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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 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

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Question 2

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

Question 3

A business has a short-term problem with its payments exceeding its receipts. Which TWO of the following would be appropriate for meeting this financial shortfall?

Options:

A.

A bank overdraft

B.

A bill of exchange

C.

A mortgage

D.

Issuing shares

E.

A leasing arrangement

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