Question 1 of 20 50 total questions
The average tax rate is defined as
A total tax rate less the marginal tax rate
B the tax rate which applies to additional value income
C the ratio of total taxes paid to total income
D marginal tax rate for being progressive
Budget deficit is the amount by which?
A total expenditure exceeds revenue
B recurrent expenditure exceeds revenue
C capital expenditure exceeds revenue
D recurrent expenditure exceeds capital expenditure
A tax that takes an increasing fraction of income as income goes down is called?
A conditional
B regressive
C progressive
D proportional
The term 'Stock of Capital 'means?
A amount of money necessary to start a business
B total amount receivable by all factors of production
C amount of equipment plant and inventory existing at a time
D total amount available for economic development
Banks aid economic expansion and development by?
A being very strict in lending policies
B mobilizing savings for investment lending
C paying interest on deposit accounts
D charging high interest on loans
An effect of inflation is that it?
A discourages trade by barter
B favours debtors at the expense of creditors
C increases the real income of salary earners
D increases the value of a country's exports
Fiduciary issue is that part of?
A the issue of notes backed entirely by gold
B a country's currency which is not negotiable
C the issue of notes not backed by gold
D a country's currency officially issued
To perform its function as a store of wealth and standard for deferred payment, money must be
A portable
B in attractive form
C stable in value
D spent more on capital goods than on consumer goods
One of the functions of Development Banks is to
A mint money for the development of the economy
B provide short-term loans to commercial banks
C provide medium and long-term finance for the development of the banking system
D provide medium and long-term finance for the development of the economy
One disadvantage of trade by barter is that?
A people are happier when they exchange the same quantities of goods through the medium of money rather than by barter
B the person wishing to buy good X may not have good Y which is what the other wants
C one person must always be cheated when trade takes place by barter
D it increases the intial cost of producing goods
Industries tend to be located closer to market centers than to the sources of major raw materials if the?
A products are relatively cheap to transport to market centers
B products are relatively more expensive to transport than the major raw materials
C raw marterials are bulky
D raw marterials can also be imported
A characteristic of a debenture is that?
A its yeild is based on profits
B its yeild is a fixed rate of interest
C it has no redemption date
D there is a voting right when interest is paid
A disadvantage of a joint-stock company is?
A unlimited liability
B limited liability
C continuity
D loss of controlling interest
One of the most outstanding disadvantages of co-operative societies as business organization is that?
A true spirit of co-operation is marred by delegated authority
B members show much interest
C it is poorly financed
D membership interest is centred on sharing of essential commodities
A possible factor which limits the extent of growth of a firm is the?
A existence of a monoploy
B bureaucratic delays in decision-making
C use of by-products
D unwillingness to share ownership and control
The ordinary partner in a partnership?
A takes no active in the management of the business
B has limited liability in case of business failure
C has unlimited liability in case of business failure
D cannot be sued personally on matters relating to the business
In a perfectly competitive market, the firm is in long-run equilibrium at the output where?
A marginal cost is minimum
B average cost is minimum
C total cost is minimum
D marginal cost revenue is maximum
Comparison of the price and output decisions of a perfectly competitive firm with those of a monopolist shows that the?
A monopolist charges a lower price than the perfect competitior
B perfect competitior charges a lower price and produces a large output than the monopolist
C perfect competitior produces a smaller output than the monopolist
D monopolist charges a lower price and produces a larger output than the perfect competitor
Resources are efficiently allocated when production takes place at that output where price equals?
A marginal revenue
B average variable cost
C marginal cost
D toal cost
The cross-elasticity of demand between complementary goods is?
A unitary
B positive
C zero
D negative
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