GEAS CHAPTER 3 1

It is the amount that a seller could expect to obtain for property or goods sold on the open market.

• Face value

• Bond value

• Market value

• Fair value

If both the supply and the demand for a good increase, the market price will

• Rise only the case of inelastic supply function

• Fal only in the case of inelastic supply function

• Not be predictable with only these facts

• Rise only in the case of an inelastic demand function

What is another term for 'perfect competition'?

• Present worth factor

• Sinking fund factor

• Demand factor

• Capacity factor

What is a market situation whereby there is only one buyer of an item for which there is no goods substitute?

• Monopsony

• Monopoly

• Oligopoly

• Oligopsony

What is the type of annuity where the payments are made at the start of its period, beginning from the first period?

• Deferred annuity

• Annuity due

• Ordinary annuity

• Perpetuity

When one of the factors of production is fixed in quantity or so difficult to increase, increasing the other factors of production wil result in a less than proportionate increase in output. This statement si known as the

• Law of diminishing return

• Law of supply

• Law ofdemand

• Law ofsupply and demand

It is the function of interest and time that determines the cumulative amount of a sinking fund resulting from specific period deposits

• Present worth factor

• Sinking fund factor

• Demand factor

• Capacity factor

Defined as the production and consumption of goods and services of a community regarded as whole.

• Engineering economy

• Economy

• Market

• Market situation

What do you call the amount of property in which willing buyer wil pay to a wiling seller for the property when neither one is under the compulsion to buy nor sell?

• F a r v a l u e

• Market value

• Book value

• Goodwill value

What is the simplest form of business organization?

• Partnership

• Corporation

• Sole Proprietorship

• Enterprise