Business and Economics - General Knowledge Questions

1 .
Value maximization theory fails to address the problem of
A)
risk
B)
uncertainty
C)
sluggish growth
D)
self-serving management

Correct Answer :   self-serving management

2 .
Law of diminishing marginal utility is based on the assumption that
A)
Tastes change over time
B)
Consumption is continuous
C)
Different units of goods consumed are homogeneous
D)
None of the above

Correct Answer :   Tastes change over time

3 .
Price effect in indifference curve analysis arises
A)
When income and price change
B)
When the consumer is betler off due to a change in income and price
C)
When the consumer becomes either better off or worse off because price change is not compensated by income change
D)
None of the above

Correct Answer :   When the consumer becomes either better off or worse off because price change is not compensated by income change

4 .
The kinked demand curve explains
A)
Demand flexibility
B)
Demand rigidity
C)
Price flexibility
D)
Price rigidity

Correct Answer :   Price rigidity

5 .
Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase Deposit Insurance Coverage for a depositor, which is now Rs. one lakh to
A)
Rs. 5 lakh per depositor
B)
Rs. 10 lakh per depositor
C)
Rs. 15 lakh per depositor
D)
Rs. 20 lakh per depositor

Correct Answer :   Rs. 5 lakh per depositor

6 .
The Dependency Ratio in India is declining because
A)
Population of 0-14 years is relatively high
B)
Population of 60 years and above is relatively high
C)
Population of 15-59 years is relatively high
D)
Population of 0-14 years and 60 years and above together are relatively high

Correct Answer :   Population of 15-59 years is relatively high

7 .
International Financial Centre, first of its kind in India, is established in which state?
A)
Gujarat
B)
Maharashtra
C)
West Bengal
D)
Tamil Nadu

Correct Answer :   Gujarat

8 .
Which one of the following statements correctly describes the meaning of legal tender money?
A)
The money which is tendered in courts of law to defray the fee of legal cases
B)
The metallic money in circulation in a country
C)
The bank money in the form of cheques, drafts, bills of exchange etc.
D)
The money which a creditor is under compulsion to accept in settlement of his claims

Correct Answer :   The money which a creditor is under compulsion to accept in settlement of his claims

Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation.

9 .
Which of the following is a social objective of business?
A)
Innovation
B)
Risk management
C)
Business coordination
D)
Employment generation

Correct Answer :   Employment generation

10 .
In ....... economies, all productive resources are owned and controlled by the government.
A)
mixed
B)
socialist
C)
dual
D)
capitalist

Correct Answer :   socialist

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