MCQ On Economics And Finance

1. What is the amount of del-credere commission when credit sale is Rs.200000 & cash sale is Rs.150000, the amount of commission being 10%?

20000

15000

35000

None of the three

The del-credere commission is a type of commission charged by a seller to guarantee payment from a buyer. In this case, the credit sale is Rs.200000 and the cash sale is Rs.150000. The commission rate is 10%. To calculate the del-credere commission, we need to find the total sales amount, which is the sum of the credit sale and cash sale (Rs.200000 + Rs.150000 = Rs.350000). Then, we multiply the total sales amount by the commission rate (Rs.350000 * 10% = Rs.35000). Therefore, the correct answer is 35000.

Explanation

The del-credere commission is a type of commission charged by a seller to guarantee payment from a buyer. In this case, the credit sale is Rs.200000 and the cash sale is Rs.150000. The commission rate is 10%. To calculate the del-credere commission, we need to find the total sales amount, which is the sum of the credit sale and cash sale (Rs.200000 + Rs.150000 = Rs.350000). Then, we multiply the total sales amount by the commission rate (Rs.350000 * 10% = Rs.35000). Therefore, the correct answer is 35000.

2. When the invoice/bill is made payable on a specific date then the due date is

That specific date

Date on which the term of the bill expires

The date which comes after adding stated number of days

The due date of the last bill

The due date refers to the specific date mentioned on the invoice or bill when the payment is expected to be made. This is the date by which the payment should be received to avoid any late fees or penalties. Therefore, the correct answer is "That specific date."

Explanation

The due date refers to the specific date mentioned on the invoice or bill when the payment is expected to be made. This is the date by which the payment should be received to avoid any late fees or penalties. Therefore, the correct answer is "That specific date."

3. Unemployment is lower in

Rural than urban areas

Urban than rural areas

Same in both rural and urban areas

None of these

Unemployment is lower in rural than urban areas because rural areas typically have fewer job opportunities and a smaller population, leading to less competition for employment. Additionally, rural areas often have a higher reliance on agriculture and natural resources, which can provide more stable employment opportunities compared to urban areas that are more susceptible to economic fluctuations.

Explanation

Unemployment is lower in rural than urban areas because rural areas typically have fewer job opportunities and a smaller population, leading to less competition for employment. Additionally, rural areas often have a higher reliance on agriculture and natural resources, which can provide more stable employment opportunities compared to urban areas that are more susceptible to economic fluctuations.

4. If each item is reduced by 15 , the standard deviation is

Increased by 15

Decreased by 15

Unchanged

None

When each item in a set is reduced by the same value, it does not affect the spread or variability of the data. The standard deviation measures the dispersion of the data points from the mean, and reducing each item by 15 does not change the relative distances between the data points. Therefore, the standard deviation remains unchanged.

Explanation

When each item in a set is reduced by the same value, it does not affect the spread or variability of the data. The standard deviation measures the dispersion of the data points from the mean, and reducing each item by 15 does not change the relative distances between the data points. Therefore, the standard deviation remains unchanged.

5. If electricity demand is inelastic and electric rates increase, which of the following is likely to occur?

Quantity demanded will fall by relatively large amount.

Quantity demanded will fall by relatively small amount.

Quantity demanded will rise in the short-run but fall in the long-run.

Quantity demanded will fall in the short-run but rise in the long-run.

When electricity demand is inelastic, it means that consumers are not very responsive to changes in price. Therefore, if electric rates increase, the quantity demanded will only decrease by a relatively small amount. This is because consumers are not easily deterred by the higher prices and still require electricity for their daily needs. In other words, the demand for electricity remains relatively stable even when prices go up.

Explanation

When electricity demand is inelastic, it means that consumers are not very responsive to changes in price. Therefore, if electric rates increase, the quantity demanded will only decrease by a relatively small amount. This is because consumers are not easily deterred by the higher prices and still require electricity for their daily needs. In other words, the demand for electricity remains relatively stable even when prices go up.