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Fundamentals of Business Economics Questions and Answers

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Question 1

If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:

Options:

a shift in the aggregate demand curve to the right, a fall in output and employment and a rise in the price level

a shift in the aggregate demand curve to the left, a fall in output and employment and a fall in the price level

a shift in the aggregate demand curve to the left, a fall in output and employment and a rise in the price level

a shift in the aggregate demand curve to the right, a rise in output and employment and a rise in the price level

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Question 2

All of the following will tend to increase the number of firms in any one industry except which one?

Options:

Decreasing returns to scale

High transport costs

Low barriers to entry

Product differentiation

Question 3

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

Options:

Demographic statistics published in a census

The l{ addresses of computers in these areas

The level of youth unemployment as recorded by the government

The prominence of other brands focused on young people in the area

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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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CompTIA

Fortinet

Microsoft

Salesforce