219. The major difference between perfect competition and monopolistic competition is

by
A) Number of firms
B) Differentiated product
C) Rate of profit
D) Free exit and entry
✅ ANSWER: B
The major difference between perfect competition and monopolistic competition is differentiated product. Product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors’ products as well as a firm’s own products.

216. In pure play method, a company can calculate its own cost of capital with help of averaging an

by
A) other company capital policy
B) other company beta
C) other company cost
D) other division cost
✅ ANSWER: B
In pure play method, a company can calculate its own cost of capital with help of averaging an other company beta. Pure play method is an approach used to estimate beta coefficient of a company whose stock is not publicly traded.

213. Which one is not a server level threat?

by
A) Malicious code
B) CGI threats
C) Database threats
D) Buffer overflows
✅ ANSWER: A
Malicious code is not a server level threat. Malicious code is the term used to describe any code in any part of a software system or script that is intended to cause undesired effects, security breaches or damage to a system. Malicious code is an application security threat that cannot be efficiently controlled by conventional antivirus software alone.

210. What does moral hazard indicate?

by
A) The possibility that client would undertake dangerous expeditions after taking a policy
B) The possibility of ending own life or the life of another
C) Both the above instances
D) None of the three
✅ ANSWER: C
Moral hazard indicates that the possibility that client would undertake dangerous expeditions after taking a policy and the possibility of ending own life or the life of another.

206. Who are the likely buyers of variable life policies?

by
A) Persons with low risk appetite
B) Persons who look for predetermined and fixed returns of interest
C) Persons with comfort in equity on account of their knowledge
D) Generally young persons
✅ ANSWER: C
Persons with comfort in equity on account of their knowledge are the likely buyers of variable life policies. Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy.

202. A representative firm works under __________ conditions.

by
A) average
B) ideal
C) bad
D) good
✅ ANSWER: A
A representative firm works under average conditions. Representative firm must be one which has had a fairly long life, and fair success, which is managed with normal ability, and which has normal access to the economies, external and internal, which belong to that aggregate volume of production; account being taken of the class of goods produced, the conditions of marketing them and the economic environment generally.