Tag: value and price

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Questions Related to value and price

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.
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.