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285. An alternative to bonus method of distribution of surplus is

Lapsation method

Contribution method

Accumulation method

None of the above

✅ The correct answer is B.
An alternative to bonus method of distribution of surplus is Contribution method. Contribution method is a method of apportioning loss among multiple insurers.

287. When most people refer to the mean, they are referring to the______________.

median

arithmetic mean

geometric mean

cumulative mean

✅ The correct answer is B.
When most people refer to the mean, they are referring to the arithmetic mean. The arithmetic mean is the simplest and most widely used measure of a mean, or average.

289. An auction that has multiple winners that all pay the same price is an example of________.

uniform pricing

discriminatory pricing

bid rigging

price matching

✅ The correct answer is A.
An auction that has multiple winners that all pay the same price is an example of uniform pricing. It is also called “simple monopoly pricing”. The buyers are free to choose the quantity at a fixed price.

292. Examples of nonlinear cost functions are

step constant functions

step cost functions

step price functions

step object functions

✅ The correct answer is B.
Examples of nonlinear cost functions are step cost functions. The NCF represents a nonlinear multivariate functional of state variables.

294. If the marginal (additional) opportunity cost is a constant then the PPC would be

Straight line

Convex

Backward leading

Concave

✅ The correct answer is A.
If the marginal (additional) opportunity cost is a constant then the PPC would be Straight line. Ppc constant means goods are perfect substitute if they are perfect substitute then that curve is a straight line

297. Wages paid to workers of factory are termed as

workers premium

overtime premium

factory premium

wage premium

✅ The correct answer is B.
Wages paid to workers of factory are termed as overtime premium. An overtime premium is the additional payment made to an employee for hours worked in excess of 40 hours per week.

300. Situation in which new business reduces an existing business of firm is classified as

non-cannibalization effect

cannibalization effect

external effect

internal effect

✅ The correct answer is B.
Situation in which new business reduces an existing business of firm is classified as cannibalization effect. Market cannibalization is a sales loss caused by a company’s introduction of a new product that displaces one of its own older products rather than increasing the company’s overall market share.

303. A speculator who expects prices to fall in future and sell securities is called as ____________.

bear

bull

stag

lame duck

✅ The correct answer is A.
A speculator who expects prices to fall in future and sell securities is called as bear.

306. Which is correct about a decreasing Term Insurance?

Premium will increase over time

Premium will decrease over time

In decreasing term insurance the premium is constant through the term

Premium is returned periodically

✅ The correct answer is C.
In decreasing term insurance the premium is constant through the term. A term life insurance policy in which the policyholder pays a constant premium but the benefit decreases over time, either on a monthly, quarterly, or yearly basis.

309. First step in calculating value of stock with non-constant growth rate is to

estimate expected dividend

actual expected dividend

estimate number of share

estimate intrinsic shares

✅ The correct answer is A.
First step in calculating value of stock with non-constant growth rate is to estimate expected dividend. Dividend yield refers to a stock’s annual dividend payments to shareholders, expressed as a percentage of the stock’s current price.

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