Tag: prices and cost of living

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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

Second step in cost-based pricing is to _______.

  1. Set price-based on cost

  2. Convince buyer about products value

  3. Design a product

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

Refers to the simplest method of determining the price of a product. In cost-plus pricing method, a fixed percentage, also called mark-up percentage, of the total cost (as a profit) is added to the total cost to set the price. For example, XYZ organization bears the total cost of Rs. 100 per unit for producing a product. It adds Rs. 50 per unit to the price of product as’ profit. In such a case, the final price of a product of the organization would be Rs. 150.

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

Sum of variable costs and fixed costs is called _______.

  1. Total costs

  2. Overhead costs

  3. Markup costs

  4. Both a and b
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total cost refers to the total expense incurred in reaching a particular level of output; if such total cost is divided by the quantity produced, average or unit cost is obtained. A portion of the total cost known as fixed cost—e.g., the costs of a building lease or of...

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

Major pricing strategies do not include ______.

  1. Competition based pricing

  2. Customer value based pricing

  3. Cost based pricing

  4. Discount and bonus pricing
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Here are some of the various strategies that businesses implement when setting prices on their products and services.

  • Pricing at a Premium. With premium pricing, businesses set costs higher than their competitors.
  • Pricing for Market Penetration.
  • Economy Pricing.
  • Price Skimming.
  • Psychology Pricing.
  • Bundle Pricing.
Multiple choice social science prices and cost of living value and price utility, value and price price rise/inflation

The author of the book, Value and Capital is _________.

  1. Irving Fisher

  2. Edgeworth

  3. R.G.D. Allen

  4. J.R. Hicks
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Value and capital is written by John Richard Hicks in 1939. This book focuses on the microeconomic theory. It aims to establish market equilibrium of the goods demanded in the economy using ordinal utility approach.

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

The broad purpose of price deals is _______________.

  1. to sell more of the product

  2. to get more profit

  3. both (a) and (b)

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Price deals mainly refers to reduction of the price of a product from its original MRP in order to maximize the sale ,as we know when the price of a product gets lower ,demand increase and thus the sales rise.

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

The internal factors which governing the prices are _________________.

  1. The costs and the management policy

  2. The elasticity of demand and supply

  3. The goodwill of the company

  4. The government policy
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

There are certain factors which govern the prices. Internal and external factors. Internal factors are the ones which are caused internally in the organization due to certain policies set by the firm. Thus the cost and management policies influence the prices. 

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

The fundamental elements in the price- setting process is ________________.

  1. Cost data

  2. Demand elasticity

  3. Managerial ability

  4. Wages and Salaries
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The main element in the price-setting process of a product is the cost data of the product. This is because for any producer, it is first important to cover up the cost of making the good and then add a profit margin to set the appropriate price. Thus, it is important to cover the cost so that the firm does not incur a loss.

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

Real value of a commodity is ________.

  1. the amount of other goods which have to be given up in order to get it.

  2. its exchange value

  3. its total utility

  4. its cost of production.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

At the time of barter system, commodities were exchanged for commodities. But after the introduction of money, the concept of opportunity cost came up where the real value of a commodity is measured in terms of the next best alternative that needs to be sacrificed to buy the commodity.

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

If the current price index of pulses is 295, what is the increase in prices of pulses in comparison to base years prices.

  1. 195%

  2. 295%

  3. 250%

  4. 195 times
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The price index is calculated relative to a base year, which is set at 100. An index of 295 means the price has risen to 295% of the base price, representing an increase of 295 - 100 = 195%.