its own supply
- Supply creates its own demand
- Demand is greater than supply
- Supply is greater than demand
When income equals consumption, saving will be__________.
- Positive
- Negative
- Zero
- Infinity
After reaching full employment, the aggregate supply curve becomes____________.
- Horizontal Straight Line
- Vertical Straight Line
- Upward Sloping
- Downward Sloping
The LM curve indicates___________equilibrium.
- Money Market
- Goods Market
- Foreign Market
- Labour Market
Supply-side economics aims at increasing government revenue by__________.
- Reducing taxes
- Increasing taxes
- Reducing Prices
- Increasing prices
During Inflation,_________gain.
- Debtors
- Creditors
- Fixed income earners
- Poor
Cost-push inflation is also known as___________.
- Wage push inflation
- Spiral inflation
- Supply-side inflation
- All of the above
During inflation RBI________Bank Rate and Cash Reserve Ratio.
- Increases
- Reduces
- Does not change
- None of the above
Scope of macroeconomics includes _____.
- Theory of income and employment
- Theory of general prices level
- Theory of economic growth
- All the above
Circular flow of income includes _____.
- Goods and services
- business firms
- households
- All the above
_________ serves as a useful yardstick to measure the annual performance of a country’s economy.
- National Income
- Per Capita Income
- Total Product
- National Consumption
There is no beginning or ending point in ___________.
- National Income
- Per Capita Income
- National Consumption
- Circular Flow
Y = C + S also means _____.
- Y = C + I
- C + S = C + I
- S = I
- All the above
National Income is the flow of goods and services produced in an economy in course of ________.
- a year
- a month
- six months
- None of the above
__________ items are not included in GNP.
- Buying and selling of securities, shares, bonds, etc.
- Government transfer payments
- Private transfer payments
- All the above
Green Accounting can play a crucial role in the __________.
- sustainable development
- economic development
- rural development
- urban development
J.B Say was __________.
- German economist
- French economist
- American economist
- Swiss economist
Trade cycles have different phases such as ____________.
- Prosperity, Recession, and Recovery.
- Prosperity, Depression, and Recovery.
- Prosperity, Recession, and Depression.
- All the above
The duration of trade cycles may vary from a minimum of______________.
- 2 years to a maximum of 12 years.
- 3 years to a maximum of 12 years.
- 1 year to a maximum of 12 years.
- 2 years to a maximum of 14 years.
On the basis of the size and composition of external debt, World Bank has classified India as_______.
- A less indebted country
- A heavily indebted country
- A moderately indebted country
- A severely indebted country
Internal debts can be raised through__________.
- RBI
- WTO
- IMF
- GRDs
Loans for which no promise is made by the government regarding their exact date of repayment are called___________.
- Redeemable debts
- Voluntary debts
- Irredeemable debts
- Productive debts
External loans can be raised from__________.
- RBI
- IMF
- SBI
- WTO
Progressive taxation______________.
- Increases inequality
- Reduces inequality
- No impact on income distribution
- Reduces Saving
Tax on rich and luxury goods will____________.
- Increase the investment
- Check inflation
- Check deflation
- Check Tax rate
Taxation is antiflationary if tax is imposed on____________.
- Essential items
- Luxuries
- Investment
- Durable items
Under monopoly the incidence of lump sum tax is______________.
- On the sellers
- On the buyers
- Partially on the sellers
- Partially on the buyers
When the supply is more elastic the burden of tax is_____________.
- More on the buyers
- More on the sellers
- Borne fully by the buyers
- Borne fully by the sellers
Incidence of tax refer to_____________.
- Immediate money burden
- Immediate real burden
- Indirect real burden
- Final money burden
The area to the left and above the LM curve represents____________.
- Excess Supply of Money
- Excess demand for Money
The area to the right and below the LM Curve indicates_____________.
- Excess Demand for Money
- Excess Demand for Goods
With a regressive tax, an income____________.
- Increases, the tax rate remains the same
- decreases, the tax rate decreases
- Increases, the tax rate increases
- Increases, the tax rate decreases
Which of the following is not a part of administrative revenues?
- Fees
- Special assessment
- Fines and penalties
- Surpluses of public enterprises
Which of the following are not canons of taxation?
- Canon of equity
- Canon of certainty
- Canon of benefit
- Canon of elasticity
Chairman of the 13’th Finance commission is___________.
- Pranab Mukherji
- K. C. Pant
- Vijay Kelkar
- K. C. Neogy
Which article states the list of taxes levied and collected by the Union but assigned to states?
- Article 272
- Article 270
- Article 268
- Article269
Which of the following is concerned with the division of economic responsibility between the Central and State Governments in India?
- Finance Commission
- Planning Commission
- NITI Ayog
- RBI
What is an appropriate budget picture during a recession?
- Balanced budget
- Neutral budget
- Surplus budget
- Deficit budget
The origin of term functional finance is attributed to____________.
- J. M. Keynes
- A. C. Pigou
- A. P. Learner
- Richard Musgrave
Which of the following does not form the basis of sound finance?
- Say’s Law
- Assumption of full employment
- Ricardian Equivalence Theorem
- Unbalance budget
The neo-Keynesian approach to public finance is called____________.
- Functional finance
- Global finance
- Aggregate demand
- Federal finance
In ________budget every programme has to be evaluate.
- Legislative
- Multiple
- Cash
- Zero-based
A budget in which revenue is greater than expenditure_____________.
- Balanced budget
- Deficit budget
- Surplus budget
- Revenue budget
FRBM Act was to reduce fiscal deficit to___________of GDP by 31st March 2009.
- 3%
- 5%
- 8%
- 9%
Zero based budget is concerned with__________.
- Past
- Future
- Present
- Economy
When expenditure exceeds total tax revenue, it is called ____________.
- Surplus budget
- Balanced budget
- Deficit budget
- National budget
Which of the following is not a characteristic of a tax?
- Has quid-pro-quo
- Is a compulsory payment
- Is not imposed as a penalty
- Involves sacrifice on part of the payer
Fiscal policy does not directly deal with___________.
- Taxation
- Public debt
- Money supply
- Public expenditure
The term Market failure refers to___________.
- A market that fails to allocate resources efficiently
- An unsuccessful product
- Cutthroat competition among firms
- A firm that is focused out of business because of losses
_________ goods are characterized by two important features, i.e. non-rival in consumption and non-excludability.
- Public goods
- Private goods
- Merit goods
- Agriculture goods
______________ is a concept in economic theory which describes the allocation of goods and services by a free market as not efficient.
- Market failure
- PPC
- Allocative efficiency
- Public good
The principle of maximum social advantage is the basic principle of_________.
- Micro Economics
- Fiscal Economics
- Macro Economics
- Environmental Economics
The logical starting point of Keynes’s theory of employment is __________.
- The principle of effective demand.
- Aggregate demand
- Aggregate supply
- None of the above
John Maynard Keynes is ___________.
- German economist
- Swiss Economist
- French Economist
- American economist
Rate of Interest (Ri) is determined by__________.
- Supply of Money and Demand for Money (Liquidity Preference).
- Supply of Money
- Demand for Money
- All the above
According to Keynes, Investment Expenditure is the main determinant of____________.
- The level of Employment.
- The level of Income
- The level of Investment
- The level of Saving
The consumption function or propensity to consume refers __________.
- to income saving relationship.
- to income investment relationship.
- to income consumption relationship.
- All the above
APC = _____.
- C/Y
- S/Y
- I/C
- C/S
MPC = _______.
- ΔC/ΔI
- ΔC/ΔS
- ΔS/ΔY
- ΔC/ΔY
Marginal efficiency of capital refers to ___________.
- the rate of profit expected
- the rate of investments made
- the rate of savings made
- none of the above
Multiplier K= __________.
- 1 / 1– MPC
- ΔS/ΔY
- I/C
- none of the above
The multiplier was developed earlier by ___________.
- R. F. Kahn
- J M Keynes
- Kurihara
- A.C. Pigou
The multiplier measures the change in income (and employment) as a certain multiple of the initial________.
- Change in Investment
- Change in Saving
- Change in Interest
- Change in Employment
The Keynesian multiplier is simply the reciprocal of the ___________.
- Marginal propensity to consume
- Marginal propensity to save
- MPC + MPS
- Marginal propensity to invest
Which of the following leads to leakages in the multiplier process?
- Increase in marginal propensity to consume
- Increase in marginal propensity to save
- Increase in government expenditure
- None of the above
Leakages in the multiplier is represented by __________.
- Savings
- Exports
- Profits
- All the above
Keynesian economics is___________.
- Microeconomics
- Macroeconomics
- Monetary economics
- Welfare economics
IS curve represents___________market.
- Goods
- Money
- Labour
IS curve indicates different combinations of__________and________where goods market clear.
- Income & interest rate
- Income and Employment
- Inflation and deflation
The LM curve represents_____________market.
- Goods
- Asset/Money
- Labour
The LM curve indicates different combination of_______and_____where money market clears.
- Income & interest rate
- Income and Employment
- Export and Import
IS curve slops_________.
- Upward
- Downward
- Vertical
The LM Curve Slops__________
- Upward
- Horizontal
- Vertical
Excess Demand for Goods (EDG) is found to the____________of IS curve.
- Left
- Right
- Above
Excess Supply for Goods (ESG) is found to be_________of the IS curve.
- Left
- Right
- Below
The term Functional Finance was introduced by __________.
- J. M Keynes
- Richard Musgrave
- Hugh dalton
- A. P Learner
Which of the following programmes protect the people’s right to work?
- Public Provident Fund
- Atal Pension Yojana
- MNREGA
- Pradhan Mantri Jan Dhan Yojna
Which of the following Canons of Public expenditure is very difficult to implement in developing countries?
- Canon of elasticity
- Canon of sanction
- Canon of surplus
- Canon of productivity
Which of the following type of public expenditure is characterized by a quid-pro-quo?
- Grant
- Subsidy
- Interest
- Purchase prices
Which of the following programmes will provide cashless treatment to patients?
- Atal Pension Yojna
- MNREGA
- Public provident fund
- Ayushman Bharat
Goods that are provided by both the public and private sectors are known as_________.
- Public goods
- Merit goods
- Social goods
- Demerit goods
After war, people’s tax tolerance level___________.
- Reduces
- Increases
- remains the same
- Becomes Zero
The Law of Increasing public activity was developed by ____________.
- Richard Musgrave
- Alan T. Peacock
- Hugh dalton
- Adolf Wagner
Public expenditure on education and health will have a __________effect on people’s ability to work.
- Negative
- Neutral
- Positive
- Stagnating
The Maximum Welfare Principle of Budget Determination is associated with__________.
- Hugh Dalton
- Paul Samuelson
- Edwin Seligman
- Richard Musgrave
The classical advocacy of a balanced budget is based on which of the following beliefs?
- Possibility of market failures
- Laissez Faire capitalism
- Redistribution of income
- Social justice objective of fiscal policy
Which of the following serves as a tool for fiscal management and accountability?
- Monetary policy
- Budget
- Foreign policy
- Industrial policy
Public Finance deals with which of the following aspect of government?
- Social
- Political
- Human
- Financial
According to the principle of Maximum Social Advantage, public expenditure is subject to __________.
- Diminishing Marginal Returns
- Diminishing Marginal Productivity
- Diminishing Marginal Utility
- Increasing Marginal utility
Which of the following is a characteristic of a direct tax?
- The impact and incidence are on the same person
- incidence may be shifted
- The greater burden on the poor than the rich
- A major source of revenue in a developing country
Indirect taxes have a/an _____ ____effect on the Society.
- Progressive
- Regressive
- Equitable
- Proportional
External loans can be raised form____________.
- RBI
- IMF
- SBI
- WTO
Principle of Sound Finance refers to __________.
- Maximum Government Spending
- Minimum Government Spending
- Revenue expenditure balanced at the minimum level
- The balance between tax and spending
A budget that mainly covers items of current revenue and expenditure is called __________.
- Programme budget
- Current budgeting
- Welfare economics
- Capital budgeting
_____________introduced the concept of production possibility curve.
- Prof. Alfred Marshall
- Prof. Paul Samuelson
- Prof. Baumol
- Prof. Peter Drucker
Phillips Curve explains relation between ___________.
- Inflation-employment Trade-Off
- Inflation-unemployment Trade-Off
- Inflation-poverty Trade-Off
- All the above
Stagflation is a situation of __________.
- high prices and unemployment
- low prices and unemployment
- high prices and underemployment
- None of the above
Underground Economy means _____________.
- Economy with black money
- Economy with underground dons
- Economy with underground politicians
- None of the above
Laffer curve shows that after a certain point, increase in tax rates, __________.
- can reduce tax revenue
- can increase tax revenue
- can stagnate tax revenue
- None of the above
The term ‘the supply of money’ is synonymous with such terms as __________.
- ‘money stock’
- stock of money
- money supply
- All the above
Money Supply M1 includes ___________.
- Ml = C + DD + OD
- Ml = C + DD + Time Deposits with the banks.
- Ml = C + DD + Deposits with post offices
- None of the above
Money Supply M3 includes ___________.
- M3 = C + DD + OD
- M3 = C + DD + Deposits with post offices
- M3 = M1 + Time Deposits with the banks
- None of the above
___________ is transferred from one person to another in a given period of time is known as “the velocity of circulation of money.”
- The maximum number of times money
- The average number of times money
- The minimum number of times money
- None of the above
According to Fisher’s Equation of quantity theory of money ________.
- MV = PT
- MP = PV
- MT = PV
- None of the above
According to cash balance equation of quantity theory of money __________.
- MP = kdY
- Md = kPY
- Mk = dPY
- All the above
Inflation is found____________.
- All over the world
- Only in developed countries
- Only in less developed countries
- All the above
For a common man inflation is__________.
- Rise in price
- Fall in price
- Both (a) and (b)
- None of the above
“Too much of money chasing too few goods” is definition of inflation given by___________.
- Crowther
- Coulbourn
- Samuelson
- J. M. Keynes
Demand-pull inflation is an inflation which results from an initial___________.
- Increase in the wage rate
- Increase in aggregate demand
- Increase in natural resource
- Decrease in aggregate demand
In hyperinflation there will be_____________.
- 10% increase in price per annum
- 05% increase in price per annum
- 15% increase in price per annum
- No upper limit of price rise
During Inflation gainers are____________.
- Common man
- Debtors
- Creditors
- All the above
During Inflation losers are___________.
- Common man
- Debtors
- Creditors
- None of the above
Inflation Targeting was first adopted by ___________in 1989.
- The Reserve Bank of New Zealand
- The Reserve Bank of New England
- The Reserve Bank of New America
- None of the above
The Reserve Bank of India (RBI) officially adopted Inflation Targeting (IT) as a monetary policy strategy in February _____.
- 2014
- 2016
- 2015
- 2017
Inflation targeting is a __________ where the central bank sets a specific inflation rate as its target or goal.
- Fiscal policy
- Monetary policy
- Administrative policy
- None of the above
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