McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .
| 351. |
Which of the following faces a downward sloping demand curve |
| A. | Firm in a competitive market |
| B. | Firm in a monopoly market |
| C. | Both |
| D. | None |
| Answer» B. Firm in a monopoly market | |
| 352. |
Average Revenue of a monopolist firm is |
| A. | Always more than the Marginal revenue |
| B. | Always less than the Marginal revenue |
| C. | Equal to marginal revenue |
| D. | Any of the above three possible |
| Answer» A. Always more than the Marginal revenue | |
| 353. |
Demand curve of an Oligopoly firm is characterized by |
| A. | Horizontal to X axis |
| B. | Kink at the price |
| C. | U shaped curve |
| D. | A liner line |
| Answer» B. Kink at the price | |
| 354. |
Which of the following statement is true |
| A. | Monopolist are price takers |
| B. | Monopoly firm earn abnormal profits |
| C. | A Monopoly firm faces straight demand line |
| D. | Supply curve of a monopoly firm is positive sloped |
| Answer» A. Monopolist are price takers | |
| 355. |
What will happen if a firm in perfect competitive market, increase its output by 50% |
| A. | Total sales revenue will also increase by 50% ; (b) |
| B. | Selling price will come down by 50% |
| C. | Total sales revenue will decrease by 50% |
| D. | Profit will increase by 25% |
| Answer» A. Total sales revenue will also increase by 50% ; (b) | |
| 356. |
…………… it is the form of the market in which the only seller of a commodity has fully control over the prices |
| A. | Monopoly |
| B. | Pure monopoly |
| C. | Simple monopoly |
| D. | All the three |
| Answer» B. Pure monopoly | |
| 357. |
Stock of both man made goods as well as natural resources like capital is called – |
| A. | National wealth |
| B. | National stock |
| C. | No less no gain level |
| D. | All the three |
| Answer» B. National stock | |
| 358. |
………….. is a situation in which it is not possible to make someone better off without making someone worse off |
| A. | Social efficiency |
| B. | Production efficiency |
| C. | Distribution efficiency |
| D. | Pareto efficiency |
| Answer» D. Pareto efficiency | |
| 359. |
…….. is the price at which demand for a commodity is equal to its supply |
| A. | Normal price |
| B. | Equilibrium price |
| C. | Short run price |
| D. | Secular price |
| Answer» B. Equilibrium price | |
| 360. |
When a monopolist charges different prices to each customer it is called price discrimination of – |
| A. | First order |
| B. | Second order |
| C. | Third order |
| D. | Fourth order |
| Answer» A. First order | |
| 361. |
The demand curve of a Monopoly firm is – |
| A. | Same that of a firm in a perfect competition |
| B. | Same as that of the total market demand |
| C. | Non-exist |
| D. | Perfectly elastic |
| Answer» B. Same as that of the total market demand | |
| 362. |
In a perfect competitive market price determines – |
| A. | What to buy |
| B. | What to produce |
| C. | Both |
| D. | None |
| Answer» C. Both | |
| 363. |
Total profit of a firm in a perfect competitive market is – |
| A. | Total revenue less total cost |
| B. | Marginal revenue less marginal cost |
| C. | Total revenue less marginal cost |
| D. | Total revenue less variable cost |
| Answer» A. Total revenue less total cost | |
| 364. |
National income is the ……………. Of all the goods and services produced by a country during a period of year |
| A. | Physical quantity |
| B. | Money value |
| C. | `Value |
| D. | All the three |
| Answer» B. Money value | |
| 365. |
GPD is the money value of final goods and serviced produced in the…………. Of a country during an accounting year |
| A. | Domestic territory |
| B. | Political territory |
| C. | Specific area |
| D. | FTZ area |
| Answer» A. Domestic territory | |
| 366. |
Which of these is/ are included in the domestic territory of a country? |
| A. | Territory lying within the political frontier including territorial water of the country. |
| B. | Ships and aircrafts operated by the residents of the country between two or more countries. |
| C. | Fishing vessels, oil and natural gas rigs and floating platforms. |
| D. | All the three |
| Answer» B. Ships and aircrafts operated by the residents of the country between two or more countries. | |
| 367. |
Choose the correct statement |
| A. | GPD at fc = GPD mp-IT +S |
| B. | GPD at fc = GDP mp-IT –S |
| C. | GDP at fc = GDP mp+IT+S |
| D. | GDP at fc = GDP mp+IT-S |
| Answer» A. GPD at fc = GPD mp-IT +S | |
| 368. |
Which of the following equation is correct? |
| A. | GNP=GDP+Net factor income from abroad |
| B. | GNP=GDP+Gross factor income from abroad |
| C. | GNP=GDP-Net factor income from abroad |
| D. | GNP=GDP-Gross factor income from abroad |
| Answer» A. GNP=GDP+Net factor income from abroad | |
| 369. |
Which of these items are excluded in the computation of National Income under value added method? |
| A. | Own acquired fixed assets by the Government enterprises, Govt. and household |
| B. | Production for self-consumption |
| C. | Imputed rent for own occupied house |
| D. | All the three |
| Answer» D. All the three | |
| 370. |
In agricultural sector net value added is estimated by |
| A. | Income method |
| B. | Expenditure method |
| C. | Production method |
| D. | All the three |
| Answer» C. Production method | |
| 371. |
Which of these are not included in territory sector? |
| A. | Banking |
| B. | Insurance |
| C. | Agriculture |
| D. | Transport |
| Answer» C. Agriculture | |
| 372. |
Which of these indicates increase in welfare of the people? |
| A. | Increase in production of war time equipments |
| B. | Increase in production of food grains |
| C. | Spurt in smuggling activities |
| D. | Increase in production of Heroine, smack et(c) |
| Answer» A. Increase in production of war time equipments | |
| 373. |
Which of the following is an example of an intermediate goods. |
| A. | A Tata Indica sold by a dealer of second hand car |
| B. | Steel and cement used to construct a flyover |
| C. | Farming crop purchased by FCI |
| D. | All the three |
| Answer» B. Steel and cement used to construct a flyover | |
| 374. |
GDP is defined as |
| A. | The market value of all goods and services produced in the domestic economy during the year |
| B. | Current value of all the capital goods produced in the country. |
| C. | Sum of goods and services exported during the year. |
| D. | All the capital goods and consumable goods produced and sold during the year |
| Answer» A. The market value of all goods and services produced in the domestic economy during the year | |
| 375. |
If in 2000 nominal GDP is = `70000 Crore and the prices in 2000 were 40% more than the real GDP in 2000 using 1996 as a base year is |
| A. | `45,000 Crore |
| B. | `50,000 Crore |
| C. | `42,000 Crore |
| D. | `98000 Crore |
| Answer» B. `50,000 Crore | |
| 376. |
Assuming consumption C= `45000, Investment I= `1000, Government Purchase G= `1200, Exports=`450, Depreciation = `600, and Indirect Tax= `500, then GDP will be |
| A. | `5900 |
| B. | `6600 |
| C. | `6000 |
| D. | `5100 |
| Answer» B. `6600 | |
| 377. |
In question No. 386, the National Income will be |
| A. | `5000 |
| B. | `6600 |
| C. | `6000 |
| D. | `5500 |
| Answer» D. `5500 | |
| 378. |
If the cost of production of a cake in bakery is `20 per cake which is ultimately sold to the customer after packing and transporting to the retail shops at `25 per cake. The value added is |
| A. | `5 |
| B. | `20 |
| C. | `25 |
| D. | `4 |
| Answer» A. `5 | |
| 379. |
In a closed economy |
| A. | GDP=GNP |
| B. | GDP>GNP |
| C. | GDP<GNP |
| D. | All the three are possible |
| Answer» A. GDP=GNP | |
| 380. |
In an open economy |
| A. | GDP=GNP |
| B. | GDP>GNP |
| C. | GDP<GNP |
| D. | All the three are possible |
| Answer» D. All the three are possible | |
| 381. |
Which of these is an example of a transfer payment? |
| A. | Profit |
| B. | Retirement pension |
| C. | Rent |
| D. | Transportation and freight charges |
| Answer» B. Retirement pension | |
| 382. |
GDP can be defined as sum of the market value of the……….. |
| A. | Final manufactured goods and services |
| B. | Intermediate goods |
| C. | Goods and services exported |
| D. | Sub-standard goods and discarded services |
| Answer» A. Final manufactured goods and services | |
| 383. |
A read garment factory pays `100 for suit length and `5 for cotton thread purchased and `50 to the labour for stitching the suit which he sells in the market for `750. His contribution to GDP is |
| A. | `595 |
| B. | `750 |
| C. | `600 |
| D. | `400 |
| Answer» B. `750 | |
| 384. |
Which of these would not be part of GDP? |
| A. | Sale of Intermediate goods |
| B. | Income from illegal betting |
| C. | Household services rendered by a house wife in her family |
| D. | All the three |
| Answer» D. All the three | |
| 385. |
Real GDP is measured in………….prices |
| A. | Base year |
| B. | Current year |
| C. | 1980 |
| D. | 2000 |
| Answer» A. Base year | |
| 386. |
Nominal GDP is measured in ………………..prices |
| A. | Base year |
| B. | Current year |
| C. | 1980 |
| D. | 2000 |
| Answer» B. Current year | |
| 387. |
Which of these is not a part of GDP for the year 2006? |
| A. | Earning of an International fashion show organized in Delhi |
| B. | Sale of ticket for Republic day parade. |
| C. | Fee of a practicing Chartered Accountant |
| D. | A house built in 2000 and first sold in 2006 |
| Answer» D. A house built in 2000 and first sold in 2006 | |
| 388. |
If GDP exceeds GNP the possible reasons could be |
| A. | Foreigners are earning more in India than Indians are earning in foreign countries |
| B. | High incidence of plant and machinery wear out |
| C. | Indian are earning more in foreign countries than foreigners earnings in India |
| D. | None |
| Answer» A. Foreigners are earning more in India than Indians are earning in foreign countries | |
| 389. |
……………… is an index of price change for goods and services included in GDP |
| A. | Price index |
| B. | Sensex |
| C. | GDP deflator |
| D. | None |
| Answer» C. GDP deflator | |
| 390. |
From the following equation estimated consumption when disposal income is `1000 is C = `200+0.80Yd |
| A. | `1000 |
| B. | `1100 |
| C. | `900 |
| D. | `800 |
| Answer» A. `1000 | |
| 391. |
The vital data of a country are given below: GNP at MP = `99,000, Net factor income abroad = (-) 560 Capital consumption allowance = `6,100, Net indirect tax = `8,470 From the above, estimate of GNP at factor cost = |
| A. | `90,530 |
| B. | `91,000 |
| C. | `89,990 |
| D. | `93,100 |
| Answer» A. `90,530 | |
| 392. |
Based on the data given in question No. 401. NNP at factor cost |
| A. | 84,430 |
| B. | 87000 |
| C. | 86540 |
| D. | 88000 |
| Answer» A. 84,430 | |
| 393. |
Based on the data given in question No. 401.NDP at FC |
| A. | 86,430 |
| B. | 87000 |
| C. | 84990 |
| D. | 88000 |
| Answer» C. 84990 | |
| 394. |
Based on the data given in question No. 401.NDP at MP |
| A. | 88,430 |
| B. | 93460 |
| C. | 86540 |
| D. | 88000 |
| Answer» B. 93460 | |
| 395. |
Which of the following statement is true? |
| A. | Value added = total sales + closing stock of finished goods – opening stock of finished goods – total expenditure on raw material – intermediate goods |
| B. | Value added = total sales + closing stock of finished goods and semi finished goods – total expenditure on raw material – intermediate goods |
| C. | Value added = total sales + closing stock of finished goods and semi-finished goods-opening stock of finished goods and semi finished goods-total expenditure on raw material |
| D. | Value added = total sales + closing stock of finished goods and semi finished goods – opening stock of finished goods and semi finished goods – total expenditure on raw material – intermediate goods. |
| Answer» D. Value added = total sales + closing stock of finished goods and semi finished goods – opening stock of finished goods and semi finished goods – total expenditure on raw material – intermediate goods. | |
| 396. |
True value added |
| A. | value added-depreciation |
| B. | Value added – depreciation – tax |
| C. | Value added – interest – tax |
| D. | Value added – depreciation-interest |
| Answer» A. value added-depreciation | |
| 397. |
If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent |
| A. | Depreciation |
| B. | Rate of inflation |
| C. | Rate of interest |
| D. | Tax burden |
| Answer» B. Rate of inflation | |
| 398. |
Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. |
| A. | 12% |
| B. | 10% |
| C. | 10.5% |
| D. | 9.5% |
| Answer» A. 12% | |
| 399. |
Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be |
| A. | 2.5% |
| B. | 3% |
| C. | 4.25% |
| D. | 3.5% |
| Answer» B. 3% | |
| 400. |
If we add……………. to net domestic production we get GDP |
| A. | Depreciation |
| B. | Direct tax |
| C. | Indirect tax |
| D. | Interest payment |
| Answer» A. Depreciation | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.