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Fundamentals of Business Economics Questions and Answers

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Question 1

Inflation is undesirable for all of the following reasons except which one?

Options:

Inflation decreases the international competitiveness of the business sector.

Inflation distorts the price system and the process of resource allocation.

Inflation shifts wealth from debtors to creditors in an arbitrary fashion.

Inflation makes business forecasting and planning more difficult.

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Question 2

The following cash flows are for a capital project where the required rate of return is 8 percent

Calculate the NPV for the project. Give your answer to the nearest whole number

Options:

Question 3

If the price elasticity of supply for a good over a certain price range is 0.8, the increase in the quantity supplied of that good, following a 10% increase in its price, will be

Options:

0.8%

8.0%

18%

80%

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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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