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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

industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production

The statement above is most closely describing an example of which of the following?

Options:

A.

External diseconomy of scale.

B.

Internal diseconomy of scale

C.

Internal economy of scale

D.

External economy of scale

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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

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:

A.

+ $l8m

B.

+ $12.5m

C.

+ S3m

D.

+ $0-6m

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