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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

Quantitative easing, the purchase of government or private securities by the central banks from investors, is an example of

Options:

A.

contractionary monetary policy.

B.

contractionary fiscal policy.

C.

expansionary fiscal policy.

D.

expansionary monetary policy.

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Question 2

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

Options:

A.

selling government bonds and lowering interest rates

B.

selling government bonds and raising interest rates

C.

buying government bonds and raising interest rates

D.

buying government bonds and lowering interest rates

Question 3

Which of the following statements defines a diseconomy of scale?

Options:

A.

A reduction in the unit average cost caused by increasing the scale of production in the long run.

B.

An increase in the unit average cost caused by increasing the scale of production in the long run

C.

An increase in the unit average cost caused by decreasing the scale of production in the long run.

D.

A reduction in the unit average cost caused by decreasing the scale of production in the long run.

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