Spring Sale Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: buysanta

Exact2Pass Menu

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 # 101

Which of the following best defines “aggregate supply”?

A.

The stock of output available for sale in an economy

B.

The full employment level of output of the economy

C.

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

D.

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

Question # 102

Inflation is undesirable for all of the following reasons except which one?

A.

Inflation decreases the international competitiveness of the business sector.

B.

Inflation distorts the price system and the process of resource allocation.

C.

Inflation shifts wealth from debtors to creditors in an arbitrary fashion.

D.

Inflation makes business forecasting and planning more difficult.

Question # 103

A business was selling 20,000 units of its product per month at a price of $10. When it lowers its price to $9 it finds that its sales rise to 24,000 units per month.

The price elasticity of demand for this firm ' s product is

Question # 104

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

A.

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

B.

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

C.

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

D.

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

Question # 105

As the process of globalization increases, typical businesses will

A.

Depend more and more on their domestic markets.

B.

Have to raise more capital from internal sources.

C.

Have less need to increase their international competitiveness.

D.

Be more and more affected by changes in exchange rates.

Question # 106

Which of the following is most likely to lead an economy to suffer high unemployment?

A.

Withdrawals exceeding injections

B.

Aggregate demand exceeding aggregate supply

C.

Injections exceeding withdrawals

D.

A fiscal deficit

Question # 107

All of the following are objectives of not-for-profit organizations except one. Which ONE is the exception?

A.

Value for money

B.

Maximization of financial surpluses

C.

Serving the public interest effectively

D.

Efficient use of physical and human resources

Question # 108

The existence of a natural rate of unemployment means that

A.

the short run Phillips curve is steeper that the long run Phillips curve.

B.

nominal wages rise faster the prices in the long run.

C.

governments cannot reduce unemployment below this level.

D.

there is no trade-off between inflation and unemployment in the long run.

Question # 109

Peter holds his current and savings accounts with Western Mutual.

Which of the following is a benefit that Peter should expect to enjoy from possessing accounts with Western Mutual?

A.

As a mutual organisation, Western Mutual will prioritise Peter ' s welfare over profits to be made

B.

Peter will receive dividends from Western Mutual as he possesses accounts there

C.

Peter will be able to make key decisions about Western Mutual as one of their customers

D.

External shareholders in the organisation will be prioritised above Peter

Question # 110

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?

A.

Environmental groups

B.

Current employees

C.

Trade unions

D.

Local residents

Go to page: