ECO501 Midterm Solved Past Papers

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ECO501 Midterm Solved Paper By Raise For Success

Question No 1:
Which of the following is first stage of demographic transition model?

• Continued high birthrates, declining death rates
• High birthrates and death rates CORRECT
• Falling birthrates and death rates
• Low birth rates and Low death rates, eventually stabilizing

Question No 2:
In which of the given business form, business income is taxed twice?

• Partnership
• Corporate form CORRECT
• Sole proprietorship
• None of the given options

Question No 3:
The conflict of interest between stockholders and management is known as:

• Agency problem CORRECT
• Interest conflict
• Agency cost
• Management conflict

Question No 4:
A company having a current ratio of 1 will have ________ net working capital.

• Positive
• Zero CORRECT
• Negative
• None of the given options

Question No 5:
The difference between current assets and current liabilities is known as:

• Short-term Ratio
• Current Ratio
• Net working Capital CORRECT
• Surplus Asset

Question No 6:
Which of the following expressions depicts the relationship between annuity due and ordinary annuity?

• Ordinary annuity = Annuity due x(1+r)
• Annuity due x Ordinary annuity = (1+r)
• Annuity due x Ordinary annuity x (1+r)
• Annuity due = Ordinary annuity x (1+r) CORRECT

Question No 7:
Which of the following term refers to establish of a standard to follow for comparison?

• Comparison
• Standardizing
• Benchmarking CORRECT
• Evaluation

Question No 8:
Which of the following include in the period cost?

• Selling expense CORRECT
• Manufacturing overhead
• Raw material
• Direct labor

Question No 9:
Which of the following is important in reducing birth rates?

• All of the given options CORRECT
• Expanded schooling opportunities so that parents can better substitute child quality for large numbers of children
• Through the redistribution of income and assets from rich to poor
• A reduction in infant mortality through expanded public health programs and better nutritional status

Question No 10:
Children in poor societies are seen partly as:

• Public goods CORRECT
• Consumption goods
• Saving goods
• Investment goods