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Q:

The price elasticity of supply measures how 

Answer:



Q:

Capital budgeting is primarily concerned with

A) planning future financing needs B) minimizing the cost of capital
C) capital formation in the economy D) evaluating investment alternatives
 
Answer & Explanation Answer: D) evaluating investment alternatives

Explanation:

Capital budgeting is the process by which a company or an industry determines whether projects such as investing in R&D, opening a new branch, replacing a machine are worth pursuing. A project is worth pursuing if it increases the value of the company. Capital budgeting also known as investment appraisal. 

 

It is primarily concerned with evaluating investment alternatives.

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Q:

Net working capital is defined as

Answer

Net working capital is defined as the aggregate of the current liabilities and current assets i.e, it measures the company's ability to pay off its current liabilities with in the current assets.

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Q:

What is the main motive behind dealer incentives?

A) encouraging the maximum number of sales of the manufacturers products B) to maintain a permanent deal
C) maintaining good dealer-manufacturer relationships D) ensuring that the customer gets the best possible deal
 
Answer & Explanation Answer: A) encouraging the maximum number of sales of the manufacturers products

Explanation:

The main motive behind dealer incentives is to give the products at some low price for the dealers who take the products in bulk and maintain good selling of these products.

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Q:

Performance goals are used to

A) measure productivity B) determine a worker's attitude
C) measure effectiveness, but not efficiency D) communicate nonverbally
 
Answer & Explanation Answer: A) measure productivity

Explanation:

Performance goals are used to measure productivity.

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Q:

What is the best definition of the term cottage industry?

A) goods are produced at home B) group of cottages that serves as factory
C) people of same colony work at same place D) people work at industries leaving their homes
 
Answer & Explanation Answer: A) goods are produced at home

Explanation:

Cottage industry is a manufacturing activity of people operated at home. The handcrafts which were sold in the society are examples of cottage industy products. It is a small scale industry in which the labor force is mostly family members or individuals.

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Q:

Other things equal an improvement in productivity will

A) shift the aggregate demand curve to the left B) shift the aggregate supply curve to the right
C) increase the equilibrium price level D) shift the aggregate supply curve to the left
 
Answer & Explanation Answer: B) shift the aggregate supply curve to the right

Explanation:
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Q:

A person should consume more of something when its marginal cost

A) Benefit exceeds its marginal cost B) Marginal cost exceeds its benefit
C) Benefit deceeds its marginal cost D) None of the above
 
Answer & Explanation Answer: A) Benefit exceeds its marginal cost

Explanation:
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Q:

The demand curve facing a perfectly competitive firm is

Answer

Demand curve is the relationship between price and quantity of product. In perfect competition, the demand curve for the product by a firm is perfectly elastic at maket price.

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