World Prices Quiz
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Price is the value of a product offering that can be created through the different marketing mix elements, such as through product, distribution and communication decisions. Therefore, global pricing decisions are related to other marketing mix variables. Know more about pricing in this quiz.
- 1.
The major role in price setting of finished goods belongs to
- A.
Stock exchange
- B.
Major exporters
- C.
Major importers
- D.
Unions of exporters
Correct Answer
C. Major importersExplanation
Major importers have a significant influence on the price setting of finished goods. As they are responsible for purchasing goods from manufacturers or suppliers in large quantities, they have the power to negotiate prices and determine the final price at which the goods will be sold to retailers or consumers. Their buying power and market dominance allow them to dictate prices and influence the overall pricing strategy in the market.Rate this question:
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- 2.
The basis for world price is
- A.
Law of the value of commodities
- B.
Fluctuations in supply and demand
- C.
State regulation
- D.
Monopoly price setting mechanism
Correct Answer
A. Law of the value of commoditiesExplanation
The basis for world price is the Law of the value of commodities. This law states that the value of a commodity is determined by the amount of socially necessary labor time required to produce it. In other words, the more labor that is required to produce a commodity, the higher its value and price will be. This law applies to all commodities, including those traded on the global market. Therefore, the world price of a commodity is determined by the underlying value of that commodity, which is governed by the Law of the value of commodities.Rate this question:
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- 3.
International value is defined by
- A.
Socially necessary capital for the production of goods
- B.
Actual labor costs for the production of goods
- C.
Socially necessary labor costs for the production of goods
- D.
State regulated labor costs for the production of goods
Correct Answer
C. Socially necessary labor costs for the production of goodsExplanation
International value is determined by socially necessary labor costs for the production of goods. This means that the value of a product in the international market is influenced by the average amount of labor time required to produce it, taking into account the prevailing social and technological conditions. It does not depend on the actual labor costs incurred by a specific producer or the state-regulated labor costs. Instead, it considers the broader social context and the average labor costs required for production.Rate this question:
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- 4.
Select features of world prices
- A.
Price of the largest transactions
- B.
Average price of all transactions
- C.
Price of large regular transactions
- D.
Price of large regular unconnected transactions
Correct Answer
D. Price of large regular unconnected transactionsExplanation
This answer refers to the price of large regular unconnected transactions as one of the features of world prices. This suggests that when considering world prices, the focus is on the prices of significant transactions that occur regularly but are not connected to each other. These transactions may involve large quantities or high values, and they are considered as important indicators of price trends in the global market.Rate this question:
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- 5.
Select feature of world price
- A.
Transactions must be set in USD
- B.
Currency is irrelevant
- C.
Transaction must be set in freely usable currency
- D.
Transaction must be set in IMF reserve currency
Correct Answer
C. Transaction must be set in freely usable currencyExplanation
The feature of world price that must be selected is that the transaction must be set in a freely usable currency. This means that the currency used for the transaction should be widely accepted and easily convertible into other currencies. It should not be restricted or controlled by any government or organization. This ensures that the transaction can be conducted smoothly and without any barriers related to currency exchange or restrictions.Rate this question:
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- 6.
What contract became available for international investors first?
- A.
Iron ore futures
- B.
Oil futures
- C.
RMB futures
- D.
PTA futures
Correct Answer
C. RMB futuresExplanation
RMB futures became available for international investors first. RMB stands for Renminbi, which is the official currency of China. The introduction of RMB futures allowed international investors to trade and speculate on the future value of the Chinese currency. This development was significant as it provided an opportunity for investors to diversify their portfolios and gain exposure to the Chinese financial market. Additionally, the availability of RMB futures also facilitated international trade and investment in China, further integrating the country into the global economy.Rate this question:
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- 7.
Is there a standard oil price?
- A.
Yes
- B.
No
Correct Answer
B. NoExplanation
The question asks if there is a standard oil price. The correct answer is "No" because oil prices are determined by various factors such as supply and demand, geopolitical events, and market speculation. There is no fixed or standard price for oil as it fluctuates constantly.Rate this question:
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- 8.
More than half of consumers all around the world prioritize price as the deciding factor for their purchase.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The given statement suggests that a majority of consumers prioritize price when making purchasing decisions. This means that more than 50% of consumers consider the cost of a product or service as the most important factor in their buying choices. It implies that price plays a significant role in influencing consumer behavior and that businesses should take this into account when setting prices and marketing their products.Rate this question:
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- 9.
Only around a quarter of businesses consider competition or market pricing before setting their price.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Many businesses do not take into account competition or market pricing when setting their prices. This suggests that a majority of businesses may not be fully aware of the competitive landscape or may not prioritize market research in their pricing strategies. This lack of consideration for competition and market pricing could potentially lead to setting prices that are not competitive or that do not accurately reflect the value of the product or service, which could impact the business's profitability and market position.Rate this question:
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- 10.
The price of petroleum in the international market fell to a negative state ( below 0) in 2020.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In 2020, the price of petroleum in the international market fell to a negative state (below 0). This means that sellers were paying buyers to take the petroleum off their hands, indicating a significant oversupply and lack of demand. This unprecedented situation occurred due to a combination of factors, including a decrease in global oil consumption due to the COVID-19 pandemic and a price war between major oil-producing countries. As a result, the statement is true.Rate this question:
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Current Version
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Mar 17, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 23, 2021Quiz Created by
Catherine Halcomb
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