1. The privatization of public enterprises will lead to efficient management of resources in the economy. This statement can best be described as_____________
- A. deductive reasoning
- B. positive reasoning
- C. normative reasoning
- D. inductive reasoning
Correct Option: Answer is D
Inductive reasoning is a type of logical thinking that involves forming generalizations based on specific incidents you’ve experienced, observations you’ve made, or facts you know to be true or false.
2. The type of business finance that entitles the holder to a fixed rate of dividend is______________
- A. bank load
- B. debenture
- C. preferred stock
- D. semi-fixed
Correct Option: Answer is C
Preferred shareholders have priority over common stockholders when it comes to dividends, which generally yield more than common stock and can be paid monthly or quarterly. … 1 Preferred stock combines features of debt, in that it pays fixed dividends
3. In the long run, all production factors are____________
- A. variable
- B. fixed
- C. semi-variable
- D. semi-fixed
Correct Option: Answer is A
4. Commercial bank reserves at the Central Bank____________
- A. advancing trade, prospects
- B. controlling credit and money supply
- C. reducing bank frauds
- D. discouraging banking operations
Correct Option: Answer is A
5. If the standard deviation of a given data is 8.2, find its variance_______________
- A. 82.0
- B. 91.8
- C. 67.2
- D. 4.1
Correct Option: Answer is C
- Variance (S2) = average squared deviation of values from mean.
- Standard deviation (S) = square root of the variance.
therefore, Variance = square of (SD) = 8.2 x 8.2 = 67.24
6. The ultimate objectives of economics is to_________?
- A. decide under what circumstances that government should intervene in the economy
- B. Organize production at the lowest cost
- C. Make the best use of scarce resources
- D. make efforts to understands how the economy works
Correct Option: Answer is C
7. The savings deposit in a commercial bank is called____________?
- A. near money
- B. call money
- C. capital
- D. fund
Correct Option: Answer is C
8. A major determinant of the demand for a luxury good is____________?
- A. the price of other goods
- B. the price of the good
- C. tastes and fashion
- D. the income of consumers
Correct Option: Answer is A
9. When a variable is associated with time period, it is_____________
- A. circular
- B. a flow
- C. static
- D. a stock
Correct Option: Answer is A
10. The factor of production that has the highest degree of mobility is__________?
- A. entrepreneurship
- B. land
- C. labour
- D. capital