Author name: Administrator

2467. Law of return applies to firms working in

Perfect competition
Monopoly
Small firm
All kinds of market situations
✅ The correct answer is D.
Law of return applies to firms working in all kinds of market situations. A firm’s production function could exhibit different types of returns to scale in different ranges of output.

2449. Which of the below insurance proposal is not likely to qualify under non-medical underwriting?

Savita, aged 26 years, working in an IT company as a software engineer
Mahesh, aged 50 years, working in a coal mine
Satish, aged 28 years, working in a bank and has applied for an insurance cover of Rs. 1 crore
Pravin, aged 30 years, working in a departmental store and has applied for an endowment insurance plan for a tenure of 10 years
✅ The correct answer is B.
Mahesh, aged 50 years, working in a coal mine is not likely to qualify under non-medical underwriting.

233. When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called

Contingent liability
Provision
Secured loan
None of the above
✅ The correct answer is A.
When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called Contingent liability. Contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event.

2453. A firm earns economic profit when total profit exceeds

Normal profit
Implicit costs
Explicit costs
Variable costs
✅ The correct answer is A.
A firm earns economic profit when total profit exceeds Normal profit. Economic profit is the profitability measurement that calculates the amount that revenues received from selling a product exceeds opportunity costs incurred from using resources to make and sell these products.

2455. Who is primary underwriter or field underwriter?

Development officer
Insured
Agent
Insurer
✅ The correct answer is C.
Agent is known as primary underwriter. He or she is in the best position to ascertain if the facts being presented are true, since he or she is in the direct contact with the proposed life.

2458. The AR curve and industry demand curve are same in case of

Monopoly
Oligopoly
Perfect competition
None of the above
✅ The correct answer is A.
The AR curve and industry demand curve are same in case of Monopoly. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. Perfect competition produces an equilibrium in which the price and quantity of a good is economically efficient.
Scroll to Top