Explore topic-wise MCQs in Business Economics.

This section includes 6 Mcqs, each offering curated multiple-choice questions to sharpen your Business Economics knowledge and support exam preparation. Choose a topic below to get started.

1.

In pricing one new emerging model is Outcome Based Pricing Model. When pricing is done for the IT industry., which of these will represent Outcome Based Pricing?

A. Availability of resources for testing
B. The number of billable hours
C. The number of persons deployed for the project
D. Increase in profitability for the client
Answer» E.
Discussion
2.

A firm that produces highly substitute goods can adopt which one of the following pricing strategies ?

A. Transfer pricing
B. Going Rate pricing
C. Product bundling
D. Full cost pricing
Answer» C. Product bundling
Discussion
3.

A reduction from the list price that is offered by a seller to buyers in payment for marketing functions the buyers will perform is known as :

A. Trade Discount
B. Functional Discount
C. Cash Discount
D. Both Trade and Functional Discount
Answer» E.
Discussion
4.

Cost plus pricing is considered appropriate for which combination of the following?(i) Product Tailoring(ii) Public Utility Pricing(iii) Refusal Pricing(iv) Monopoly PricingChoose the correct answer from the code given below:

A. Only (i) and (ii)
B. Only (i), (ii) and (iii)
C. Only (ii), (iii and (iv)
D. Only (iii) and (iv)
Answer» C. Only (ii), (iii and (iv)
Discussion
5.

In penetration pricing a business firm seeks to access deeper market penetration by keeping prices ____________

A. Higher
B. Competitive
C. Low
D. Flexible
Answer» D. Flexible
Discussion
6.

Arrange the following steps in logical sequence of operation of the Arbitrage Pricing Theory (APT). (A) Estimate the Factor Sensitivities(B) Estimate the Risk Premium for Factor(s)(C) Identify the Macroeconomic FactorsChoose the correct answer from the options given below:

A. (A), (B), (C)
B. (B), (A), (C)
C. (C), (B), (A)
D. (C), (A), (B)
Answer» E.
Discussion