Tag: prices and cost of living

Quizzes (5) Questions (50)

Questions Related to prices and cost of living

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

When price discrimination extends to two or more countries it is called __________.

  1. dumping

  2. differentiation

  3. dual pricing

  4. price preference
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dumping is, in general, a situation of international price discrimination where the price of a product which is sold to the importing country is less than the price of the same product when sold in the market of the exporting country. It is generally perceived that dumping would result in unfair trade.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

Long run determinant of price, is equal to ______.

  1. marginal utility

  2. market forces

  3. cost of production

  4. brand value
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is believed in long run production function,total revenue is equal to total cost . There is no extra normal profit or abnormal loss.Thus , in long run price of the product is equal to the cost of production.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

The Fair and Remunerative Price (FRP) of sugarcane is approved by the _________________.

  1. Cabinet Committee on Economic Affairs

  2. Commission for Agricultural Costs and Prices

  3. Directorate of Marketing and Inspection, Ministry of Agriculture

  4. Agricultural Produce Marketing Committee
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The FRP is the least amount price that sugar mills have to pay to sugarcane farmers. It is strong-minded on the basis of the recommendation of Commission for undeveloped Costs and Prices (CACP) and after discussion with State Governments and other stakeholders. 

The Cabinet Committee on Economic Affairs (CCEA) chair by Prime Minister Narendra Modi has standard the suggestion in respect of strength of mind of 'Fair and Remunerative Price' of sugarcane payable by sugar mills for 2019-20 sugar season. 

Thus, the correct option is A.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

The basis of determining dearness allowance to employee in India is ______.

  1. national income

  2. consumer price index

  3. standard of living

  4. per capita income
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A consumer price index (CPI) measures changes in the price level of market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

The price which a consumer would be willing to pay for a commodity equals to his ________.

  1. Total utility

  2. Marginal utility

  3. Average utility

  4. Does not have any relation to any of the above options
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The price which a consumer pays for a commodity is always less than what he is willing to pay for it, so that the satisfaction which he gets from its purchase is more than the price paid for it and thus he derives a surplus satisfaction which Marshall calls Consumer’s Surplus (CS). 

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

__________ refers to the exchange value of a commodity expressed in terms of money.

  1. Value

  2. Utility

  3. Price

  4. Goods
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Price is the quantity of payment or compensation given to the opponent in return for goods or services. In modern economies, prices are generally expressed in units of some form of currency as exchange values.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

Last step of cost-based pricing is to _______.

  1. Set price based on cost

  2. Convince buyer about product's value

  3. Design a product

  4. Determine cost of product
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Implies a method in which an organization tries to win loyal customers by charging low prices for their high- quality products. The organization aims to become a low cost producer without sacrificing the quality. It can deliver high- quality products at low prices by improving its research and development process. Value pricing is also called value-optimized pricing.

Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

Value that customers give to get benefits of products or services is classified as ______.

  1. Discount

  2. Value added tax

  3. Price

  4. Tax
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
  • A value that will purchase a finite quantity, weight, or other measure of a good or service.
  • As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved.