Online BA1 Questions Video

Fundamentals of Business Economics Questions and Answers

Question 53

Which of the following best defines “aggregate supply”?

The stock of output available for sale in an economy

The full employment level of output of the economy

The flow of goods and services produced by an economy during the year

The level of prices at which output can be sold in an economy

Question 54

Which ONE of the following best explains the statement 'In not for profit organizations money is a constraint and not a goal'?

Money be ignored because reaching the goals of the organization is all that matters

There is no need for the organization to be efficient

There is a trade off between financial and non-financial goals

Money limits how far the organization can achieve its goals

Question 55

Which ONE of the following is regarded as a general characteristic of an organization?

Controlled performance of its activities

Social goals towards society

Collective goals towards society

Social arrangement of people

Question 56

When faced with a recession, the appropriate combination of policies for a government in order to generate a recovery is

Tax cuts, reduced public expenditure and lower interest rates.

Monetary expansion, increases in public expenditure and an appreciation of the exchange rate.

Reduction of the fiscal deficit and increased money supply.

Tax cuts, monetary expansion and a depreciation of the exchange rate.