Accounting and Finance MCQs

The curve illustrates scarcity, choice, efficiency, and opportunity cost.
Points beyond it are unattainable with current resources.

Inelastic demand has an absolute elasticity below one.
Necessities with few substitutes often show this behavior.

Standard unemployment measures exclude people not participating in the labor force.
Definitions vary in detail across statistical systems.

Pollution may harm people not involved in production or consumption.
Corrective taxes or regulation can internalize the cost.

Resources are not fully or efficiently employed at an interior point.
Output could increase without sacrificing another good.

Positive cross elasticity suggests substitutes, while negative suggests complements.
It measures relationships between goods.

Frictional unemployment arises from normal labor-market movement.
Better information can reduce its duration.

Education and vaccination may benefit society beyond the direct user.
Subsidies or public provision can encourage socially desirable levels.

More resources or better technology increase productive capacity.
The economy can then produce more combinations of goods.

Positive income elasticity indicates a normal good.
A negative value indicates an inferior good.

Technology, trade, and industry change can make existing skills less demanded.
Retraining and mobility may help.

A Pigouvian tax raises private cost toward social cost.
It gives an incentive to reduce harmful activity.