Author name: Administrator

825. Under law of demand

Price of commodity is an independent variable
Quantity demanded is a dependent variable
Reciprocal relationship is found between price and quantity demanded
All of the above
✅ The correct answer is D.
Under law of demand Price of commodity is an independent variable, Quantity demanded is a dependent variable and Reciprocal relationship is found between price and quantity demanded.

828. Which statement relates to macroeconomics?

Oil prices are rising in Pakistan
Profit rate is high on textile industry
The firms try to make huge profits
The government has failed to control inflation
✅ The correct answer is D.
The government has failed to control inflation relates to macroeconomics. Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contradictory monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.

829. Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as

valued approach
marketability approach
stock approach
binomial approach
✅ The correct answer is D.
Pricing model approach in which it is assumed that stock price can have one of two values of stock is classified as binomial approach. The binomial option pricing model is an options valuation method developed in 1979. The binomial option pricing model uses an iterative procedure, allowing for the specification of nodes, or points in time, during the time span between the valuation date and the option’s expiration date.

833. Risk free rate is subtracted from expected market return is considered as

country risk
diversifiable risk
equity risk premium
market risk premium
✅ The correct answer is C.
Risk free rate is subtracted from expected market return is considered as equity risk premium. Equity risk premium refers to the excess return that investing in the stock market provides over a risk-free rate.

809. Supply curve will shift when

Price falls
Price rises
Demand shots
Technology changes
✅ The correct answer is D.
Supply curve will shift when Technology changes. Factors that can shift a supply curve either to the left or the right are changes in input prices, number of sellers, technology, social concerns and expectations.

811. Difference between flexible budget amount and corresponding actual result is called

corresponding variance
resultant variance
flexible budget variance
static budget variance
✅ The correct answer is C.
Difference between flexible budget amount and corresponding actual result is called flexible budget variance. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget.
Scroll to Top