BA1 Exam Dumps - Fundamentals of Business Economics
All of the following are typical features of the downswing phase of the trade cycle except one. Which ONE is the exception?
If a country were to join a currency union (for example, the European single currency, the Euro), its businesses would experience all of the following except which one?
Following a 10% reduction in the value of its currency, the volume of imports into the country falls by 10%, whilst the volume of exports rises by 15%.
Which of the following effects will occur?
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:
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
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 company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles
What is the price elasticity of demand of the nail varnish?
A manufacturing company is considering a new investment project.
Which TWO of the following would reduce the net present value of the investment to the business?
Which of the following businesses is least likely to benefit from an appreciation of Country A's currency against Country B's currency?
The following ogive shows the cumulative frequency of the ages of a small sample of entrepreneurs.
Which THREE of the following statements are true?
Based on historical time series data, a chemicals company uses sales ($million) as the y variable and time (year) as the x variable and equation.
y = - 3935 47 + 2 02x
Using the equation, what is the company's predicted sales for the year 2020? Give your answer to the nearest million.
A binding financial contract that can be used to hedge exchange rate risks by fixing the rate of exchange at a fixed date, and can be traded in financial markets, is known as:
Based on a trade balance between Country A and Country B over a ten year period, the underlying trend of the trade balance is represent equation
-114.027 -1.47x
where x is the time period expressed in years.
Assuming an additive forecasting model, with a seasonal factor of 82 6, then the forecast for year 2016, in whole units is:
If the demand curve for good A is negatively sloped, a fall in the price of a substitute good B results in
Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?
Which of the following statements most accurately describes the role of an agent as defined in principal-agent theory?
A market for a normal good is in equilibrium. What will happen in this market if there was an increase in consumer incomes?
All of the following would provide justification for government competition authorities to investigate the businesses involved except one. Which ONE is the exception?
If the production of a good is characterized by significant external social costs, resource allocation can be improved by the government:
The demand for salt is generally regarded as price inelastic. Which ONE of the following factors would not contribute to making demand for salt price inelastic?
A rise in the demand for petrol by motorists is likely to follow a rise in the price of:
In a supply and demand diagram, other things remaining the same, an increase in production costs will normally shift:
The government may wish to control horizontal mergers between firms because
If a firm wishes to maximize market share without incurring a loss, it should set its price where
Which of the following events might cause the demand curve for chicken meat to shift to the right?
If the government imposed a legal minimum wage that was above the market equilibrium wage, the resulting unemployment would be the greatest when:
The management of Pennyfarthing's Toy Bazaar requires financial advice, but is unsure of which type of bank to approach to acquire this. The company receives a profit of £1,000,000 a year, and currently operates in
Europe and North America.
Which of the following reasons explains why Pennyfarthings Toy Bazaar should use a wholesale bank?
Which of the following are reasons why the principal-agent problem is so critical for businesses? Select ALL that apply.
Vencia has recently been faced with international condemnation due to its tendency to engage in 'dirty floating'. This is combined with high interest rates as well as underdeveloped industries.
What would likely be the result of these conditions on Vencia's trade?
Assuming Country A has a floating exchange rate which of the following would lead to a fall of the exchange rate for Country A and which rise m the exchange rate for Country A.
Complete the table below by matching the relevant label on the exchange rate of the scenarios listed.
In a given economy of every $1 of additional income:
$0.68 is spent on consumption of domestically produced goods
$0.13 is spent on imported goods
$0.15 is taxed by government
What is the value of the multiplier in this economy?
Country X is a country highly reliant on its oil exports. However, in recent months, oil prices have fallen by 20%. It is located near Country Y, an oil exporter which is a member of a trading bloc. Country X has some coal reserves, but faces stiff competition from Country Z, a member of the trading bloc, which also exports coal.
Which of the following would be the most effective way for the government to alleviate these circumstances?
Select ALL that apply.
Since its release. Bob Aker's 'Cooking to Go' has sold the following number of copies each Q1:
2X13:200
2X14:430
2X15:530
2X16:450
Using these figures and the equation, y (trend) = 500 + 20x, which of the following is the mean seasonal average of sales of Bob Aker's 'Cooking to Go' for Q1 over the last four years?
Calculate all the final and answer and all intermediate workings to 2 dp.
0.77
0.85
1.02
4.5
0.63
Company X is a wholesaler. It sells the majority of its products in bulk to a small number of restaurants and cafes in the local area.
Which of the following will Company X experience in light of this?
Select ALL that apply.
Quantitative easing, the purchase of government or private securities by the central banks from investors, is an example of
The component bar chart displaying sales revenues for different types of product sold by Pills Pharmaceuticals shows that the poorest performing products are its medical devices.
Which of the following may be reasons for this?
Select ALL that apply.
The government of Vencia has set out in its Budget a restrictive set of fiscal policies. These include raising VAT and the basic rate of income tax to 25%. The Bank of Vencia must now implement this Budget as monetary
policy.
Which of the following best outlines how the Bank of Vencia might do this?
A business has a contractual requirement to pay a sum of$6m in a foreign currency in 12 months time. It takes out a forward exchange contract from this sum.
Golden Crisp Cereals has calculated that its demand price elasticity is -1.4. It wants to expand in order to produce more cereal and hence increase its sales.
Which of the following are ways in which Golden Crisp Cereals could expand in the short run?
Select ALL that apply.
Golden Crisp Cereals plans to build its new factory on the outskirts of Bimbleton, an affluent medium-sized town where its current headquarters is based. The area where they are planning to build the factory was
formerly a country park.
Of the following, which stakeholder would be most likely to protest against the construction of the new Golden Crisp Cereals factory?
Pills Pharmaceuticals has founded a new department which focuses on big data analysis. The organisation plans to perform this analysis using data collected by two subsidiaries, one based in London and the other in San Francisco.
Which of Gartner's 'Three Vs' is applicable to this scenario?
The share price of Quench Drinks has been steadily falling for several years despite steady sales and a slight market share increase over the last 5 years. They have been criticised for being full of sugar and not
capitalising on the health food trend.
Quench are starting to face pressure from their shareholders to push the share price back up.
Which of the following would be most likely to improve Quench's standing in the soft drinks market?
Select ALL that apply.
Which ONE of the following is an External stakeholder in a state-owned energy provider?
A country is a net oil exporter and the demand for oil overseas is price inelastic. A substantial increase in the world price of oil would tend to
Oxfam is a charity established to provide aid to the poor. Which ONE of the following statements about Oxfam is FALSE?
A business has fixed costs of $200. Its total variable costs at different levels of output are as follows:
The business can always sell its output at a price of $100 per unit
The profit maximizing level of output is
All of the following will result from increased international mobility of factors of production except which one?
If an economy went into a recession, which industry would experience the largest proportionate fall in sales, output and employment?
The business sector will be affected by a contraction in the money supply because
In which of the stages of the trade cycle should the management accountant consider forecasting lower sales than in the previous year?
If central bankers wished to agree and implement new measures to assure the security of global banks, which ONE of the following bodies would they use?
During recessions many governments borrow to give them funds to increase government expenditure on job creation schemes. They then repay the borrowed funds during the boom phase. This is an example of which of the following?
If a central bank adopted an expansionary monetary policy the effects would include A.
£100 of new cash is issued, which is then deposited in a bank which is part of a banking system operating a cash ratio of 10%. The maximum possible increase in the money supply which can follow from this transaction, additional to the initial deposit, is
Which ONE of the following financial instruments is NOT issued for long term borrowing by the issuer?
All of the following are functions of a central bank except one. Which ONE is the exception?
What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?
When central banks adopt a policy of 'quantitative easing' this means that they:
Which of the functions of a financial intermediary is described by the following statement 'converts a flow of short-term deposits into a supply of long term loans'?