The amount value of an asset in business records is not necessarily identical to the amount that the asset could bring on the open market. What is it called ?

Related Mcqs:

1. An outside professional conducts an examination of company’s accounting records in order to determine whether the company is maintaining records according to the generally accepted accounting principles. What this examination is called ?

   A. Checking
   B. Audit
   C. Stock-taking
   D. Accounting

2. Unlike a black market, what is called a system of secretly selling or trading commodities which is not necessarily illegal ?

   A. Grey market
   B. White market
   C. Red market
   D. Open market

3. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?

   A. downward sloping
   B. perfectly inelastic
   C. upward sloping
   D. perfectly elastic

4. With whom would you associate the following quote” The business of business is business” ?

   A. Milton Friedman
   B. Adam smith
   C. Alfred Marshal
   D. Karl Marx

5. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

   A. Three vases will be sold, and consumer surplus is Rs80
   B. One vase will be sold, and consumer surplus is Rs5.
   C. One vase will be sold, and consumer surplus is Rs30.
   D. Three vases will be sold, and consumer surplus is Rs0.
   E. Two vases will be sold, and consumer surplus is Rs5.

6. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

   A. Grey market
   B. Over-the counter (OTC)
   C. Open market
   D. Back market

7. A market structure in which many firms sell products that are similar but not identical is known as ?

   A. monopolistic competition
   B. monopoly
   C. perfect competition
   D. oligopoly

8. The asset market approach views exchange rates as being determined mainly by ?

   A. the use of import tariffs and quotas by governments
   B. the current account balance of each country
   C. the relative growth rate of national output between countries
   D. efforts of investors to balance their portfolios among financial assets denominated in different currencies

9. According to the asset market approach increased investor confidence in the Mexican economy would cause the peso to ?

   A. appreciate because of an increase supply of peso denominated assets
   B. depreciate because of an increased supply of peso denominated assets
   C. appreciated because of an increased demand for peso denominated assets
   D. depreciated because of an increased demand for peso denominated assets

10. When entering a building, Asim diverts his path to go through an open door rather than make the physical effort to open the closed door that is directly in his path. This is an example of:

    A. irrational behavior
    B. a lazy person
    C. marginal benefit-marginal cost analysis
    D. programmed learning

    Submitted by: Mansoor Ul Haque