6. Which of the following is included under cost plus pricing?
i] Implicit cost
ii] Actual costs
iii] A small percentage of profit
iv] Opportunity cost
a. Only i and ii
b. Only ii and iii
c. All ii, iii and iv
d. All the above
Answer: c. All ii, iii and iv
7. Why is it difficult to follow the "Going rate policy" in the long run?
a. Correct prices are often a secret
b. Strong parties start quoting less prices to drive out the competition
c. Establishig the going rate is difficult
d. The costs are beyond the management's control
Answer: d. The costs are beyond the management's control
8. As per the Government, what was the reason for inflationary pressure during the Nineties?
a. Low industrial output
b. Higher fiscal deficit
c. Decrease in aggregate supply
d. Higher GDP
Answer: c. Decrease in aggregate supply
9. Match the Following
1] Evolutionary Method
i] Ignores that the new product could be different from the existing one
2] Sample Survey Method
ii] Assumes the sample to represent population
3] Substitution Method
iii] Manufacturers of existing product react in different ways
4] Growth Pattern Method
iv] Time consuming
v] Scientific
a. 1-iii, 2-vi, 3-iv, 4-ii
b. 1-i, 2-ii, 3-iii, 4-iv
c. 1-i, 2-ii, 3-iii, 4-iv
d. 1-i, 2-vi, 3-iv, 4-iii
Answer: b. 1-i, 2-ii, 3-iii, 4-iv
10. _______ developed the innovation theory of profit.
a. Hawley
b. Joseph Schumpeter
c. Joel Dean
d. J B Clark
