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Fundamentals of Business Economics Questions and Answers

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Question 1

A market is in equilibrium. If the government imposes a minimum price above the equilibrium price, there will be:

Options:

an extension in demand, a contraction in supply and a market shortage

a decrease in demand, an extension in supply and a market surplus

a contraction in demand, an increase in supply and a market surplus

a contraction in demand, an extension in supply and market surplus

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Question 2

The equilibrium level of national income in an economy is the level of income at which

Options:

Full employment occurs

There is zero inflation

Total planned spending equals the supply of output available

The government's budget and the balance of payments are both exactly balanced

Question 3

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

Options:

A market for government bonds.

A market for foreign exchange.

A market for company shares.

A market for short term loans.

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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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