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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 country's currency depreciates (falls) on the foreign exchange market. All of the following would be the effects of this on businesses within the country except which one?

Options:

A.

Businesses would lose income from each export as their export prices would fall.

B.

Businesses would face higher costs as prices of imported goods rose.

C.

Businesses would more easily compete with imported substitutes for their products.

D.

Businesses could keep the foreign exchange price of their exports constant and expand their profit margins.

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Question 2

An example of forward vertical integration is

Options:

A.

The merger between Mercedes and Chrysler in the car industry

B.

A car manufacturer taking over an engine factory

C.

The Ford car company producing refrigerators

D.

A car manufacturer investing in a chain of car showrooms and dealers

Question 3

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

Options:

A.

Full employment occurs

B.

There is zero inflation

C.

Total planned spending equals the supply of output available

D.

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

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