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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

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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Question 2

The economy of Country V is initially in equilibrium at a level of national income and employment denoted by Y, at price level denoted by P If there is an increase in aggregate demand, indicate on the graph below the new equilibrium point in the economy.

Options:

Question 3

Which of the following is an example of fiscal policy?

Options:

A.

The central bank imposing controls on bank lending

B.

The removal of foreign exchange controls which restrict the transfer of currencies between countries

C.

The removal of regulations which restrict Sunday trading

D.

The creation of tax-exempt savings accounts to encourage savings

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