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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

Question 1

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:

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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:

A.

Establish a regulatory body to prevent a regional monopoly

B.

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

C.

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

D.

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

E.

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

Question 3

A bottle of brandy costs £25 in Country X, including both unit tax and ad valorem tax. These taxes are applied throughout the production process.

Which of the following applies to this particular scenario? Select ALL that apply.

Options:

A.

The ad valorem tax acts as a sales tax

B.

Both taxes can be classed as multi-stage consumption taxes

C.

The unit tax is otherwise known as stamp duty

D.

The taxes levied on the brandy are charged in a similar way to sales tax in the United States

E.

The taxes levied on the brandy are proportional