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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

A wireless phone manufacturer currently sells 2,000 units per quarter at a price of $400 The estimated price elasticity of demand is -2.5.

The manufacturer is considering an increase in the price to $440

What will this raise (+) or reduce (-) total revenue by? Give your answer in whole numbers.

Options:

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Question 2

Which ONE of the following is an External stakeholder in a state-owned energy provider?

Options:

A.

The industry regulator

B.

A firm selling equipment to the energy provider

C.

Customers of the energy provider

D.

The government

Question 3

A bottle of brandy costs £25 in Country X, including both unit tax and ad valorem tax. These taxes are applied throughout the production process.

Which of the following applies to this particular scenario? Select ALL that apply.

Options:

A.

The ad valorem tax acts as a sales tax

B.

Both taxes can be classed as multi-stage consumption taxes

C.

The unit tax is otherwise known as stamp duty

D.

The taxes levied on the brandy are charged in a similar way to sales tax in the United States

E.

The taxes levied on the brandy are proportional

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