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Fundamentals of Business Economics Questions and Answers

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Question 1

The following table shows the profits of a business and an index of the general price level for 4 years

How does the level of real (inflation adjusted) profits in 20X4 compare to those of 20X1 ?

Options:

+ $l8m

+ $12.5m

+ S3m

+ $0-6m

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Question 2

A railway franchise in north-eastern Messu Potami has recently changed hands, and is now being operated by the company IstClass. However, IstClass already operate the railway franchise in northwestern Messu

Potami.

Which of the following courses of action would be most appropriate for the government of Messu Potami to take?

Select ALL that apply.

Options:

Establish a regulatory body to prevent a regional monopoly

Rerun the franchise bidding process if it found that IstClass are imposing additional price rises due to the regional monopoly

Allow the regional monopoly to exist, increasing fare prices for passengers on trains in both north-western and north-eastern Messu Potami

Impose a uniform sales tax on all railway tickets which would equalise prices across the country

Immediately nationalise the railway network, ending all private franchises and thus any regional monopolies

Question 3

A clothes retailer has estimated a linear trend equation including trend, seasonal and cyclical components to forecast its sales for the next four quarters Which of the following factors would generate actual sales figures that are likely to differ markedly from the forecast?

Options:

A drop in sales due to emergency roadwork blocking access to the store

A drop in sales due to the ongoing economic recession.

An increase in sales due to the increasing popularity of their brand.

An increase in sales before a major religious festival

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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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