WorksheetsWeek 9 Lesson for Applied Economics
Total questions: 25
Worksheet time: 13mins
It is the study of how people decide to spend their money based on their individual preferences and budget constraints.
consumer theory
supplier theory
Investor theory
consumer sovereignty
Which of the following are NOT the KEY TAKEAWAYS of Consumer Theory?
Consumer theory is the study of how people decide to spend their money based on their individual preferences and budget constraints.
Building a better understanding of individuals' tastes and incomes is important because these factors impact the shape of the overall economy.
Consumer theory is not flawless, though, as it based on a number of assumptions about human behavior.
Use different financial instruments to earn a rate of return to accomplish financial goals and objectives.
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.
nonsatiation
decreased marginal utility
increased marginal utility
utility maximization
People are seldom satisfied with one trip to the shops and always want to consume more
nonsatiation
decreased marginal utility
increased marginal utility
utility maximization
Decreasing marginal utility is the consumers lose satisfaction in a product the more they consume it
True
False
It is the idea that it is consumers who influence production decisions.
consumer theory
supplier theory
investor theory
consumer sovereignty
Consumer sovereignty has certain assumptions regarding consumer behavior EXCEPT____.
Consumers are rational.
Preferences exist over various goods and services in the market, using the concept of marginal utilities.
Consumer are subject to budget constraints.
Prices exist due to unlimited wants and the scarcity of resources.
Manage the lifecycle
If there is a marked down or a sale, consumers will respond by buying more goods and services.
Consumers are rational.
Preferences exist over various goods and services in the market, using the concept of marginal utilities.
Consumer are subject to budget constraints.
Prices exist due to unlimited wants and the scarcity of resources.
It is the power to satisfy but is a subjective notion and a specific product will vary from one person to another.
Utility
Needs
Preferences
Wants
It is the extra utility that a consumer derives from an additional unit of a good or service.
marginal utility
increased utility
total utility
decrease utility
It is usually defined as a quantifiable summation of satisfaction or happiness obtained from consuming multiple units of a particular good or services.
marginal utility
increased utility
total utility
decrease utility
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.
Consumers are rational.
Preferences exist over various goods and services in the market, using the concept of marginal utilities.
Consumer are subject to budget constraints.
Prices exist due to unlimited wants and the scarcity of resources.
There are five key stages in the lifecycle of any product or service EXCEPT___.
development and introduction
growth and maturiy
decline
lifecycle management
You can extend the lifecycle of a product or service by investing in an "extension strategy". You could: EXCEPT___.
increase your promotional spending
introduce minor innovations - perhaps by adding extra features or updating the design
ineffective market research
seek new markets But ultimately this only delays a product or service's decline
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.
True
False
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.
True
False
Suppliers have a hugely important role at every stage of the product lifecycle.
True
False
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.
True
False
Which of the following that may investors may adopt various marketing strategies?
Passive and Active Investors
Slow and fast investors
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.
True
False
Active investors may be stock pickers who invest based on fundamental analysis of corporate financial statements and financial ratios.
True
False
This occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors?
credit
loan
debt financing
investing
It is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
collateral
credit
investment
bond
It is the financial instrument that partakes some characteristics of debt and some characteristics of equity.
debt financing
consumer
hybrid financing
bond
The following are the Types of Hybrid Financing EXCEPT____.
Preference Capita
Convertible Debentures
Warrants
Options
Lifecycle
