Start learning →

CA Foundation Unit 5: Factor Markets & Resource Allocation — practice questions

Explore 22 free Unit 5: Factor Markets & Resource Allocation questions in CA Foundation Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Unit 5: Factor Markets & Resource Allocation with Quill →

Unit 5: Factor Markets & Resource Allocation questions and exercises with answers

Showing questions 1–22 of 22.

Which is NOT a factor of production?Read the answer and worked solution →Sort each as Direct or Indirect Tax.Read the answer and worked solution →Match each demand-related concept to its definition.Read the answer and worked solution →CA Foundation · Economics · Micro or Macro EconomicsRead the answer and worked solution →CA Foundation · Economics · Economics — Quick T/FRead the answer and worked solution →The term 'Economics' is derived from the Greek word 'Oikonomia', which originally means:Read the answer and worked solution →Till the 19th century, the subject now called Economics was commonly known as:Read the answer and worked solution →The 1776 work 'An Inquiry into the Nature and Causes of the Wealth of Nations' is regarded as the first modern work of Economics. Who authored it?Read the answer and worked solution →Business Economics is best described as the integration of economic theory with:Read the answer and worked solution →Business Economics is also commonly referred to by which alternative name?Read the answer and worked solution →Who defined Business Economics in terms of the use of economic analysis in the formulation of business policies?Read the answer and worked solution →Which branch of Economics studies the behaviour of individual units such as consumers and firms in allocating their scarce resources?Read the answer and worked solution →Which of the following subjects of study falls under Macro Economics rather than Micro Economics?Read the answer and worked solution →A study of total consumption, total saving, total investment, and the overall level of employment in an economy belongs to:Read the answer and worked solution →A science that states 'what is' and describes cause-and-effect relationships without any value judgement is termed:Read the answer and worked solution →In the scope of Business Economics, internal or operational issues of a firm are addressed mainly through:Read the answer and worked solution →The technique of predicting future demand for goods and services on the basis of the past behaviour of factors affecting demand is known as:Read the answer and worked solution →A resource gives rise to an economic problem only when it satisfies which pair of conditions?Read the answer and worked solution →A government deciding how many schools, hospitals and metres of cloth the nation should turn out is essentially answering which basic economic question?Read the answer and worked solution →The decision of whether cotton cloth should be made on handlooms or on automatic looms primarily relates to which basic economic problem?Read the answer and worked solution →When a society settles how the total output of goods and services will be shared among its members, it is solving the problem of:Read the answer and worked solution →An economy in which the means of production are privately owned and the profit motive drives economic activity is called a:Read the answer and worked solution →

Worked practice questions

Which is NOT a factor of production?

  1. capital
  2. labour
  3. land
  4. money
Show answer and solution

Correct answer: D. money

The four factors of production are land, labour, capital and entrepreneurship. Money is a medium of exchange, not a factor.

Open this question →

Sort each as Direct or Indirect Tax.

Read exercise and reference answers
Left
Direct
Items
  1. Item
    Income Tax
    Answer
    Direct
  2. Item
    Corporation Tax
    Answer
    Direct
  3. Item
    Wealth Tax
    Answer
    Direct
  4. Item
    GST
    Answer
    Indirect
  5. Item
    Customs Duty
    Answer
    Indirect
  6. Item
    Excise Duty
    Answer
    Indirect
Right
Indirect
Instructions
India's tax system.
_Source: ICAI BoS Paper 4 'Business Economics' tax section_

Open this exercise →

Match each demand-related concept to its definition.

Read exercise and reference answers
Matching pairs
  1. Left
    Law of Demand
    Right
    Demand falls as price rises (ceteris paribus)
  2. Left
    Price Elasticity of Demand
    Right
    % Δ Qty demanded / % Δ Price
  3. Left
    Giffen Goods
    Right
    Demand rises as price rises (exception)
Instructions
Foundation microeconomics.
_Source: ICAI BoS Paper 4 'Business Economics' Ch 2 'Demand and Supply'_

Open this exercise →

How to practise

  1. Choose a Unit 5: Factor Markets & Resource Allocation question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Unit 5: Factor Markets & Resource Allocation practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Unit 5: Factor Markets & Resource Allocation →

More Economics topics

Unit 1A: Scarcity, Choice and Opportunity CostUnit 3: Production, Cost & Perfect CompetitionUnit 2A: Demand, Supply and Market EquilibriumTheory of Consumer Behaviour & DemandUnit 4: Imperfect Competition & Market StructuresTheory of Demand & Elasticity