Commerce MCQs

Multiple choice questions of Subject Commerce Multiple Choice Questions on Industrial Policy | Five Year Plan MCQ pdf ( Multiple Choice Questions on Industrial Policy | Five Year Plan MCQ pdf Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Multiple Choice Questions on Industrial Policy | Describe the industrial policy 1991 towards the public sector

1. Which one among the following Five Year Plans of Indian economy diversified the planning shifting focus from heavy and basic industries to new sunrise industries like telecommunication, computers, electronics?

(a) 2nd Five Year Plan

(b) 4th Five Year Plan

(d) 9th Five Year Plan

(c) 7th Five Year Plan

Ans. c

2. In which of the following industries, enterprise’s investment in plant and machinery is upto ? 25 lakh?

(a) Small-scale industries

(b) Ancillary industry

(c) Tiny enterprises

(d) Small-scale service enterprises

Ans. c

3. Statement I Exports from SEZ have grown more than 2000% from 2003-04 to 2010-11.

Statement II FDI is allowed in SEZ under automatic route.

Codes (a) Statement I is true but statement II is false

(b) Statement Il is true but statement I is false

(c) Both statements are true

(d) Both statements are false

Ans. a

4. What do you mean by DGTD?

(a) Director General of Trade Development

(b) Director General of Total Development

(c) Director General of Technical Development

(d) None of the above

Ans. c

5. Assertion (A) NIMZS are integrated industrial townships with world class social and physical infrastructure.

Reason (R) National Investments and Manufacturing Zones (NIMZS) will be established on lands which are degraded and uncultivable.

Codes (a) Both A and

(b) A is false but R is true

(c) Both A and R are true are false

(d) A is true but R is false

Ans. c

6. The national development council committee on backward areas was constituted in September

(a) 1963

(c) 1968

(b) 1964

(d) 1969

Ans. d

7. Which one of the following economists proposed the LPG model of economic development in India?

(a) Dr C Rangarajan

(b) Dr Montek Singh Ahluwalia

(c) Dr Amartya Sen

(d) Dr Manmohan Singh

Ans. d

8. In the context of India’s Five Year Plans, a shift in pattern of industrialisation with lower emphasis on the heavy industry and move on infrastructure begins in

(a) 4th Plan

(c) 8th Plan

(b) 6th Plan

(d) 10th Plan

Ans. b

9. The headquarter of ILO is at

(a) Washington

(c) The Hague

(b) Geneva

(d) Manila

Ans. b

10. Which one of following is not an immediate indicator of industrial sickness?

(a) Drop in profitability

(b) Labour unrest

(c) Shrinking of market credit

(d) Decline in market share

Ans. d

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Multiple choice questions of Subject Commerce MCQs Topic Foreign Trade of India MCQ pdf | International Trade ( Foreign Trade of India MCQ pdf | International Trade Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

Foreign Trade of India MCQ pdf | MCQ with answers on international trade for online test

1. Foreign Direct Investment (FDD) is investment directly into production in a country by a company Jocated in another country, then which one of the following modes is/are correct about the FDI?

(a) Buying a company in the target country

(b) Expanding operations of an existing business in that Country

(c) Investing in the shares and stocks of a company in the target country

(d) Both ‘a’ and ‘c

Ans. d

2. Which one of the following percentages is the share of the Indian Export in the International Trade?

(a) Less than 1%

(b) More than 1, but less than 3%

(c) More than 3, but less than 5%

(d) More than 5, but less than 7%

Ans. b

3. Foreign exchange and foreign currency in India are governed by

(a) SCRA Act

(c) FEMA Act

(b) Banking Regulation Act

(d) SEBI Act

Ans. c

4. Consider the following statements.

1. India has started the Duty Free Tariff Preference (DFTP) scheme with highly developed countries.

2. Under DFTP Scheme, the beneficiary countries have to submit to the Government of India letters of intent and details of officials authorised to issue the certificates of origin.

Which of the statements given above is/are correct?

(a) Only 1

(c) Both 1 and 2

(b) Only 2

(d) Neither 1 nor 2

Ans. b

5. With reference to Asian Development Bank, consider the following statements.

1. United States has the largest proportion of shares for the voting system.

2. China and India have the same percentage of shares for the voting system.

Which of the statements given above is/are correct?

(a) Only 1

(c) Both 1 and 2

(b) Only 2

(d) Neither 1 nor 2

Ans. d

6. In the context of the bilateral trade negotiation between India and European Commission and European Council

1. European Commission represents the EU in the trade negotiation whereas European Council participates in the legislation of matters pertaining to economic policies of the EU.

2. European Commission comprises the head of States Government of member countries whereas the European Council comprises the persons nominated the European Parliament.

Which of the statements given above is/are correct?

(a) Only 1

(c) Both 1 and 2

(b) Only 2

(d) Neither 1 nor 2

Ans. d

7. Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in country.

Which one of the following statements be represents an important difference between the two?

(a) Fil helps bring better management skills and technology while FDI brings only capital

(b) FIl helps in increasing capital availability in general, while FDI anly targets specific sectors

(c) FDI flows only into the secondary market, while FIl targets primary market

(d) FIl is considered to be more stable than FDI

Ans. b

8. Consider the following statements.

1. India-Japan Comprehensive Economic Partnership Agreement (CEPA) is the India’s third CEPA after Singapore and Korea.

2. India-Japan Comprehensive Economic Partnership Agreement (CEPA) is the India’s first with a developed country.

Which of the statements given above is/are correct?

(a) Only 1

(c) Both 1 and 2

(b) Only 2

(d) Neither 1 nor 2

Ans. a

9. With consider the following statements.

1. On an average, UAE has the high total trade share with India in the five years.

2. China has more total trade share with India than the United States in the five years. reference to India’s International Trade,

Which of the statements given above is/are correct?

(a) Only 1

(c) Both 1 and 2

(b) Only 2

(c) Neither 1 nor 2

Ans. c

10. Consider the following statements.

1. India’s Trade Policy Review (TPR) is carried out every four years.

2. WTO has a mechanism for regular review of the trade policies of member countries.

Which of the statements given above is/are correct?

(a) Only 1

(c) Both 1 and 2

(b) Only 2

(d) Neither 1 nor 2

Ans. c

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Multiple choice questions of Subject Commerce Money and Banking Class 12 MCQ ( Money and Banking Class 12 MCQ Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Money and Banking Multiple Choice Questions and Answers

1. Money supply is governed by

(a) planning commission

(c) finance ministry

(b) Central Bank

(d) commercial banks

Ans. b

2. If the demand for money is perfectly interest inelastie, the LM schedule will be

(a) upward sloping

(c) horizontal line

(b) downward sloping

(d) vertical line

Ans. d

3. The transaction version of the quantity theory of money was presented by Irving Fisher in the form of

(a) P= MV /T

(c) M= PV/T

(b) T=MV /P

(d) V= PT/M

Ans. a

4. Monetarist says

(a) an increase in the money supply is likely to lead to inflation

(b) a monetary stimulus is ineffective if firms costs of production also rises

(C) long-run aggregate supply curve is vertical at the level of natural rate of unemployment

(d) All of the above

Ans. d

5. Money kept for speculative motive is called

(a) active money

(c) near money

(b) passive money

(d) dear money

Ans. b

6. According to Keynes, with cash money. is the reward for parting

(a) profit

(c) interest

(b) rent

(d) None of these

Ans. c

7. If the demand for money depends on the interest rate, the velocity of circulation is

(a) constant and the quantity theory of money does hold

(b) not constant and the quantity theory of money does hold

(c) not constant and the quantity theory of money does not hold

(d) constant and quantity theory of money does not hold

Ans. c

8. Lower interest rates

(a) reduce business investment spending

(b) cause the aggregate demand curve to shift left

(c) encourage people to borrow more and often to spend more on housing

(d) None of the above

Ans. c

9. Unlike Fisher’s transaction equation, neo-classical monetary theory links prices to

(a) supply of money

(b) demand for money

(c) quantity of money in bank

(d) None of these

Ans. b

10. Which one of the following is not a function of money?

(a) Medium of exchange

(b) Means of barter

(c) Standard of deferred payment

(d) Store of value

Ans. b

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Multiple choice questions of Subject Commerce Solved MCQs of Macroeconomics pdf | Theory of Income, Employment, Inflation ( Solved MCQs of Macroeconomics pdf | Theory of Income, Employment, Inflation Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Solved MCQs of Macroeconomics pdf | Theory of Income, Employment, Inflation

1. Lower unemployment and lower inflation rates can best be achieved with a

(a) rightward shift of the Phillips curve

(b) rightward shift of the aggregate demand curve

(c) rightward shift of the aggregate supply curve

(d) leftward shift of the aggregate supply curve

Ans. c

2. Which of the following causes a decrease in unemployment and inflation at the same time?

(a) A rightward shift in the aggregate supply curve

(b) Wage increases equal productivity increases which reduces intlation

(c) A rightward shift in the aggregate demand curve

(d) All of the above

Ans. a

3. The Keynesian analysis of aggregate demand indicates that a decline in the price level causes

(a) a decline in the real money supply, an increase in interest rates, a decline in investment spending and a decline in aggregate output demanded

(b) a decline in the real money supply, a decline in interest rates, an increase in investment spending and an increase in aggregate output demanded

(c) an increase in the real money supply, a decline in interest rates, an increase in investment

(d) a decline in spending and an increase in aggregate output demanded

Ans. 

4. The aggregate supply curve is

(a) the total quantity of raw materials offered for sale at different prices

(b) the total quantity of final goods and services offered for sale at the current price level

(c) the total quantity of final goods and services offered for sale at different price levels

(d) the total quantity of intermediate and final goods and services offered for sale at different price levels

Ans. c

5. Which of the following will cause the Phillips curve to shift to the left?

(a) Eliminating price controls

(b) Regulating the economy

(c) Increasing the marginal tax rate on excess profit

(d) Job-search assistance

Ans. d

6. Keynesians contend that

(a) the self-correcting mechanism works slowly because wages are inflexible

(b) the aggregate supply curve does not move quickly to restore the economy to the natural rate of unemployment

(c) there is little need for active government policy to restore the economy to full employment when unemployment

(d) Both ‘a and ‘b’

Ans. d

7. A movement along the Phillips curve shows that the unemployment rate and inflation rate are

(a) inversely related to each other

(b) directly related to each other

(c) changing in response to shifts in aggregate supply

(d) changing in response to supply side policy

Ans. a

8. The total quantity of an economy’s final goods and services demanded at different price levels is

(a) the aggregate supply curve

(b) the aggregate demand curve

(c) the Phillips curve

(d) the aggregate expenditure function

Ans. b

9. Deficient demand causes

(a) deflation

(b) excess defiationary gap

(c) infiationary gap

(d) deflationary gap

Ans. d

10. According to monetarists, a decline in the money supply holding other factors constant shifts the aggregate……. curve to the …

(a) demand, right

(c) supply, right

(b) demand, left

(d) supply, left

Ans. b

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Multiple choice questions of Subject Commerce MCQs Topic Budget Related Questions and Answers pdf ( Budget Related Questions and Answers pdf Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Budget Related Questions and Answers pdf | MCQ on Government Budget class

2. Which one of the following taxes is levied by the central but wholly assigned to the statest

(a) Personal income tax

(b) Excise on drugs and narcotic

(c) Railway passenger tax

(d) Gift tax

Ans. c

3. All the revenues received, loans raised and money received in repayment of loans by the Union Government go into

(a) Consolidated Fund of india

(b) Contingency Fund of India

(c) Public Account of India

(d) Prime Minister’s Relief Fund

Ans. a

4. Given a proportional income tax and a balanced budget, an autonomous increase in investment will increase the level of equilibrium income and the budget will

(a) still be in balance

(b) have a surplus

(d) the outcomne is uncertain

(c) have a deficit

Ans. a

5. The merit of zero based budgeting is that

(a) tax liability is reduced

(b) profits go up

(c) deficit financing becomes zero

(d) expenditure is rationalised

Ans. d

6. In India, constitutional requirement, according to.

(a) Article 112 preparing government budget is a

(b) Article 110

(d) Article 102

(c) Article 115

Ans. a

7. In the Indian context, deficit financing means

(a) an excess of goverriment’s revenue over expenditure

(b) an excess of government’s current expenditure over its current revenue

(c) an excess of government’s total expenditure over its total revenue

(d) None of the above

Ans. c

8. Indirect taxes are objectionable because they

(a) are hard to collect

(b) are regressive

(c) do not raise enough revenue

(d) are particularly hard on the rich

Ans. b

9. Arrange the following reports in chronological order.

1. Direct taxes enquiry committee’s final report.

2. Final report on rationalising and simplification of the tax structure,

3. Indian tax reforms report of a survey.

4. Taxation enquiry commission.

Codes (a) 4 321

(c) 3 142

(b) 1 234

(d) 2 314

Ans. a

10. When the rate of tax goes up with increase in income, it is c oft called

(a) proportional tax

(c) progressive tax

(b) regressive tax

(d) presumptive tax

Ans. c

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Multiple choice questions of Subject Commerce MCQ Questions with Answers pdf | Forms of Market pdf ( Commerce MCQ Questions with Answers pdf | Forms of Market pdf Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Forms of Market pdf | Commerce MCQ Questions with Answers pdf | E commerce MCQs

1. The AR curve and industry demand curve are same

(a) in case of monopoly

(b) in case of oligopoly

(c) in case of perfect competition

(d) None of the above

Ans. a

2. When the TR and STC curves are parallel, it shows the point where the monopolist reaches the

(a) best level of profit only

(b) best level of output

(c) best level of rivals price

(d) All of these

Ans. b

3. A cartel is most likely to occur in

(a) perfect competition as firms compete by reducing cost

(b) oligopoly as firms act together to raise prices to increase profits

(c) monopolistic competition where firms collude to increase profits

(d) oligopoly as firms compete to lower prices and increase their own profits

Ans. b

4. Bilateral monopoly refers to a market situation in which

(a) a single producer (monopolist) of a product faces a single buyer (monapsonist) of that product

(b) there is only one seller in the market

(c) there are two sellers in the market

(d) there are two buyers in the market

Ans. a

6. Which of the following statements is/are not correct?

1. Prices ratio goods among different uses and users.

2. Prices tend to force producers into low cost aperations, especially in competitive industries.

3. Prices tend to force producers into high cost operations, especially in competitive industries.

4. Prices reflect in competitive industries.

(a) 1 and 4

(c) Only 3

(b) Only 2

(d) Only 4

Ans. c

7. A price discriminating

(a) cannot offer discounts

(b) sells a larger quantity than it would if it was a single price monopoly

(c) cannot control the price of its product

(d) makes a smaller economic profit than it would if it was a single price monopoly

Ans. b

8. Pursuing a policy of price discrimination will increase the profits of a monopolist who sells in two sub markets

(a) only if he sells more than one product

(b) if the price elasticity of demand for his output differs in two markets

(c) if buyers in either sub market can easily resale his output to buyers in the other sub market

(d) only during the short-run when capital stock is fixed

Ans. b

9. In monopolistic competition, a firm can earn supernormal profits in the short-run but in the long-run, such profits disappear because

(a) it assumes that entry is free and new firms will enter the industry

(b) it assumes that exit is free and old firms will exit from the industry

(c) it assumes that the market is to be coniverted into monopoly due to cartel

(d) All of the above

Ans. a

10. If a monopolistically competitive seller can convince buyers that sold by rival firms, then his product is of better quality and value than products

(a) demand becomes more inelastic

(b) demand increases

(c) the firm gains more control over its prices

(d) All of the above

Ans. d

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Multiple choice questions of Subject Commerce MCQs Topic National Income Multiple Choice Questions and Answers pdf ( MCQ on National Income Multiple Choice Questions and Answers pdf Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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MCQ on National Income pdf | National Income Multiple Choice Questions and Answers pdf

1. Comparisons of GDP levels across countries are most accurate when

(a) the value of non-market activities is the same across countries

(b) prices are the same across countries

(c) prices and the value of non-market activities are the same across countries

(d) prices for non-market activities are the same across countries

Ans. c

2. The value of output produced by residents located within the country, before depreciation and including the influence of taxes and subsidies, is known as

(a) GNP at matket prices

(b) GNP at factor cost

(c) GDP at factor cost

(d) GDP at market prices

Ans. d

3. The. can be utilised to measure the direct and indirect effects on the entire economy of any sectoral change in input-output of final demand,

(a) output coefficient table

(b) input coetficient table

(c) transactions

(d) None of the above

Ans. b

4. Which of the following is an example of an intermediate product?

(a) A pair of skise sold by a sporting goods retailer to a skier

(b) A share of IBM stock

(c) The lumber produced by Boise Cascade and sold to builder of new houses

(d) An antique car sold to the highest bidder

Ans. c

5. Social accounts help to form the basis for economic models for the purpose

(a) of analysing the behaviour of the economy as a whole

(b) of hiding the problems of the economy

(c) to control papulation and illiteracy

(d) None of the above

Ans. a

6. Which one of the following are excluded when measuring national income?

(a) Consumer spending in the expenditure method

(b) Value added in the output method

(c) Tranister payments in the income method

(d) None of the above

Ans. c

7. Investment is the purchase of capital equipment, inventories, and

(a) structures

(c) depreciation

(b) non-durable goods

(d) import investment

Ans. a

8. Which of the following would not be counted as a final good for inclusion in GDP?

(a) A piece of glass bought by a consumer to fix a broken window

(b) A sheet of glass purchased by a commercial builder of a new home

(c) A sheet of glass produced this year and ending up in the inventory of a retail store

(d) A home that is built this year but is not sold

Ans. b

9. In an economy, the total income derived from all economic activities in a given year is

(a) greater than the sum of gross nationial product

(b) equal to the sum of gross national product

(c) equal to national income

(d) greater than the national income Nominal GNP

Ans. c

10. GNP deflator= Nominator GNP/?x100

(a) Real GNP

(b) Consumer price index

(c) Current price index

(d) None of the above

Ans. a

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Multiple choice questions of Subject Commerce MCQs Topic E Commerce Multiple Choice Questions and Answers pdf: Demand and Supply ( MCQ on Demand and Supply with Answers PDF Quiz ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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MCQ on Demand and Supply with Answers PDF

1. What does ‘elasticity of supply’ measure?

(a) The change in quantity supplied divided by the price

(b) The responsiveness of quantity supplied to a change in price

(c) The responsiveness of quantity supply to a change in demand

(d) The responoiveness of price to a change in the quantity supplied

Ans. b

2. If a 5% fall in the price of a commodity causes quanitity supplied to decrease by 8%, then supply is

(a) elastic

(b) inelastic

(c) unit elastic

(d) perfectly inelastic

Ans. a

3. The market period supply curve for perishable commodities is

(a) relatively inelastic

(c) relatively elastic

(b) perfectly inelastic

(d) perfectly elastic

Ans. b

4. If a 5% increase in the price of one good results in a decrease of 2% in the quantity supplied of another good, then it can be concluded that the two goods are

(a) complements

(b) substitutes

(c) independent

(d) normal

Ans. b

5. The supply of a particular product will be more inelastic

(a) the longer it takes to produce the good

(b) the longer the good can be stored

(c) the greater the number of firms in the industry

(d) the greater the amount of spare capacity in the industry

Ans. a

MCQ on Demand and Supply with Answers

6. The elasticity of supply of a commodity measures the with which

(a) its productioni can be expanded in response to a change

(b) additianal units of a fixed factor used in its production can be obtained

(c) units of a variable factor can be substituted for units of a fixed factor used in its production

(d) additional units of a factor used in its production can be purchased at going rates

Ans. a

7. The chief determinant of price elasticity of supply of product is

(a) the number of good substitutes the product has

(b) the length of time sellers have to adjust to a change in price

(c) whether the product is a luxury or necessity

(d) whether the product is a durable or a non-durable good

Ans. b

8. If supply is inelastic and demand decreases, the total revenue of sellers will

(a) increase

(b) decrease

(c) decrease only if demand is elastic

(d) increase only if demand is inelastic

Ans. c

9. Which one of the following is likely to lead directly shift in the supply curve for dresses?

(a) An increase in the income of consumers

(b) A reduction in a tariff on imported cotton used in dress manufacture

(c) A successful advertising campaign by an association of dress manufacturers

(d) An increase in the prices of skirts and blouses

Ans. b

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