Business Environment Questions and Answers Part-1

1. In which production India has attained self-sufficiency?
a) Fertilizers
b) Edible oil
c) Petroleum
d) Food grains

Answer: d

2. Closed economy is one in which
a) Only export takes place
b) Neither exports nor imports take place
c) Money supply is fully controlled
d) Exchange rates are under a full control of the government

Answer: b

3. The largest share in India's national income is from
a) Service sector
b) Agriculture sector
c) Manufacturing sector
d) Trade sector

Answer: a

4. Which of the following countries per capita income is the highest?
a) India
b) Bangladesh
c) Thailand
d) Pakistan

Answer: c

5. Which of the following is not a fundamental right enshrined in the Indian Constitution?
a) Right to freedom of religion
b) Right to equality
c) Right to equal pay for equal work for men as well as women
d) Right to freedom of thought and expression

Answer: c

6. Among the supply side measures to control inflation is
a) Curtailing public expenditure
b) Mopping up excess liquidity through taxation
c) Credit control measures of RBI
d) Maintaining price levels through 'administered price mechanism' and 'effective PDS'

Answer: d

7. Which of the following is the most integrated form of regional economic arrangement?
a) Customs union
b) Economic union
c) Free trade area
d) Multilateral trading area

Answer: b

8. Which of the following items is not included in a country’s balance of payments?
a) Shipping services
b) Interest received from abroad
c) Import and export duties
d) Tourists expenditure

Answer: c

9. A situation where a country exports a product at a price below its cost of production.
a) Full cost pricing
b) New protectionism
c) Dumping
d) Price skimming

Answer: c

10. Coca Cola is a good example of a ___________________ MNC (Multinational Corporation)
a) conglomerate
b) free-standing
c) vertically integrated
d) horizontally integrated

Answer: a