CBSE Questions for Class 11 Commerce Business Studies Business Trade And Commerce Quiz 7 - MCQExams.com

Which one of the following taxes belong exclusively to the State Governments?
  • Income Tax
  • Agricultural Tax
  • Excise Tax
  • Wealth Tax
Which of the following is an objective of VAT?
  • To avoid double taxation effect or cascading effect
  • To promote cost-efficiency, by permitting credit on inputs
  • To ensure equitable distribution of tax impact amongst Dealers
  • All of the above
Ram : My corn harvest this year is poor.
Krishna : Don't worry. Price increases will compensate for the fall in quantity supplied.
Vinod : Climate affects crop yields. Some years are bad, others are good.
Madhur : The Government ought to guarantee that our income will not fall.
In the conversation the normative statement is made by ______________.
  • Ram
  • Krishna
  • Vinod
  • Madhur
Which of the following is/are an outcome of a technological change?
  • A downward shift in the production function
  • Same output with fewer inputs or more output with same inputs
  • Invention of a product or production process
  • Both (b) and (c) above
In the pre-reforms period (i.e. before 1991), Import of food grains was permitted ______________.
  • In order to meet domestic demand in case of shortage of foodgrains
  • To help Indians consume nutritious food
  • Whenever there was a favourable Balance of Trade
  • All of the above
Which of the following does not relate to the External Sector Reforms in 1991?
  • Devaluation of the Rupee
  • Removal of restrictions on Foreign Exchange transactions
  • Export Support
  • Restrictions on Foreign Direct Investment
As part of Economic Reforms in 1991, Financial Sector Reforms relates to :
  • Banking Sector
  • Capital Market Sector
  • Insurance Sector
  • All of the above
Which of the following does not relate to the Banking Sector Reforms in 1991?
  • Introduction of Derivative Products
  • Restriction of credit for purchase of consumer durables
  • Liberalisation of principles governing Dividend Payments
  • Emphasis on transparency
All of the following developments were noticed during 1991 (when economic reforms were enforced) except one. Identify it.
  • National Debt was nearly 60% of the GNP of India
  • Inflation crossed double digits
  • Foreign Reserves were maintained at a very high level
  • None of the above
In which of the following situations, the Law of Variable Proportions will not apply?
  • Improvement in technology
  • When all factors are proportionately varied
  • Where the factors must be used in fixed proportions to yield the product
  • All of the above
What is the function of Hundi  'Dekhan-har' ?
  • Payable to the presenter or bearer.
  • Hundi made payable to order following a fixed term.
  • Drawn against dispatched goods. If goods lost in transit, the drawer or holder bears the coasts, and the Drawee carries no liability.
  • Payable to any personno liability over who received payment.
What is the function of Hundi 'Dhani-jog' ?
  • Hundi made payable to order.
  • Payable to any personno liability over who received payment.
  • Payable to the presenter or bearer.
  • Hundi made payable to order following a fixed term.
In the pre-reforms period (i.e. before 1991), Export Subsidy Schemes were characterised by:
  • High transaction costs
  • Delays
  • Corruption
  • All of the above
As a result of the New Industrial Policy, 1991 -
  • Prior approval of Central Government is required for establishing new undertakings, and expanding the present undertakings
  • An industry intending to have more than Rs 100 Crore of assets is required to obtain the permission of the Central Government
  • Prior approval of Central Government for establishing new undertakings and expanding existing undertaking is not required
  • Two or more Companies deciding to amalgamate are required to take the prior approval of the Central Government
New Economic Reforms in India were introduced in ___________.
  • 1999
  • 1991
  • 2001
  • 2003
All of the following institutions promote/assist Export Trade. Identify the institution which does not.
  • The Trade Fair Authority
  • Indian Institute of Management
  • The Indian Institute of Foreign Trade
  • Commodity Boards
Which of the following is not true about the pre-reforms period (i.e. before 1991)?
  • Shortage of Foreign Exchange
  • Heavy Government Borrowings
  • Huge Losses of Public Sector Enterprises
  • Surplus Budget in each financial year
'Served from India' brand concept has been started for -
  • Agricultural exports
  • Exports of services
  • Export of handlooms and handicrafts
  • Export of gems and jewellery
As a result of Economic Reforms, Re-structuring, Mergers & Acquisitions of Companies, Business Process Re-engineering, processes have been ___________.
  • Simplified
  • Made more procedural
  • Subject to Central Government approval in all situations
  • None of the above
Which of the following is a positive impact of Economic Reforms on the Indian Economy?
  • Focus on Brand Building in an increasingly competitive market place
  • Shift from labour-intensive to capital-intensive methods of production
  • Stress on quality and R & D
  • All of the above
Lowering of Import / Export Duty Rates, as part of the External Sector Reforms in 1991, relates to -
  • Exchange Rate Stabilisation
  • Rationalisation of Tariff Structure
  • Quantitative Restrictions
  • Foreign Direct Investment
After the initial stages of increasing returns to scale, the Firm will experience ________________________.
  • Still Increasing Returns to Scale
  • Constant Returns to Scale
  • Diminishing Returns to Scale
  • None of the above
When Total Revenue equals Economic Costs, it means that the firm________________.
  • Has No-profits-No-Loss
  • Earns Normal Profits
  • Earns more than Normal Profits (i.e. Super -Normal Profits)
  • Incurs Looses in the accounting sense
An indifference curve slopes down towards right since more of one commodity and less of another result in.
  • Same satisfaction
  • Greater satisfaction
  • Maximum satisfaction
  • Decreasing expenditure
In India, Support to Exporters is available in the form of:
  • Duty and Tax Concessions
  • Export Finance
  • Export Promotion Marketing Assistance
  • All of the above
Which of the following were abolished as part of the External Sector Reforms in 1991?
  • Cash Compensatory Scheme
  • EXIM Scrip Scheme
  • Both (a) and (b)
  • Neither (a) nor (b)
Which of the following statements is true?
  • The services of a doctor are considered production
  • Man can create matter
  • The services of a housewife are considered production
  • When a man creates a table, he creates matter
Equity Offer through 'Differential Pricing Method' primarily refers to ________________________.
  • Government selling part of its Shares in one PSU to other PSUs
  • Government selling Shares of PSUs to Public Sector Financial Institutions and Banks
  • Government's own Financial Institutions buying Government's stake in select PSU's and holding them until any third buyer emerges
  • None of the above
Maintaining Government's stake up to 26% in the PSU to protect its interest is called as ______________.
  • Retaining Golden Share
  • Strategic Sale
  • Cross Holding
  • Warehousing
In the context of Indian Economy, there may be a need for importing foodgrains in case of:
  • Balancing exports and imports of foodgrains.
  • Severe shortages of foodgrains due to drought, floods, etc.
  • Increase in the consumption of foodgrains
  • None of the above
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