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May 2023 term · Business Data Management · BSMS2001

Business Data Management Quiz 1: 16 July 2023 (May 2023 term)

The IIT Madras BS Business Data Management (BDM) Quiz 1 paper sat on 16 Jul 2023, in the May 2023 term: 10 questions for 16 marks in 120 minutes. Every question is below with its answer. Take it as a timed mock test to be marked, or read it through first.

Questions
10
Marks
16
Duration
120 min
MCQ
10
Take as mock testPractise with answers

Updated

Official paper: IIT M DIPLOMA AN2 EXAM QPD2 16 JULY 2023 · No negative marking.

Question 1

+2 marksOne correct option

Match the following:

i. Total utilitya. Satisfaction gained from consuming one additional unit of good or service
ii. Marginal utilityb. Aggregate satisfaction gained from consuming a specific quantity of good or service.
iii. Average utilityc. Satisfaction gained from per unit of good or service consumed.
----d. Satisfaction gained from consuming one additional unit of good or service after the satisfaction levels match average utility threshold.
  1. A

    i-b, ii-d, iii-a

  2. B

    i-d, ii-c, iii-b

  3. C

    i-b, ii-a, iii-d

  4. D

    i-c, ii-a, iii-d

  5. E

    i-b, ii-a, iii-c

  6. F

    i-c, ii-d, iii-a

Show answer

Correct answer

  • E

    i-b, ii-a, iii-c

Question 1 on its own page

Question 2

+2 marksOne correct option

Theoretically, a customer will keep buying an item as long as ______ of the item is ______ the per unit price of the item.

  1. A

    total utility; lesser than

  2. B

    variable cost; greater than

  3. C

    marginal utility; greater than

  4. D

    variable cost; lesser than

  5. E

    marginal utility; lesser than

Show answer

Correct answer

  • C

    marginal utility; greater than

Question 2 on its own page

Question 3

+1 markOne correct option

Which of the following is the single best differentiator between luxury and normal goods?

  1. A

    Supply

  2. B

    Demand

  3. C

    Production costs

  4. D

    Capital expense

  5. E

    Price elasticity of demand

Show answer

Correct answer

  • E

    Price elasticity of demand

Question 3 on its own page

Question 4

+1 markOne correct option

A soap manufacturing unit produces 5000 boxes of soap at a total cost of Rs. 250,000. The variable cost per box of soap is Rs. 20. What is the average cost per box of soap?

  1. A

    Rs. 250

  2. B

    Rs. 50

  3. C

    Rs. 12500

  4. D

    Rs. 5

Show answer

Correct answer

  • B

    Rs. 50

Question 4 on its own page

Question 5

+1 markOne correct option

When a consumer reaches the point of satiation or overconsumption, the customer’s:

  1. A

    total utility of the good is zero.

  2. B

    total utility of the good is at its maximum.

  3. C

    marginal utility becomes zero

  4. D

    total utility of the good is greater than twice the price of the good

Show answer

Correct answer

  • C

    marginal utility becomes zero

Question 5 on its own page

Question 6

+1 markOne correct option

_____ is a measure of a company's liquidity and short-term solvency.

  1. A

    current ratio

  2. B

    quick ratio

  3. C

    cash ratio

  4. D

    inventory ratio

Show answer

Correct answer

  • A

    current ratio

Question 6 on its own page

Question 7

+1 markOne correct option

Total utility is maximum when:

  1. A

    marginal utility is negative

  2. B

    marginal utility is zero

  3. C

    marginal utility is increasing

  4. D

    marginal utility is decreasing

Show answer

Correct answer

  • B

    marginal utility is zero

Question 7 on its own page

Question 8

+1 markOne correct option

Total utility _________ at (a / an) _________ rate when marginal utility is decreasing but positive.

  1. A

    decreases, increasing

  2. B

    decreases, decreasing

  3. C

    increases, increasing

  4. D

    increases, decreasing

Show answer

Correct answer

  • D

    increases, decreasing

Question 8 on its own pageAlso asked in Quiz 1 16 Oct 2022

Question 9

+3 marksOne correct option

A Company has the following information for the fiscal year ending December 31, 2022: • Current Assets: $800,000
• Current Liabilities: $400,000
• Inventory: $200,000
Calculate the current ratio for the company.

  1. A

    1.50

  2. B

    2

  3. C

    3

  4. D

    2.50

Show answer

Correct answer

  • D

    2.50

Question 9 on its own page

Question 10

+3 marksOne correct option

Quick ratio of a company with current liabilities of Rs. 1 crore is 0.6. If the company liquidates some long-term assets and receives 25 lakhs in cash, then its quick ratio will become _________.

  1. A

    0.50

  2. B

    0.85

  3. C

    0.35

  4. D

    0.55

Show answer

Correct answer

  • B

    0.85

Question 10 on its own page