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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

Which of the following describes a 'spot rate' in foreign currency dealing?

Options:

A.

It is a short term rate that may change in the immediate future

B.

It is the price for a currency that is to be delivered immediately

C.

It is the exchange rate minus any commissions or transactions charges

D.

It is the exchange rate minus the inflation rate

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Question 2

A wireless phone manufacturer currently sells 2,000 units per quarter at a price of $400 The estimated price elasticity of demand is -2.5.

The manufacturer is considering an increase in the price to $440

What will this raise (+) or reduce (-) total revenue by? Give your answer in whole numbers.

Options:

Question 3

If a firm reduces the price of its good from $10 to $8 and, as a result, sales rise from 20,000 per month to 22,000 per month, the price elasticity of demand for its good must be

Options:

A.

-1

B.

-0.5

C.

+0.5

D.

+1

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