Group 2 Lesson 2

The more risk an investment has the .........

• the more a consumption should consume

• the more an investment should invest

• the more a consumer should supply for a product

• the more an investor should demand for a return

What is "Utility"?

• demand-need power of a good/service

• want-satisfying power of a good/service

• supply-want power of a good/service

• require-satisfying power of a good/service

The purpose of utility analysis is ........

• analyzing how people behave rather than how they think

• analyzing how much money you make

• analyzing how to determine the future prosperity

• analyzing how to work by saving and investing

Higher number of goods purchased results ........

• lower total utility and lower marginal utility

• lower total utility but higher marginal utility

• higher total utility and higher marginal utility

• higher total utility but lower marginal utility

How to describe "Law of Diminishing Marginal Utility"?

• Added consumption increases as a consumer acquires additional units of a product

• Added satisfaction declines as a consumer acquires additional units of a product

• Dropped out consumption as a consumer acquires additional units of a product

• Dropped out satisfaction as a consumer acquires additional units of a product

If marginal utility is greater than price, the consumer can .....

• worsen well being by purchasing less

• worsen well being by purchasing more

• improve well being by purchasing less

• improve well being by purchasing more

A financial ratio that indicates how profitable a business is and how efficiently capital is applied called........

• government assistance

• return on capital employed

• tax incentives and relief

• subsidies

What is it determines the firms profit and survival?

• profit, product, proof

• place, profit, product

• plan, place, profit

• price, plan, place

How to calculate "Net Debt"?

• revenue + cost

• revenue - cost

• interest bearing debt - excess cash

• interest bearing debt + excess cash

There are 4 fundamental ways to generate greater shareholder value:

• decrease unit price, sell more units, increases fixed cost utilization, decrease unit cost

• increase unit price, sell more units, increases fixed cost utilization, decrease unit cost

• decrease unit price, sell less units, increases fixed cost utilization, decrease unit cost

• increase unit price, sell more units, decreases fixed cost utilization, increase unit cost