McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) .
Chapters
| 101. |
What is Cost-Push inflation? |
| A. | increasing money supply |
| B. | increasing indirect tax |
| C. | population increase |
| D. | expenditure increase unnecessarily. |
| Answer» B. increasing indirect tax | |
| 102. |
Inflation is the state in which .............................. |
| A. | the value of money decreases |
| B. | the value of money increases |
| C. | the value of the money increases first and then decreases |
| D. | the value of money decreases first and increases later |
| Answer» A. the value of money decreases | |
| 103. |
Which of the following class will not be negatively affected by the higher inflation? |
| A. | the consumer class |
| B. | the debtor class |
| C. | pensioner class |
| D. | business class |
| Answer» D. business class | |
| 104. |
Which of the following is an effect of inflation? |
| A. | erosion in purchasing power |
| B. | affects relative price of goods |
| C. | increase in inequalities of income |
| D. | all the above |
| Answer» D. all the above | |
| 105. |
The trough of a business cycle occurs when _____ hits its lowest point. |
| A. | inflation |
| B. | the money supply |
| C. | aggregate economic activity |
| D. | the unemployment rate |
| Answer» C. aggregate economic activity | |
| 106. |
. 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» A. an expansion. | |
| 107. |
In a boom: |
| A. | unemployment is likely to fall |
| B. | prices are likely to fall |
| C. | demand is likely to fall |
| D. | imports are likely to fall |
| Answer» A. unemployment is likely to fall | |
| 108. |
Peaks and troughs of the business cycle are known collectively as |
| A. | volatility. |
| B. | turning points. |
| C. | equilibrium points. |
| D. | real business cycle events. |
| Answer» B. turning points. | |
| 109. |
When aggregate economic activity is declining, the economy is said to be in |
| A. | a contraction. |
| B. | an expansion. |
| C. | a trough. |
| D. | a turning point. |
| Answer» A. a contraction. | |
| 110. |
Industries that are extremely sensitive to the business cycle are the |
| A. | durable goods and service sectors. |
| B. | nondurable goods and service sectors. |
| C. | capital goods and nondurable goods sectors. |
| D. | capital goods and durable goods sectors. |
| Answer» D. capital goods and durable goods sectors. | |
| 111. |
Economists use the term shocks to mean |
| A. | unexpected government actions that affect the economy. |
| B. | typically, unpredictable forces that have major impacts on the economy. |
| C. | sudden rises in oil prices. |
| D. | the business cycles. |
| Answer» B. typically, unpredictable forces that have major impacts on the economy. | |
| 112. |
The government spending multiplier is as higher as: |
| A. | higher is the government spending |
| B. | higher is the mpc |
| C. | lower is the mpc |
| D. | lower is the tax revenue |
| Answer» B. higher is the mpc | |
| 113. |
Point out which of the following is not an instrument of fiscal policy: |
| A. | an increase in the interest rate |
| B. | a cut in unemployment compensation |
| C. | an increase in tobacco taxes |
| D. | a cut in the marginal rates of irpf |
| Answer» A. an increase in the interest rate | |
| 114. |
The function of investment spending shifts to the left if: |
| A. | the interest rate rises |
| B. | the interest rate falls |
| C. | business expectations improve |
| D. | business expectations get worse |
| Answer» D. business expectations get worse | |
| 115. |
An increase in the interest rate1 |
| A. | shifts the aggregate demand curve to the left |
| B. | shifts the aggregate demand curve to the right |
| C. | has no effect |
| D. | moves the economy along the aggregate demand curve |
| Answer» A. shifts the aggregate demand curve to the left | |
| 116. |
As higher is the MPS |
| A. | lower is the multiplier. |
| B. | higher is the investment spending |
| C. | higher is the equilibrium income. |
| D. | all the answers are right |
| Answer» A. lower is the multiplier. | |
| 117. |
To increase the money supply, the bank central could: |
| A. | cut taxes |
| B. | purchase bonds in the open-market |
| C. | encourage people to held more cash (currency in circulation) |
| D. | increase the government spending |
| Answer» B. purchase bonds in the open-market | |
| 118. |
The variable that connect the market of money and the market of goods via investment spending is: |
| A. | the mpc |
| B. | the interest rate |
| C. | the mps |
| D. | the cpi |
| Answer» B. the interest rate | |
| 119. |
Point out the monetary policy instrument: |
| A. | an increase in direct taxes |
| B. | open-market operations |
| C. | freezing pensions |
| D. | a cut in government purchase of goods and services |
| Answer» B. open-market operations | |
| 120. |
Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls the supply 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» A. central bank (rbi) | |
| 121. |
_______controls the supply of money and bank credit: |
| A. | rbi |
| B. | indian banking association |
| C. | sebi |
| D. | none of these |
| Answer» A. rbi | |
| 122. |
The main objective of monetary policy in India is_______: |
| A. | growth with stability |
| B. | reduce poverty and achieve stability |
| C. | overall monetary stability |
| D. | none of these |
| Answer» A. growth with stability | |
| 123. |
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» B. commercial bank | |
| 124. |
If RBI wants to increase the credit flow it buys ______: |
| A. | government securities |
| B. | shares and debentures |
| C. | other local and short-term securities |
| D. | none of these |
| Answer» A. government securities | |
| 125. |
Trade between two countries is called |
| A. | Internal trade |
| B. | Intra-Country trade |
| C. | Intra-State Trade |
| D. | International Trade |
| Answer» D. International Trade | |
| 126. |
According to Classical economists, _ is the reason for a country to specialie in the production of a commodity |
| A. | Internalisation |
| B. | Cost differences |
| C. | International Division of labor |
| D. | Special Commodities |
| Answer» C. International Division of labor | |
| 127. |
International trade is the result of an advantage country possesses in producing a particular commodity at a _ |
| A. | Lower Cost |
| B. | Equal cost |
| C. | Higher cost |
| D. | Constant Cost |
| Answer» A. Lower Cost | |
| 128. |
Absolute difference in Cost is explained by |
| A. | David Ricardo |
| B. | Adam Smith |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» B. Adam Smith | |
| 129. |
According to Adam Smith, international trade is advantageous for all participating countries only if they enjoy _ difference in cost of production |
| A. | Comparative |
| B. | Equal |
| C. | Absolute |
| D. | Unequal |
| Answer» C. Absolute | |
| 130. |
Who aid the following, " The esence of international trade is not the absolute difference in cost but a comparative difference in cost." |
| A. | Adam Smith |
| B. | David Ricardo |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» B. David Ricardo | |
| 131. |
Ricardian theory has _ countries and commodities |
| A. | 32 |
| B. | 23 |
| C. | 24 |
| D. | 22 |
| Answer» D. 22 | |
| 132. |
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» B. Increasing return to scale | |
| 133. |
Comparative Advantage is expressed in _ |
| A. | Absolute Cost |
| B. | Variable cost |
| C. | Cost ratios |
| D. | Marginal Cost |
| Answer» C. Cost ratios | |
| 134. |
England 1 unit wine =1/2unit cloth, Portugal 1 unit wine = 1 unit cloth. This is an example of |
| A. | Comparative Cost |
| B. | Absolute Cost |
| C. | Relative Cost |
| D. | Unequal Cost |
| Answer» A. Comparative Cost | |
| 135. |
Comparative Advantage theory is based on _ value |
| A. | Cost theory |
| B. | Productivity theory |
| C. | Quality theory |
| D. | labor theory |
| Answer» D. labor theory | |
| 136. |
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» C. Static | |
| 137. |
If a country enjoys an absolute advantage in the production of all commodities then also trade is possible”. Who said this? |
| A. | Adam Smith |
| B. | David Ricardo |
| C. | J.S.Mill |
| D. | Alfred Marshall |
| Answer» B. David Ricardo | |
| 138. |
According to H-O theory, International trade is, but a pecial case of _ _ trade. |
| A. | Inter-state |
| B. | Intra state |
| C. | Intra-Country |
| D. | Inter-regional |
| Answer» D. Inter-regional | |
| 139. |
H-o Theory s based on value theory. |
| A. | Partial |
| B. | Semi-partial |
| C. | General |
| D. | Semi-General |
| Answer» C. General | |
| 140. |
H-O Theory is a _ _ model |
| A. | 1 X 1 X 1 |
| B. | 2 X 2 X 2 |
| C. | 3 X 3 X 3 |
| D. | 4 X 4 X 4 |
| Answer» B. 2 X 2 X 2 | |
| 141. |
Commodity Y is Capital intensive if _ _ |
| A. | Ky / Ly = Kx / Lx |
| B. | Ky / Ly < Kx /Lx |
| C. | Ky /Ly > Kx / Lx |
| D. | Ky > Kx |
| Answer» C. Ky /Ly > Kx / Lx | |
| 142. |
If,England 1 wine = 1/2 cloth and if Portugal 1 wine = 1 cloth, this I an example of |
| A. | Comparative advantage |
| B. | Absolute Advantage |
| C. | Similar Cost |
| D. | Unequal Cost |
| Answer» A. Comparative advantage | |
| 143. |
If Commodity Y requres 2 units of capital and 2 units of labor and commodity X requires 1 unit of capital and 4 units of labor then Y is |
| A. | Labor intenive |
| B. | Labor specific |
| C. | Capital Intensive |
| D. | Capital Specific |
| Answer» C. Capital Intensive | |
| 144. |
Factor intensity is measured in _ terms |
| A. | Absolute Cost |
| B. | Factor ratios |
| C. | Relative Cost |
| D. | Frequency of capital labor |
| Answer» B. Factor ratios | |
| 145. |
Total amount of labor in Nation 1 is greater than labor in nation 2 if |
| A. | TK1 /TL1 > TK2 /TL2 |
| B. | TK1 / TL1 < TK2 /TL2 |
| C. | TK1 /TL1 = TK2/TL2 |
| D. | TL1 > TL2 |
| Answer» A. TK1 /TL1 > TK2 /TL2 | |
| 146. |
Factor abundance can be explained using |
| A. | Demand curve |
| B. | Supply curve |
| C. | Tangent |
| D. | PPC |
| Answer» D. PPC | |
| 147. |
A nation is capital abundant if |
| A. | PK1/PL1 < PK2/PL2 |
| B. | PK1/PL1 >PK2/PL2 |
| C. | PK1/PL1 = PK2/PL2 |
| D. | PK1 < PK2 |
| Answer» B. PK1/PL1 >PK2/PL2 | |
| 148. |
Abundance of a factor makes it |
| A. | Easy |
| B. | More |
| C. | Expensive |
| D. | Cheap |
| Answer» D. Cheap | |
| 149. |
r1 / w1 < r2 / w2 means |
| A. | Nation 1 is capital abundant |
| B. | Nation 1 is labor abundant |
| C. | Nation 2 is capital abundant |
| D. | Nation 2 has high wages |
| Answer» A. Nation 1 is capital abundant | |
| 150. |
The rate at which goods are exchangeed between two countries is called |
| A. | Import price |
| B. | Export rate |
| C. | Foreign exchange |
| D. | Terms of trade |
| Answer» D. Terms of trade | |
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