ECONOMICS

1. Price ceiling set by the government for certain crops is aimed at assisting.
a. Middlemen b. Producers c. Consumers d. workers e. nota

2. The ratio of preference share and loan capital and loan capital to ordinary share capital is called.
a. Gearing b. liquidity c. Capital index d. fluidity e. solvency

3. The decline in total output, income employment and trade, usually lasting 6 months to a year and marked by
widespread contraction in many sectors of economy.
a. Deflation b. Recession c. Depression d. inflation e. crisis

4. Exactly 140 years ago, your great grandfather deposited $200 in a bank as a part of a savings plan. He forgot
all about the deposit during his lifetime. The bank notified your family that the account was worth $191.516.
What was the effective annual interest rate in the situation?
a. 5.025% b. 50.25% c.4.705% d. 47.25% e nota

5. Among the following cost items, the one that can be classified as fixed is:
a. Raw material b. direct labor c. depreciation on building d. electricity

6. Among the following cost items, the one that can be classified as fixed is;
a. raw material b. direct labor c. depreciation on building d. electricity

7. About how long will it take for P10,000 invested at 5 % per year compounded annually to double in value?
a. 12 years b. 16 years c. 15 years d. 20 years

8. A dam was constructed for $20,000. The annual maintenance cost is $5,000. If the interest is 5%, the
capitalized of the dam including maintenance is:
a. 250,000 b. 300,000 c. 350,000 d. 400,000