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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

Question 1

Which THREE of the following businesses are more likely to fare belter during a recession?

Options:

A.

A construction company specialising in road infrastructure

B.

A producer of rice, a staple good

C.

A producer of automobiles, a durable good.

D.

A producer of security equipment, a counter-cyclical good

E.

A retailer specialising in fashion, a cyclical good.

F.

A construction company specialising in private residential accommodation

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Question 2

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

Question 3

When faced with a recession, the appropriate combination of policies for a government in order to generate a recovery is

Options:

A.

Tax cuts, reduced public expenditure and lower interest rates.

B.

Monetary expansion, increases in public expenditure and an appreciation of the exchange rate.

C.

Reduction of the fiscal deficit and increased money supply.

D.

Tax cuts, monetary expansion and a depreciation of the exchange rate.