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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

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Question 1

The stock market fulfils all of the following functions except which one?

Options:

A.

A market for government bonds.

B.

A market for foreign exchange.

C.

A market for company shares.

D.

A market for short term loans.

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Question 2

Which ONE of the following would make the market supply of a product price elastic?

Options:

A.

Suppliers are unable to store unsold product

B.

Firms can join the industry easily

C.

Demand is price elastic

D.

There is a shortage of resources to make the product

Question 3

industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production

The statement above is most closely describing an example of which of the following?

Options:

A.

External diseconomy of scale.

B.

Internal diseconomy of scale

C.

Internal economy of scale

D.

External economy of scale

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