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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

In a market economy the market mechanism can achieve all the following except one. Which is the exception?

Options:

A.

Signaling changes in consumer tastes

B.

Causing supply to respond to changes in demand

C.

Eliminating excess supply and demand

D.

Ensuring a socially fair distribution of goods and services

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Question 2

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

Question 3

Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?

Options:

A.

Devaluate the exchange rate in order to increase exports.

B.

Increase the money supply in order to stimulate domestic consumption.

C.

Appreciate the exchange rate in order to reduce imports.

D.

Reduce the interest rate in order to stimulate investment.

E.

Introduce tariffs on imported goods in order to favour domestic producers.

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