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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

Inflation is undesirable for all of the following reasons except which one?

Options:

A.

Inflation decreases the international competitiveness of the business sector.

B.

Inflation distorts the price system and the process of resource allocation.

C.

Inflation shifts wealth from debtors to creditors in an arbitrary fashion.

D.

Inflation makes business forecasting and planning more difficult.

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Question 2

If the price elasticity of supply for a good over a certain price range is 0.8, the increase in the quantity supplied of that good, following a 10% increase in its price, will be

Options:

A.

0.8%

B.

8.0%

C.

18%

D.

80%

Question 3

Which THREE of the following businesses are more likely to fare belter during a recession?

Options:

A.

A construction company specialising in road infrastructure

B.

A producer of rice, a staple good

C.

A producer of automobiles, a durable good.

D.

A producer of security equipment, a counter-cyclical good

E.

A retailer specialising in fashion, a cyclical good.

F.

A construction company specialising in private residential accommodation

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