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BA1 Exam Dumps - Fundamentals of Business Economics

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Question # 9

The following table reports are for five hotels belonging to the same hotel chain, the rank in terms of sales performance (with 1 - best average score obtained in customer reviews, and the rank in terms of average score from customer reviews (with 1 = best average ..

Calculate the Spearman's rank correlation coefficient to one decimal place:

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Question # 10

The following cash flows are for a capital project where the required rate of return is 8 percent

Calculate the NPV for the project. Give your answer to the nearest whole number

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Question # 11

Country A's tax system is one where every citizen pays tax on earned income over S12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise.

Which of the following describes the nature of the tax paid by individuals in Country A?

A.

Progressive

B.

Regressive

C.

Retentive

D.

Proportional

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Question # 12

A company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles

What is the price elasticity of demand of the nail varnish?

A.

-2.0

B.

+2.0

C.

-0.5

D.

+0.5

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Question # 13

A manufacturing company is considering a new investment project.

Which TWO of the following would reduce the net present value of the investment to the business?

A.

A rise in the scrap value of the project at the end of its life.

B.

A reduction in the expected level of future sales.

C.

A rise in interest rates.

D.

A fall in the initial capital cost of the project

E.

An expected fall in the future price of components used by the business

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Question # 14

Which of the following statements defines a diseconomy of scale?

A.

A reduction in the unit average cost caused by increasing the scale of production in the long run.

B.

An increase in the unit average cost caused by increasing the scale of production in the long run

C.

An increase in the unit average cost caused by decreasing the scale of production in the long run.

D.

A reduction in the unit average cost caused by decreasing the scale of production in the long run.

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Question # 15

Which of the following businesses is least likely to benefit from an appreciation of Country A's currency against Country B's currency?

A.

A fashion producer in Country A exporting garments to Country

B.

A food company in Country B exporting condiments to Country A

C.

An automobile producer in Country A importing car parts from suppliers in Country B

D.

A pharmaceutical company in Country A that pays a license to a patent holder in Country B

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Question # 16

The following ogive shows the cumulative frequency of the ages of a small sample of entrepreneurs.

Which THREE of the following statements are true?

A.

Four entrepreneurs were aged between 30 and 40

B.

The sample included 10 entrepreneurs

C.

The sample did not include any entrepreneurs older than 65.

D.

Two entrepreneurs were aged between 40 and 50

E.

The sample did not include any entrepreneurs younger than 20

F.

Most entrepreneurs were younger than 40.

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