Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. During the recessionary phase of a business cycle
a. The natural rate of unemployment will increase dramatically
b. Potential national income will exceed actual national income
c. Actual national income will exceed potential national income
d. The real rate of interest will exceed the nominal rate of interest.
Q. The Philips curve shows that
a. High unemployment rates are associated with low increases in money wage rates
b. Low unemployment rates are associated with low rates of inflation
c. High unemployment rates are associated with low rates of inflation
d. High inflation rates are associated with small increases in money wage rates.
Q. Full employment exists when there is
a. Zero unemployment
b. Natural rate of unemployment
c. Least demand for labor
d. Least supply of labor
Q. Balance of trade is
a. The difference between balance on current account and capital account
b. Same as the balance of merchandize trade
c. Same as the balance of current account
d. Overall BoP balance.
Q. All entries in the balance of payments should collectively sum to
a. GDP of that country
b. GNP of that country
c. Zero
d. Exports of that country.
Q. In the BoP statement, current account includes(i) Marchandize, invisible items (ii) Government loans from abroad (iii) Foreign direct investment.
a. (i) only
b. Both (i) and (ii) above
c. Both (i) and (iii) above
d. Both (ii) and (iii) above
Q. If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then
a. It is a case of BoP surplus
b. It is a case of BoP surplus where the official reserve account is in surplus
c. It is a case of BoP deficit
d. It is case of BoP disequilibrium
Q. The four main approaches to organisations and management are……..
a. contingency, social action, scientific management and classical
b. classical, human relations, bureaucracy and social action
c. human relations, social action, contingency and scientific management
d. classical, human relations, systems and contingency
Q. Which of the following transactions is included in the current account balance of the Balance of payments statement?
a. Foreign direct investments.
b. Portfolio investments.
c. External commercial borrowings.
d. Dividends earned on portfolio investments
Q. Personal taxes in India best illustrates a
a. Proportional tax system
b. Progressive tax system
c. Indirect tax system
d. Value added tax system
Q. In the Union Budget, profits from public sector undertakings are taken under
a. Revenue receipts
b. Capital receipts
c. Monetized receipts
d. Planned expenditure
Q. Marginal product is………….
a. Rate at which total production changes with change in variable input
b. Rate at which total production changes with change in total cost
c. Rate at which total production changes with change in fixed cost
d. None
Q. Law of variable proportion applies…………….
a. When all inputs are variable
b. When all input are fixed
c. Some inputs are fixed and some are variable
d. All the three
Q. Law of returns to scale applies when………
a. All inputs cost are variable
b. All input cost are fixed
c. All cost are partly fixed and partly variable
d. None