Related Mcqs:

1. What market situation exists where there is only one buyer and only one seller ?

   A. Monopsony
   B. Monopoly
   C. Bilateral monopsony
   D. Bilateral monopoly

2. What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties ?

   A. Book value
   B. Market value
   C. Fair value
   D. Franchise value

3. What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?

   A. Effective rate of interest
   B. Nominal rate of interest
   C. Compound interest
   D. Simple interest

4. Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest ?

   A. 23.5 %
   B. 24.7 %
   C. 25.0 %
   D. 25.8 %

5. A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount ?

   A. 3.67 %
   B. 4.00 %
   C. 4.15 %
   D. 4.25 %

6. If there is only one seller and many buyers, the market situation is ______________________?

   A. Duopsony
   B. Oligopoly
   C. Oligopsony
   D. Monopoly

7. What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration ?

   A. Seller
   B. Manufacturer
   C. Producer
   D. Buyer or consumer

8. What is a market situation whereby there is only one buyer of an item for which there is no goods substitute ?

   A. Monopsony
   B. Monopoly
   C. Oligopoly
   D. Oligopsony

9. A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even ?

   A. 2.590
   B. 2,632
   C. 2,712
   D. 2,890

10. The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now ?

    A. 10 months
    B. 11 months
    C. 12 months
    D. 13 months