PQ 2 Flashcards
Explain the NVP (net present value)
Total PV of benefits - total PV cost
- net present value
- expresses the differences between the total present value of benefit & cost
What are the three categories of resources?
Land, Labour, Capital
What is the law of demand?
There is an inverse relationship between the price of a good & quantity of buyers wishing to purchase in a defined period of time
) What factors could cause a shift in demand curve? (5)
Tastes & preferences No. of buyers on the market Income Expectations of consumers Prices of related goods
Supposing a university enrolment drops by 10% because tuition raises by
5%, what is the price elasticity of demand?
Ed = (%∆in Q demanded) / (%∆in price) Ed = -10% / 5% = -2/1 = 2 Ed = 2
) What could be the direct effects of diseases in a pig fattening unit in terms of
resources &/or of products?
Affects livestock resource transformation process
Results in extra resource use
Fewer animal products than before
) What are the measurable effects of diseases on animal productivity?
Premature death
Changed value of animals & products from slaughthered animals
Reduced live weight gain
Reduced yield & quality of products from the animals
Decreased capacity for work
Altered FCE
Explained fix-, variable- & marginal cost
Fixed cost – cost that don’t vary as output varies, & must be paid even if output is zero
Variable cost – costs that are zero if output is zero, varies if output varies
Marginal cost – change in total cost when one unit of output is produced
Which of the following is a direct effect of animal disease?
Reduced milk yield
Reduced fertility
Supplementary services:
Pet food, grooming
Which of the following marketing communication tool is a PR activity?
Scientific (article)
Which of the following could be a source of personal referrals?
All of them (clients, buisness contacts, staff networks)
Which of the following is cross marketing?
Selling feline pet food to existing dog owners.
Selling a canine pet food to existing cat owner.
Which of the following is a non-durable good?
desinfectants, badnages
Which of the following is NOT a part of the financial plan?
marketing plan, enterprise budget
