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Fundamentals of Business Economics Questions and Answers

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Question 1

Identify which of the following features does not distinguish redeemable debt apart from equity:

Options:

It has a face value which shows its value at redemption

It will pay a regular set sum of interest

It will have a maturity date when it will mature

It will never be traded on an investment market

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Question 2

All of the following will tend to increase the number of firms in any one industry except which one?

Options:

Decreasing returns to scale

High transport costs

Low barriers to entry

Product differentiation

Question 3

A government may try to reduce a balance of payments deficit on current account by using either expenditure-reducing policies or expenditure-switching policies.

Which of the following is an expenditure-reducing policy?

Options:

Devaluation of the exchange rate

Imposing tariffs and quotas on imports

Export subsidies

Higher income tax rates

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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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