Management Aptitude Test – MAT entrance exam has seen various changes over the years, the recent one is the most critical change being the equal importance given to the Economics and Business Environment section in the overall composite score. This means that your performance in this section can significantly influence your MAT composite score, overall percentile and chances of admission. This section mainly assesses your knowledge on current affairs related to the economy and business environment, as well as fundamental economic concepts and terminology. In this article, you will understand this section in detail and the strategic approach covered in the MAT training classes, to excel in this section.
Understanding the Economics and Business Environment Section:
This section tests your knowledge of important economic and business developments, both in India and abroad.
The questions typically fall into these categories:
- Current Economic Affairs: Questions about recent economic policies, highlights from the budget, developments in international trade, and major financial news.
- Business and Corporate Affairs: Awareness of mergers, acquisitions, leadership changes in major corporations, stock market trends, and financial reports from significant companies.
- Economic Terminologies and Theories: Concepts such as inflation, GDP, fiscal policy, monetary policy, foreign direct investment (FDI), and balance of payments.
- Government Schemes and Policies: Familiarity with various government initiatives, including Atma Nirbhar Bharat, Make in India, Start-up India, and other economic reforms.
- Global Economic Developments: Knowledge about institutions like the International Monetary Fund (IMF), World Bank, WTO, and their effects on both global and Indian economies.
How to Prepare for This Section?
- Stay Updated with Current Affairs: Since the MAT entrance exam places a strong emphasis on recent developments, reading the newspaper daily is essential. The best sources for relevant economic and business news include: • The Economic Times • Business Standard • Financial Express • The Hindu Business.
To enhance your preparation, consider subscribing to our Instagram handle where we do share weekly/daily updates on current affairs.
- Follow Online Economic and Business Portals: There are numerous online resources offer valuable insights into economic trends and business developments. Some recommended platforms include:
- Investopedia for a better grasp of economic terminology
- Moneycontrol and Bloomberg Quint for the latest stock market and business news
- PIB (Press Information Bureau) for updates on government policies
- NITI Aayog reports for in-depth economic development analysis
Additionally, you can follow our Youtube channel and MAT online coaching platforms for new updates.
- Fundamentals of Economics & Business: It’s also important to review fundamental economic theories. The best source is to refer to the NCERT Economics Books (Class 11 and 12) for foundational concepts.
- Make Notes and Revise Regularly: Creating daily notes can help you retain essential information. Keep separate notebooks for:
- National and international economic updates
- Key government schemes and policies
- Major corporate and business events
- Important economic terms and definitions
Make it a habit to revise these notes at least once a week to keep the information fresh in your mind.
- Solve MAT Previous Year Papers and MAT Mock Tests: Practicing past MAT exam papers will give you a clear understanding of the question patterns and frequently asked topics. Additionally, taking mock tests and sectional quizzes will enhance your speed and accuracy. Have a look at our MAT mock test series that can be extremely beneficial.
- Time Management Strategy: This section contains 30 questions, and you should aim to complete them in 15–20 minutes. Here are some tips to enhance your time management:
- Start with questions on familiar current affairs topics.
- Initially skip challenging questions and come back to them later.
- Use the elimination technique to discard incorrect answers.
- Avoid random guessing unless you have a reasonable level of certainty about the answer.
MAT Economics and Business Environment Sample questions:
- Which ministry launched the “SMILE”, a Central Sector Scheme?
[A] Ministry of Home Affairs
[B] Ministry of Culture
[C] Ministry of Social Justice and Empowerment
[D] Ministry of Health and Family Welfare
Answer: [C]
- In December 2024, which Indian stock exchange achieved a global milestone by leading in IPO proceeds for the year?
[A] Bombay Stock Exchange (BSE)
[B] National Stock Exchange (NSE)
[C] Calcutta Stock Exchange
[D] Multi Commodity Exchange (MCX)
Answer: [B]
- Which organization releases the Consumer Price Index (CPI) inflation data in India?
[A] Reserve Bank of India (RBI)
[B] National Statistical Office (NSO)
[C] Ministry of Finance
[D] NITI Aayog
Answer: [B]
- Which regulatory body oversees foreign direct investment (FDI) policies in India?
[A] Reserve Bank of India (RBI)
[B] Securities and Exchange Board of India (SEBI)
[C] Department for Promotion of Industry and Internal Trade (DPIIT)
[D] Ministry of Corporate Affairs (MCA)
Answer: [C]
- Which of the following is not a brand belonging to Nestle group?
[A] Maggi
[B] Nescafe
[C] KitKat
[D] Lipton
Answer: [D]
Conclusion:
The Economics and Business Environment section of the MAT entrance exam is vital for achieving a high composite score. By keeping up with current affairs, grasping essential economic concepts, and practicing consistently, you can enhance your performance in this area. Joining a MAT training class or enrolling in an online coaching program can further refine your preparation. With a well-organized study plan, mastering this section is within your reach. Happy studying!