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Fundamentals of Business Economics

Last Update 4 hours ago Total Questions : 468

The Fundamentals of Business Economics content is now fully updated, with all current exam questions added 4 hours ago. Deciding to include BA1 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our BA1 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these BA1 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Fundamentals of Business Economics practice test comfortably within the allotted time.

Question # 91

Which ONE of the following increases the price of the shares in ABC plc?

A.

A fall in interest rates

B.

Falling demand for some of ABC ' s key products

C.

Constant ROCE at ABC plc

D.

News of better economic outlook in ABC ' s home country

Question # 92

The consequences of globalization for national economies include all of the following except which one?

A.

Greater independence in economic policy making.

B.

Increased international trade and capital flows.

C.

Greater synchronization of trade cycles.

D.

Increased vulnerability to external economic shocks.

Question # 93

In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?

A.

A manufacturer of industrial machine tools

B.

A chain of supermarket grocery stores

C.

A motor insurance company

D.

A toothpaste manufacturer

Question # 94

In which of the stages of the trade cycle should the management accountant consider forecasting lower sales than in the previous year?

A.

Recession

B.

Depression

C.

Recovery

D.

Boom

Question # 95

Which of the following best defines a fiscal policy?

A.

A policy that increases government spending to increase national income

B.

A policy which seeks to influence the economy through manipulation of government spending and taxation

C.

A policy aimed at influencing the level of aggregate demand in the economy

D.

A policy which controls inflation by controlling the amount of money in the economy

Question # 96

Which ONE of the following should NOT be classed as an agent of a firm ' s shareholder?

A.

A non-executive director

B.

An executive director

C.

The chair of the company

D.

The firm ' s banker

Question # 97

A ' supply-side ' economist would recommend that in the long term, a country ' s unemployment problem should be tackled by

A.

A reduction in the money supply

B.

Income tax cuts to promote labor market incentives

C.

Tax cuts to expand aggregate demand

D.

Increasing the job-seekers allowance and the period for which it can be claimed

Question # 98

On an aggregate demand and aggregate supply diagram, cost-push inflation is shown by

A.

A leftward shift of the short-run aggregate supply curve

B.

A rightward shift of the aggregate demand curve

C.

A rightward shift of the long-run aggregate supply curve

D.

A leftward shift of the aggregate demand curve

Question # 99

Which of the following statements about macroeconomic policy objectives is correct?

A.

Governments always regard control of inflation as the most important policy objective

B.

Conflicts between objectives mean that macroeconomic policy can never be regarded as successful

C.

Expanding demand to reduce unemployment may mean that the balance of payments worsens

D.

The pursuit of economic growth inevitably increases unemployment

Question # 100

When the economy is in recession, which of the following is least likely to reduce unemployment?

A.

An expansionary fiscal policy

B.

The central bank cutting interest rates

C.

Retraining schemes for redundant workers

D.

A regulation extending employment rights for newly-hired workers

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