Accounting and Finance MCQs

Income, tastes, population, expectations, and related-goods prices can shift demand.
The product's own price causes movement along the curve.

A monopolist has significant control over supply and price.
Its power is limited by demand, regulation, and potential alternatives.

Cost-benefit analysis discounts future social costs and benefits.
It helps assess whether a project creates net social value.

For normal goods, income and demand move in the same direction.
Most goods are normal over relevant income ranges.

Firms compete through price, quality, branding, and location.
Entry is generally easier than in monopoly or oligopoly.

The benefit principle links tax payment with public-service benefit.
It is easier to apply to services with identifiable users.

Consumers may replace inferior goods with preferred alternatives as income grows.
The term describes demand behavior, not quality.

Each major firm's decisions affect rivals.
Oligopolies may compete aggressively or coordinate explicitly or implicitly.

Examples include equal loan payments and rental receipts.
An ordinary annuity pays at period-end, while an annuity due pays at period-start.

Discounted payback recognizes the time value of money.
It still ignores cash flows after the cutoff.

Systematic risk arises from broad economic and market factors.
It is the risk rewarded in models such as CAPM.

Domestic debt is denominated and held within the national financial system, though definitions vary.
It can affect local interest rates and financial markets.