In the CA foundation, Paper three and Paper four have objective types of questions. Paper three is quantitative aptitude. Paper four is Business Economics. The students learn Business mathematics, logical reasoning and statistics in quantitative aptitude. Business mathematics has the same syllabus as the 12th standard, and some extra topics are added. By practice, students score high marks on the MCQ questions. The students attend the answers that are right for sure. The students omit the answers that are not confident. The tactics behind the MCQ question are to utilise the time and knowledge with self-confidence.
In Business economics, students learn about the nature and scope of business economics, the theory of demand and supply, the theory of production and cost, price determination in different markets, the determination of national income, public finance, the money market, and international trade. The questions framed for the objective type of papers consist of direct and indirect answers. The questions with indirect answers are hard to understand. The students take time as it is confusing. However, after referring to the book, it is easy for the students to answer the questions. The blog provides sample MCQ questions for the Business economics subject under the new syllabus.
New chapters in the new CA foundation scheme:
In economics, the old syllabus had weightage to business and commercial knowledge. In the new syllabus, the weightage is to core economics. The students learn micro, macro and Indian economics in business economics. The subject provides a wide knowledge to the students. The paper has a negative marking of 0.25 marks per question. The determination of national income has fifteen per cent of weightage. This chapter is not there in the old syllabus. The money market is the new chapter in the new syllabus. The weightage of the money market is ten marks. Business cycles, public finance, and international trade are also part of new chapters for the students with additional coverage. The easy chapters to start exam preparation are as follows: an introduction to business economics, the theory of demand and supply, the theory of production and costs, price determination in different markets, and the Indian Economy. The students have foundation knowledge of these chapters. MCQ questions test the knowledge and application knowledge of the students. The students should use a diversified approach in MCQ preparation. Learning from multiple sources helps in gaining in-depth knowledge.
Objective type questions:
Here is the list of MCQ patterns of questions as a glimpse to the students. The newly added chapters are the determination of national income and money market. The following questions are from this new attribution.
The determination of national income:
The national income measures the performance of a country through _____
- Double-entry accounting system
- Single-entry accounting system
- Formula
- Statement
Equilibrium price equals the demand and _____
- Supply
- Money
- Income
- Expenditure
Equilibrium price changes by decrease in _______
- Demand and supply
- Production
- Price
- Income
In monopolistic competition, new firms have the freedom of______
- Entry and Exit
- Sales
- Production
- Price determination
The difference between open and closed oligopoly is_____
- The entry of new firms
- The sales volume
- The price determination
- The competition
The income approach is used in case the total expenditure from the economic activity is equal to the ______
- Total income
- Total profit
- Total sales
- Total production
GDP is calculated for every ____
- Month
- Quarter
- Half-year
- Year
The other name for the value-added method of GDP calculation is _____
- Inventory method
- Income method
- Expenditure method
- Money method
In the value-added method, if the value of intermediate goods is added to the national income, it shows_____
- Double counting
- Correct value
- Total value
- Value of goods produced
An increase in the inventory value is included in the calculation of GDP with the value-added method. The increase in the value of inventory is ____
- Capital formation
- Business income
- Personal income
- Cash flow
Money market
The Tobin theory of demand for money says that individuals hold safe and risky assets. The individual behaviour of holding cash and investment shows______
- Risk aversion
- Money management
- Interest
- Plans
Demand for money is the sum of______
- Direct demand
- Real demand
- Inverse demand
- Derived demand
The three functions of money are as follows______
- Medium of exchange, store of value and unit of account
- Medium of exchange, store of value and price control
- Unit of account, yields, store of value
- Medium of exchange, income distribution, unit of account
The other name of Cambridge theory is______
- Classical approach
- Fisher’s theory of money
- Cash balance approach
- Keynesian approach
The three motives for holding money according to the Keynesian theory of demand are the Precautionary motive, the Transactions motive and ________
- Speculative motive
- Personal motive
- Profit motive
- Investment motive
According to the Keynesian theory of demand, the transaction motive for money says the motive for holding cash is_____
- Personal and trade
- Business
- Demand
- Value
According to Keynes, the market rate and market interest rates of bonds are ______ related
- Inversely
- Directly
- Closely
- Not
A liquidity trap is an economic situation in which the increase in money supply does not affect the economic growth, income and ________
Interest rates
Purchases
Sales
Demand
Bottom line:
MCQ questions are an essential part of CA foundation preparation. The teachers in RR Academy offer more than a hundred questions in each chapter. The difference between the old and new scheme is the advance-level topics in each chapter. The students have the foundation knowledge in economics. The students get the complete knowledge only after taking the training in RR Academy. The nine months of training after the 12th standard prepare the students for writing the CA foundation with confidence.
The intensive preparation helps the students to gain more marks and complete the course on time. The students starting their education at the right time start their career at the right time. The domain knowledge inculcates leadership and entrepreneurial skills to the students. CA foundation, being the first step of the professional course is valued highly by the students. RR Academy faculties provide teacher notes, MCQ questions, and study materials. The support of the faculties is the reason behind the success story of the RR Academy’s students.
