SYBCOM Business Economics MCQ

SYBCOM Business Economics MCQ

Business Economics MCQ with Answers Click Here

Choose the right answer from the given option

…….. is a leakage from the circular flow of aggregate income and expenditure

• Exports (b) Tax  (c) Investment    (d) Public Expenditure

Green Gross Domestic Product is an index of………

• Loss of biodiversity
• Cost of climate change
• Environmental costs of economic activities
• All the above

Says Law of market states that……

• Demand creates its own supply
• Supply creates its own supply
• Demand is greater than supply
• Supply is greater than demand

When income equals consumption, savings 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 inflations, …………… gain

• Debtors
• Creditors
• Fixed income earners
• Poor

Cost-push inflation is also known as ……………

• Wage push inflation
• Spiral inflation
• Supply-side inflation
• All the above

During, RBI …………. bank rate and cash reserve ratio

• Increases
• Reduces
• Does not change
• None of the above

Macroeconomics is not concerned with …………..

• National income accounting
• International trade
• Inflation
• Equilibrium of an individual firm

Full employment is a normal situation according to ……………

• Multiplier theory
• IS-LM Model
• Say’s Law of market
• None of the above

When income increases consumptions will increase to ……………. Proportions

• Greater
• Lesser
• Constant
• None of the above

Higher the value of ……………..higher will be the value of multiplier

• Average propensity to consume
• Marginal propensity to consume
• Average propensity to save
• Marginal propensity to save

Laffer curve explains the relationship between ……………..

• Tax rate and tax revenue
• Inflation and wage rate
• Interest rate and investment
• Income and saving

Stagflation arises due to ……………

• Rise in the price of crude oil
• Rise in cost of productions
• Provision of more subside
• All of the above

Money supply will increase when there is ……………

• Increase in CRR and SLR
• A decrease in CRR and SLR
• A surplus budget
• A rise in public debt

Demand for transactionary motive and precautionary motive mainly depends upon ……………

• Level of income
• Rate of interest
• Investment
• Tax rate

The cash balance approach is based on ………………. Function/functions of money

• Medium of exchange
• Measure of value
• Medium of exchange and store of value
• Standard of deferred payment

Level of investment in an economy demands upon ………….

• Price level
• Rate of inflation
• MEC and rate of interested
• Fiscal deficit

1. PP curve is illustrated to explain………   a) Economic efficiency b) Public goods c) Government policy     d) all of the above
2. Which is indirect tax……….  a) Corporate Income Tax b) Capital gains tax c) Custom Duty       d) Gift tax
3. In case of the forward shifting of tax burden it lies on……. a) Producer b) Consumer c) Worker        d) All of the above
4. Which is not the Canon of public expenditure……..  a) Surplus b) Sanction c) Economy     d) Convenience
5. Revenue expenditure do not include……..  a) Interest payment b) Subsidies c) Debt repayment           d) Expenditure on civil administration
6. Public finance is a………   a) Social science b) Physical science c) Political science       d) None of these
7. Taxes are subject to increasing……….  a) Marginal Social Sacrifice b) Marginal Social Benefit c) Both (a) and (b)    d) None of these
8. A special levy means……..   a) Text on all people b) Charges for specific benefits c) Gift tax        d) None of these
9. Public expenditure should be encouraged to reduce……..   a) Production b) Employment c) Income inequality    d) Deficit financing
10. Sound finance follows…….  a) Balance budget b) Balance budget c) Unified budget d) Multiple budgets
11. National income is the flow of goods and services produced in an economy in a course of…….  a) A year b) a month c) 6-month d) None of the above
12. At peak……….   a) Prosperity begins b) Recession end c) Prosperity end          d) Depressions ends
13. Green accounting can play a crucial role in the…….  a) Sustainable development b) Economic development  b) Rural development d) Urban Development
14. The chief of the concept of functional finance is…….  a) AP learner b) JM Keynes c) Huge Dalton   d) None of the above
15. Incidence of taxation means……. a) Initial burden b) Shifting c) Final burden            d) None of the above
16. The classical theory of international trade is based on the assumption of……….  a) Money cost differences b) law of returns   c) Elasticity of demand d) Labour cost of production
17. The logical starting point of Keynes theory of employment is……..  a) The principle of effective demand b) Aggregate demand  c) Aggregate supply d) None of the above
18. Inflation targeting is a…..where the central bank sets a specific inflation rate as the target or goal.  a) Fiscal policy b) Monetary policy c) Administrative policy               d) None of the above
19. Keynesian Economics is………  a) Microeconomics b) Macroeconomics c) Monetary economics           d) Welfare economics
20. During inflation gainers are………..   a) Common man b) Debtors c) Creditors      d) All of the above

Business Economic Notes Click Here

Reference: Smart Notes, Manan Prakashan