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Fundamentals of Business Economics Questions and Answers

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Question 1

A railway franchise in north-eastern Messu Potami has recently changed hands, and is now being operated by the company IstClass. However, IstClass already operate the railway franchise in northwestern Messu

Potami.

Which of the following courses of action would be most appropriate for the government of Messu Potami to take?

Select ALL that apply.

Options:

Establish a regulatory body to prevent a regional monopoly

Rerun the franchise bidding process if it found that IstClass are imposing additional price rises due to the regional monopoly

Allow the regional monopoly to exist, increasing fare prices for passengers on trains in both north-western and north-eastern Messu Potami

Impose a uniform sales tax on all railway tickets which would equalise prices across the country

Immediately nationalise the railway network, ending all private franchises and thus any regional monopolies

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Question 2

The central bank can increase liquidity in the banking system, by:

Options:

selling government bonds and lowering interest rates

selling government bonds and raising interest rates

buying government bonds and raising interest rates

buying government bonds and lowering interest rates

Question 3

Which of the following are external stakeholders for an organization?

i. Shareholders

ii. Customers

iii. Government

iv. Trade Unions

v. Pressure groups

vi. Employees

Options:

(i), (ii) and (iii) only

(ii), (iii) and (iv) only

(iii), (iv) and (v) only

(i), (v) and (vi) only

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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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