Practice Pakistan's most useful MCQs for competitive exams

What is considered as the basic consuming or demanding unit of a commodity ?

• (A)  Seller
• (B)  Manufacturer
• (C)  Producer
• (D)  Buyer or consumer

Answer

Submitted By :Ali Uppal

What is a market situation whereby there is only one buyer of an item for which there is no goods substitute ?

• (A)  Monopsony
• (B)  Monopoly
• (C)  Oligopoly
• (D)  Oligopsony

Answer

Submitted By :Ali Uppal

What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration ?

• (A)  Seller
• (B)  Manufacturer
• (C)  Producer
• (D)  Buyer or consumer

Answer

Submitted By :Ali Uppal

What market situation exists where there are few sellers and few buyers ?

• (A)  Oligopoly
• (B)  Oligopsony
• (C)  Bilateral oligopoly
• (D)  Bilateral Oligopsony

Answer

Submitted By :Ali Uppal

If there is only one seller and many buyers, the market situation is ______________________?

• (A)  Duopsony
• (B)  Oligopoly
• (C)  Oligopsony
• (D)  Monopoly

Answer

Submitted By :Ali Uppal

What market situation exists where there is only one buyer and only one seller ?

• (A)  Monopsony
• (B)  Monopoly
• (C)  Bilateral monopsony
• (D)  Bilateral monopoly

Answer

Submitted By :Ali Uppal

If there are many sellers and few buyers, the market situation is ______________________?

• (A)  Duopsony
• (B)  Oligopoly
• (C)  Oligopsony
• (D)  Monopoly

Answer

Submitted By :Ali Uppal

Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest ?

• (A)  23.5 %
• (B)  24.7 %
• (C)  25.0 %
• (D)  25.8 %

Answer

Submitted By :Ali Uppal

The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now ?

• (A)  10 months
• (B)  11 months
• (C)  12 months
• (D)  13 months

Answer

Submitted By :Ali Uppal

A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?

• (A)  28.33 %
• (B)  29.17 %
• (C)  30.12 %
• (D)  30.78 %

Answer

Submitted By :Ali Uppal