Author name: Administrator

927. Larger production of ___ goods would lead to higher production in future

Consumer goods
Capital goods
Agricultural goods
Public goods
✅ The correct answer is B.
Larger production of Capital goods goods would lead to higher production in future. If investment in capital good increases ,in turn it further increases the production of consumer goods in the long run. So, if an economy is investing more in capital goods, it shows signs of growth in near future, an increase in GDP.

928. Quantity demanded is a

Flow concept
Stock concept
Both ‘a’ and ‘b’
None of the above
✅ The correct answer is A.
Quantity demanded is a Flow concept. The quantity of the current production of a commodity which moves from a factory to the market is called flow. The aggregates of macroeconomics are of two kinds some are stocks, typically the stock of capital ‘k’ which is a timeless concept.

930. Government spending, if it exceeds federal government tax revenues then it is classified as

Federal Reserve
federal budget
budget surplus
budget deficit
✅ The correct answer is D.
Government spending, if it exceeds federal government tax revenues then it is classified as budget deficit. A budget deficit is a financial loss for during a period where expenses exceed revenues. This concept is often used in business but more commonly used to refer to governmental spending in excess of revenues collected.

931. Method of inventory recording gives lower cost of goods sold in income statement is classified as

last in first out
last out receivable
First out receivable
First in first out
✅ The correct answer is D.
Method of inventory recording gives lower cost of goods sold in income statement is classified as First in first out. First in, first out (FIFO) is an asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first and may be used by an individual or a corporation.

934. Mixed economy means an economy where

Both agriculture and industry are equally promoted by the state
There is co-existence of public sector along with private sector
There is importance of small scale industries along with heavy industries
Economy is controlled by military as well as civilian rulers
✅ The correct answer is B.
Mixed economy means an economy where there is co-existence of public sector along with private sector. All modern economies are mixed where the means of production are shared between the private and public sectors. Also called dual economy.

936. The fixed proportion of working capital should be generally financed from the ____ capital sources.

fixed
variable
semi-variable
borrowed
✅ The correct answer is D.
The fixed proportion of working capital should be generally financed from the borrowed capital sources. Borrowed capital consists of money that is borrowed and used to make an investment. It differs from equity capital, which is owned by the company and shareholders. Borrowed capital is also referred to as “loan capital.”

84. What does ‘aged debtors analysis’ signify?

shows how long debts have been outstanding
How old the customers are
How long does a business take to repay the bank loans
Minimum number of old debtors
✅ The correct answer is A.
Aged debtors analysis shows how long debts have been outstanding. An aged debtors report is a totalled list of all the invoices your customers haven’t yet paid you for, less any credit notes you’ve issued to your customers and not yet refunded them for.

920. An investor who writes stock call options in his own portfolio is classified as

due option
covered option
undue option
uncovered option
✅ The correct answer is B.
An investor who writes stock call options in his own portfolio is classified as covered option. A covered call option occurs when the investor owns the underlying asset and writes a call so that the underlying is on hand to sell to the option holder if the option is exercised. A covered put option occurs when the investor writes a put and has enough cash to cover the strike if the put is exercised.
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