Business Data Management Quiz 1: 16 October 2022 (September 2022 term)

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

Statement 1: She prefers bread over ice cream, and sandwiches over bread.
Statement 2: She derives 100 utility points from eating a slice of bread.
Which of the two utility theories, viz., the Cardinal Utility Theory (CUT) and the Ordinal Utility Theory (OUT), does each of these statements belong?

The axes (x and y) of the indifference curve represent:

“She was hungry and wanted a Dosa. The app on her phone gave her a better price for a plate of Idlis; so she chose Idli over Dosa. She also wanted to buy a printer. However, the cartridge was very expensive, and thus she had to drop the idea of getting a printer.”
The first purchase decision (Dosa/Idli) is a classic example of _______ goods and the second (printer/cartridge) is an example of _________ goods.

Assume person X consumes only 2 goods food and books in a month. Also assume that both food and books are normal goods for X. A decrease in the price of food will lead to X’s consumption of books to:

“The amount of at least one of the inputs used remain constant” is an assumption of

Ram’s toy shop on an e-commerce website was having a dry spell despite him running a price promotion. To boost the sales, he set out a banner on the landing page of the shop that read “Only few hours left for the sale to end!” while he would actually reset the banner every couple of hours. What pricing strategy is Ram is using?

See the Demand curves (D1 and D2) in the figure below. Choose all the correct statements pertaining to these curves.

Consider this hypothetical example: Coca-Cola decreased the price of 300 ml Diet Coke can from INR 40 per can to INR 38. This resulted in consumers buying 7000 cans a week. Before the price drop, consumers bought only 5000 cans a week. In the same week, Pepsi reduced the price of its Black cans by INR 2, which increased the sales of Pepsi Black by a whopping 25%! To add to all the complexity, in the same week, the price of petrol increased by 3%, and that of diesel by 2.5%, resulting in a net decrease in fuel usage by 0.02%. Given all this data, calculate the price elasticity of demand of Diet Coke (round the answer to 2 decimal places).

Match the following:

A firm has total assets worth INR 45000000/- of which 10000000/- is illiquid. Its total current liabilities sum up to INR 60000000/-.
Based on the above data, answer the given subquestions.

What is the value of quick ratio (acid-test) (round the answer to 2 decimal places)?

A firm has total assets worth INR 45000000/- of which 10000000/- is illiquid. Its total current liabilities sum up to INR 60000000/-.
Based on the above data, answer the given subquestions.

Current ratio for this firm (round the answer to 2 decimal places)?

A firm has INR 500000/- as accounts receivable (debtors), while its annual sales turnover is INR 6500000/-. Calculate the firm’s debtor days (round the answer to 2 decimal places).