Accounting and Finance MCQs

Decentralization can improve local responsiveness and accountability.
It also requires adequate capacity and coordination.

A surplus creates downward pressure on price.
Sellers offer more than buyers wish to purchase.

GDP per capita is a rough measure of average output or income per person.
It does not show how income is distributed.

One person's use does not significantly reduce another's, and exclusion is difficult.
National defense is a standard example.

Scarcity forces individuals and societies to make choices.
It exists because resources cannot satisfy every possible want.

Elasticity expresses percentage quantity change relative to percentage price change.
It allows comparisons across units and markets.

Inflation reduces the purchasing power of money.
It is measured using price indexes over time.

Non-excludability makes voluntary financing difficult.
Government provision or collective funding may address the problem.

Choosing one option means giving up another.
Opportunity cost measures the most valuable sacrificed alternative.

Elastic demand has an absolute elasticity greater than one.
Consumers respond relatively strongly to price changes.

Deflation means average prices are falling.
It can increase the real burden of debt and weaken spending.

Externalities cause market prices to omit some social costs or benefits.
Pollution and vaccination are common examples.