CA Foundation · Business Economics

Business Economics

20 practice questions, each with the answer and an explanation.

Practise Business Economics now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 20 questions

  1. If the price elasticity of demand is greater than one, demand is
  2. A budget in which expenditure exceeds receipts is a
  3. Which of these is a determinant of the demand for a good, other than its price?
  4. At the equilibrium price in a market,
  5. A rise in the price of a good leads to a fall in the quantity demanded, other things equal. This is the
  6. Which of these is a fixed cost for a factory in the short run?
  7. Which feature is characteristic of perfect competition?
  8. Marginal cost is
  9. Which factor shifts the supply curve to the right?
  10. In which market structure is there a single seller of a product with no close substitutes?
  11. Which of these is a tool of monetary policy in India?
  12. Which of these goods is likely to have an inelastic demand?
  13. Demand-pull inflation is caused by
  14. The law of diminishing marginal utility states that
  15. GDP at market price minus depreciation gives
  16. Which curve shows the relation between the quantity of money and interest rates in the money market?
  17. When the price rises from Rs 10 to Rs 12, quantity demanded falls from 100 to 80 units. What is the price elasticity of demand (in absolute value)?
  18. When the price rises from Rs 50 to Rs 60, quantity demanded falls from 500 to 400 units. What is the price elasticity of demand (in absolute value)?
  19. When the price rises from Rs 5 to Rs 6, quantity demanded falls from 60 to 48 units. What is the price elasticity of demand (in absolute value)?
  20. When the price rises from Rs 20 to Rs 25, quantity demanded falls from 200 to 150 units. What is the price elasticity of demand (in absolute value)?

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