wayground logo

Free Printable Worksheets

Font size

S
M
L
XL
Worksheets

Week 9 Lesson for Applied Economics

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

It is the study of how people decide to spend their money based on their individual preferences and budget constraints.

a)

consumer theory

b)

supplier theory

c)

Investor theory

d)

consumer sovereignty

2.

Which of the following are NOT the KEY TAKEAWAYS of Consumer Theory?

a)

Consumer theory is the study of how people decide to spend their money based on their individual preferences and budget constraints.

b)

Building a better understanding of individuals' tastes and incomes is important because these factors impact the shape of the overall economy.

c)

Consumer theory is not flawless, though, as it based on a number of assumptions about human behavior.

d)

Use different financial instruments to earn a rate of return to accomplish financial goals and objectives.

3.

It is an individual who are said to make calculated decisions when shopping, purchasing products that bring them the greatest benefit, otherwise known as maximum utility in economic terms.

a)

nonsatiation

b)

decreased marginal utility

c)

increased marginal utility

d)

utility maximization

4.

People are seldom satisfied with one trip to the shops and always want to consume more

a)

nonsatiation

b)

decreased marginal utility

c)

increased marginal utility

d)

utility maximization

5.

Decreasing marginal utility is the consumers lose satisfaction in a product the more they consume it

a)

True

b)

False

6.

It is the idea that it is consumers who influence production decisions.

a)

consumer theory

b)

supplier theory

c)

investor theory

d)

consumer sovereignty

7.

Consumer sovereignty has certain assumptions regarding consumer behavior EXCEPT____.

a)

Consumers are rational.

b)

Preferences exist over various goods and services in the market, using the concept of marginal utilities.

c)

Consumer are subject to budget constraints.

d)

Prices exist due to unlimited wants and the scarcity of resources.

e)

Manage the lifecycle

8.

If there is a marked down or a sale, consumers will respond by buying more goods and services.

a)

Consumers are rational.

b)

Preferences exist over various goods and services in the market, using the concept of marginal utilities.

c)

Consumer are subject to budget constraints.

d)

Prices exist due to unlimited wants and the scarcity of resources.

9.

It is the power to satisfy but is a subjective notion and a specific product will vary from one person to another.

a)

Utility

b)

Needs

c)

Preferences

d)

Wants

10.

It is the extra utility that a consumer derives from an additional unit of a good or service.

a)

marginal utility

b)

increased utility

c)

total utility

d)

decrease utility

11.

It is usually defined as a quantifiable summation of satisfaction or happiness obtained from consuming multiple units of a particular good or services.

a)

marginal utility

b)

increased utility

c)

total utility

d)

decrease utility

12.

While consumer wants and needs are unlimited, this is subject to their capacity to pay for these goods and services. The budget and income are used interchangeably.

a)

Consumers are rational.

b)

Preferences exist over various goods and services in the market, using the concept of marginal utilities.

c)

Consumer are subject to budget constraints.

d)

Prices exist due to unlimited wants and the scarcity of resources.

13.

There are five key stages in the lifecycle of any product or service EXCEPT___.

a)

development and introduction

b)

growth and maturiy

c)

decline

d)

lifecycle management

14.

You can extend the lifecycle of a product or service by investing in an "extension strategy". You could: EXCEPT___.

a)

increase your promotional spending

b)

introduce minor innovations - perhaps by adding extra features or updating the design

c)

ineffective market research

d)

seek new markets But ultimately this only delays a product or service's decline

15.

The role of an investor in a business is to provide high-quality products from a manufacturer at a good price to a distributor or retailer for resale.

a)

True

b)

False

16.

A supplier in a business is someone who acts as an intermediary between the manufacturer and retailer, ensuring that communication is forthcoming and stock is of sufficient quality.

a)

True

b)

False

17.

Suppliers have a hugely important role at every stage of the product lifecycle.

a)

True

b)

False

18.

An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns.

a)

True

b)

False

19.

Which of the following that may investors may adopt various marketing strategies?

a)

Passive and Active Investors

b)

Slow and fast investors

20.

Active investors tend to buy and hold the components of various market indexes, and may optimize their allocation weights to certain asset classes based on rules such as Modern Portfolio Theory's (MPT) mean-variance optimization.

a)

True

b)

False

21.

Active investors may be stock pickers who invest based on fundamental analysis of corporate financial statements and financial ratios.

a)

True

b)

False

22.

This occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors?

a)

credit

b)

loan

c)

debt financing

d)

investing

23.

It is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

a)

collateral

b)

credit

c)

investment

d)

bond

24.

It is the financial instrument that partakes some characteristics of debt and some characteristics of equity.

a)

debt financing

b)

consumer

c)

hybrid financing

d)

bond

25.

The following are the Types of Hybrid Financing EXCEPT____.

a)

Preference Capita

b)

Convertible Debentures

c)

Warrants

d)

Options

e)

Lifecycle