McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 51. |
Economic efficiency means |
| A. | Production of goods of mass consumption at lower cost |
| B. | Production of goods and services for those who have purchasing power |
| C. | Getting greatest satisfaction from available resources |
| D. | Full employment of working force |
| Answer» C. Getting greatest satisfaction from available resources | |
| 52. |
Opportunity cost of increasing production of Gun to 3 units in combination D is –tons of bread |
| A. | 200 |
| B. | 100 |
| C. | 300 |
| D. | 400 |
| Answer» D. 400 | |
| 53. |
Opportunity cost of increasing production of Gun to 4 units in combination E is –tons of bread |
| A. | 200 |
| B. | 500 |
| C. | 300 |
| D. | 400 |
| Answer» B. 500 | |
| 54. |
Opportunity cost of increasing production of Gun to 5 units in combination F is –tons of bread |
| A. | 200 |
| B. | 100 |
| C. | 600 |
| D. | 500 |
| Answer» C. 600 | |
| 55. |
In question No. 53 if the economy produces only 3 guns and 900 tons of wheat instead of 1100 tons of wheat what does it indicates |
| A. | Under employment of resources |
| B. | Production in efficiency |
| C. | Sub-optimal production |
| D. | All the three |
| Answer» D. All the three | |
| 56. |
If a firm is operating at any point inside the PPF, the firm is |
| A. | Efficient firm |
| B. | Inefficient firm |
| C. | Poised for abnormal growth |
| D. | None |
| Answer» B. Inefficient firm | |
| 57. |
Any point beyond PPF curve can be attained by |
| A. | Increasing supply of factor inputs |
| B. | Technological innovation |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 58. |
Economic growth is best depicted by |
| A. | Outward shift in PPF |
| B. | Upward movement in PPF |
| C. | Inward movement in PPF |
| D. | Downward movement in PPF |
| Answer» A. Outward shift in PPF | |
| 59. |
Production possibility curves shows maximum combinations of -----products |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 60. |
The relationship between aggregate consumption expenditure and aggregate income of household sector is known as ………………………. function. |
| A. | Consumption |
| B. | Saving |
| C. | Expenditure |
| D. | Income |
| Answer» A. Consumption | |
| 61. |
GDP at market price exceeds GDP at factor cost by the amount of revenue raised through ………………. |
| A. | Direct taxes |
| B. | Indirect taxes |
| C. | Income tax |
| D. | Tax on rents |
| Answer» B. Indirect taxes | |
| 62. |
Macroeconomics is the study of |
| A. | Inflation |
| B. | Unemployment |
| C. | Growth |
| D. | All of (a), (b) and (c) above. |
| Answer» D. All of (a), (b) and (c) above. | |
| 63. |
In a closed economy savings are equal to ……………….. at the equilibrium level of income. |
| A. | Investments |
| B. | Wages |
| C. | Income-Investments |
| D. | Wages – Consumption |
| Answer» A. Investments | |
| 64. |
Which of the following methods is/are used for measuring national income? |
| A. | Output method |
| B. | Expenditure method |
| C. | Income method |
| D. | All of (a), (b) and (c) above. |
| Answer» D. All of (a), (b) and (c) above. | |
| 65. |
Net factor income from abroad is equal to |
| A. | NNP at market price – NDP at market price |
| B. | NDP at market prices – Indirect taxes + Subsidies |
| C. | NDP at factor cost + Depreciation |
| D. | NNP at market prices + Depreciation |
| Answer» A. NNP at market price – NDP at market price | |
| 66. |
Personal disposable income is equal to …………………….. |
| A. | Wages and salaries + Dividends paid at home – Personal income tax |
| B. | Wages and salaries + Dividends paid at home + Factor income received from abroad – Personal income tax |
| C. | Wages and salaries + Dividends paid at home + Factor income received from abroad + Transfers from government – Personal income tax. |
| D. | Wages and salaries + Dividends paid at home + Factor income received from abroad - Transfers from government – Personal income tax. |
| Answer» C. Wages and salaries + Dividends paid at home + Factor income received from abroad + Transfers from government – Personal income tax. | |
| 67. |
Personal income equals personal disposable income (Yd) plus |
| A. | Personal savings |
| B. | Transfers from government |
| C. | Personal income taxes |
| D. | Dividend payments |
| Answer» C. Personal income taxes | |
| 68. |
GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is |
| A. | Gross exports minus depreciation |
| B. | Exports minus imports |
| C. | Gross exports earnings minus capital inflow |
| D. | Export minus imports of merchandize |
| Answer» B. Exports minus imports | |
| 69. |
Macroeconomics is concerned with |
| A. | The level of output of goods and services |
| B. | The general level of prices |
| C. | The growth of real output |
| D. | All of the above |
| Answer» D. All of the above | |
| 70. |
Personal income includes all of the following except |
| A. | Transfer payments |
| B. | Undistributed corporate profits |
| C. | Personal income taxes |
| D. | Dividend payments |
| Answer» B. Undistributed corporate profits | |
| 71. |
Nominal GDP is |
| A. | The total value of goods and services net of exports |
| B. | The total value of goods and services produced during periods of low unemployment |
| C. | The total value of goods and services measured at current prices |
| D. | The total value of goods and services produced at full employment. |
| Answer» C. The total value of goods and services measured at current prices | |
| 72. |
GDP at factor cost exceeds GDP at market price |
| A. | When the factor income from abroad is negative |
| B. | When depreciation on fixed capital exceeds income in investment |
| C. | When direct tax exceeds indirect tax |
| D. | When subsidies exceeds indirect taxes. |
| Answer» D. When subsidies exceeds indirect taxes. | |
| 73. |
The difference between Gross National Product (GNP) and Gross Domestic Product GDP) is |
| A. | Excess of subsidies over indirect taxes |
| B. | Depreciation |
| C. | Net foreign income from abroad |
| D. | Excess of indirect taxes over subsidies |
| Answer» C. Net foreign income from abroad | |
| 74. |
NDP does not include |
| A. | Payments made for income taxes |
| B. | Depreciation allowances |
| C. | Undistributed profits |
| D. | The value added from intermediate goods. |
| Answer» B. Depreciation allowances | |
| 75. |
National income is |
| A. | NDP at market prices |
| B. | NDP at factor cost |
| C. | NNP at factor cost |
| D. | GNP at market prices. |
| Answer» C. NNP at factor cost | |
| 76. |
The difference between personal disposable income and personal income is |
| A. | Indirect taxes |
| B. | Subsidies |
| C. | Transfer payments |
| D. | Personal taxes. |
| Answer» D. Personal taxes. | |
| 77. |
Which of the following is an example of a government transfer payment? |
| A. | Purchase of a new car for the Ministry of Finance |
| B. | Funding of a clinic to provide free vaccinations. |
| C. | Free food coupons issued to persons in an anti-poverty program. |
| D. | Funding of a new bridge in an urban area |
| Answer» C. Free food coupons issued to persons in an anti-poverty program. | |
| 78. |
The net factor income earned within the domestic territory of a country must be equal to |
| A. | Net Domestic Product at factor cost |
| B. | Net Domestic Product at market price |
| C. | Net National Product at market price |
| D. | Personal income. |
| Answer» A. Net Domestic Product at factor cost | |
| 79. |
By definition, the marginal propensity to consume |
| A. | Equals ΔC/ΔYd |
| B. | Is the behavioral coefficient c in the equation C = a + cYd |
| C. | Is the slope of the consumption function |
| D. | All the above |
| Answer» D. All the above | |
| 80. |
Ceteris paribus, an income tax |
| A. | Increases the value of the expenditure multiplier and decreases the value of the net tax revenue multiplier |
| B. | Decreases the value of the expenditure and net tax revenue multiplier |
| C. | Decreases the value of the expenditure multiplier and increases the value of the net tax revenue multiplier |
| D. | None of the above. |
| Answer» B. Decreases the value of the expenditure and net tax revenue multiplier | |
| 81. |
On the basis of the Keynesian model of output determination, a multiplier of 3 implies that |
| A. | An increase in consumption by `3 will result in an increase in investment by Re. 1 |
| B. | An increase in investment by Re. 1 will result in an increase in consumption by `3 |
| C. | An increase in investment by Re. 1 will result in an increase in consumption by `2 |
| D. | An increase in investment by Re. 1 will result in an increase in consumption by Re. 1 |
| Answer» C. An increase in investment by Re. 1 will result in an increase in consumption by `2 | |
| 82. |
Consumption demand does not depend upon the level of |
| A. | Income |
| B. | Propensity to consume |
| C. | Consumer spending |
| D. | Marginal efficiency of investment. |
| Answer» D. Marginal efficiency of investment. | |
| 83. |
The slope of the consumption curve connotes |
| A. | Average propensity to save |
| B. | Marginal Propensity to consume |
| C. | Marginal propensity to save |
| D. | Level of consumption in the economy. |
| Answer» B. Marginal Propensity to consume | |
| 84. |
Financial interrelation ratio is equal to |
| A. | Total issues / National income |
| B. | Primary issues / Net capital formation |
| C. | Total issues / Net capital formation |
| D. | Total stock of financial assets/Stock of fiscal assets |
| Answer» C. Total issues / Net capital formation | |
| 85. |
If the available workers are unaware of the jobs being offered and the employers are not aware of the available workers, such type on unemployment is called |
| A. | Frictional unemployment |
| B. | Structural unemployment |
| C. | Disguised unemployment |
| D. | Demand pull unemployment. |
| Answer» A. Frictional unemployment | |
| 86. |
Unemployment that arises when there is a general downturn in business activity is known as |
| A. | Frictional unemployment |
| B. | Structural unemployment |
| C. | Cyclical unemployment |
| D. | Disguised unemployment |
| Answer» C. Cyclical unemployment | |
| 87. |
Full employment is the level at which there is |
| A. | Zero unemployment |
| B. | Normal rate of unemployment |
| C. | Lease supply of labor |
| D. | Demand for goods is less than supply. |
| Answer» C. Lease supply of labor | |
| 88. |
Natural rate of unemployment increases due to |
| A. | General downturn in business activity |
| B. | Changes in labor market |
| C. | Structural changes in economy |
| D. | Frequent changes of jobs by labor |
| Answer» D. Frequent changes of jobs by labor | |
| 89. |
If the actual rate of unemployment exceeds to natural rate of unemployment then |
| A. | Actual output of the economy will fall below its potential |
| B. | Production will increase more than potential |
| C. | Consumption of goods decreases |
| D. | Both (a) and (c) above. |
| Answer» D. Both (a) and (c) above. | |
| 90. |
Unemployment that arises due to regional occupational pattern of job vacancies, which does not match the pattern of workers availability and suitability, is known as |
| A. | Frictional unemployment |
| B. | Structural unemployment |
| C. | Cyclical unemployment |
| D. | Demand pull unemployment. |
| Answer» B. Structural unemployment | |
| 91. |
Disguised unemployment means |
| A. | Unemployment in agriculture |
| B. | Unemployment due to recession |
| C. | Unemployment due to downturn in business activity |
| D. | Marginal Productivity of Labor (MPL) is zero. |
| Answer» C. Unemployment due to downturn in business activity | |
| 92. |
In which sector of Indian economy will we find a high rate of disguised unemployment? |
| A. | Service sector. |
| B. | Agriculture sector. |
| C. | Manufacture sector. |
| D. | Mining sector. |
| Answer» B. Agriculture sector. | |
| 93. |
Unemployment that is caused by a mismatch between the composition of the labor force (in terms of skills, occupation, industries, or geographic location) and the make-up of the demand for labor is called |
| A. | Real wage unemployment |
| B. | Deficient-demand unemployment |
| C. | Frictional unemployment |
| D. | Structural Unemployment |
| Answer» D. Structural Unemployment | |
| 94. |
During the recessionary phase of a business cycle |
| A. | The natural rate of unemployment will increase dramatically |
| B. | Potential national income will exceed actual national income |
| C. | Actual national income will exceed potential national income |
| D. | The real rate of interest will exceed the nominal rate of interest. |
| Answer» A. The natural rate of unemployment will increase dramatically | |
| 95. |
The Philips curve shows that |
| A. | High unemployment rates are associated with low increases in money wage rates |
| B. | Low unemployment rates are associated with low rates of inflation |
| C. | High unemployment rates are associated with low rates of inflation |
| D. | High inflation rates are associated with small increases in money wage rates. |
| Answer» C. High unemployment rates are associated with low rates of inflation | |
| 96. |
Full employment exists when there is |
| A. | Zero unemployment |
| B. | Natural rate of unemployment |
| C. | Least demand for labor |
| D. | Least supply of labor |
| Answer» B. Natural rate of unemployment | |
| 97. |
Balance of trade is |
| A. | The difference between balance on current account and capital account |
| B. | Same as the balance of merchandize trade |
| C. | Same as the balance of current account |
| D. | Overall BoP balance. |
| Answer» B. Same as the balance of merchandize trade | |
| 98. |
All entries in the balance of payments should collectively sum to |
| A. | GDP of that country |
| B. | GNP of that country |
| C. | Zero |
| D. | Exports of that country. |
| Answer» C. Zero | |
| 99. |
In the BoP statement, current account includes
|
| A. | (i) only |
| B. | Both (i) and (ii) above |
| C. | Both (i) and (iii) above |
| D. | Both (ii) and (iii) above |
| Answer» A. (i) only | |
| 100. |
If the balance on current and capital accounts of Balance of Payments (BoP) taken together is negative, then |
| A. | It is a case of BoP surplus |
| B. | It is a case of BoP surplus where the official reserve account is in surplus |
| C. | It is a case of BoP deficit |
| D. | It is case of BoP disequilibrium |
| Answer» C. It is a case of BoP deficit | |
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