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Fundamentals of Business Economics

Last Update 19 hours ago Total Questions : 468

The Fundamentals of Business Economics content is now fully updated, with all current exam questions added 19 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 # 51

Whenever a government provides health care services free of charge

A.

Economic welfare is maximized

B.

Government expenditure on the provision of public goods increases

C.

The incentive to provide private health care through the market disappears

D.

Provision of merit goods by the state is taking place

Question # 52

If a group of countries have adopted:

(i). Free trade in goods and services between member states,

(ii). Free movement of capital and labor between member states,

(iii). A common external tariff policy,

This would be an example of a(n)

A.

free trade area

B.

customs union

C.

common (or single) market

D.

economic union

Question # 53

Which of the following functions is not performed by investment exchanges such as NASDAQ, the London Stock Exchange or the New York Stock Exchange?

A.

A primary market for newly issued private securities

B.

A secondary market to make existing shares liquid

C.

A provider of regulation over assets and trading methods

D.

A lender of last resort to the banking system

Question # 54

Which of the following are known as automatic stabilizers because they tend to reduce the fluctuations in economic activity associated with the business cycle?

(i). Progressive income taxes

(ii). Unemployment benefits

(iii). Means-tested welfare benefits

(iv). Regressive taxation

A.

(i) and (iv) only

B.

(ii) and (iii) only

C.

(i), (ii) and (iii) only

D.

(ii), (iii) and (iv) only

Question # 55

Which of the following is NOT achieved by the price mechanism in a market economy?

A.

Signaling of consumers ' requirements

B.

Allocation of adequate resources for future investment

C.

Rationing of scarce resources between potentially unlimited demands

D.

Setting of rewards to factors of production

Question # 56

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?

A.

The IMF

B.

The World Bank

C.

The WTO

D.

The G20

Question # 57

Which of the following might justify a policy of privatization by the government?

(i). Privatization inevitably reduces monopoly power and exploitation in the economy

(ii). Privatization may be expected to increase the efficiency and competitiveness of the economy

(iii). Revenue raised from privatization can reduce the public sector borrowing requirement

(iv). Privatization helps to promote an enterprise culture amongst the population

A.

(i) and (ii) only

B.

(ii) and (iii) only

C.

(iii) and (iv) only

D.

(ii), (iii) and (iv) only

Question # 58

Which one of the following would lead to a fall (depreciation) in the exchange rate for a country ' s currency?

A.

A fall in interest rates in that country

B.

An inflation rate below that of the country ' s trading partners

C.

A fall in that country ' s imports

D.

A fall in the export of capital from that country

Question # 59

Which one of the following methods of government borrowing is most likely to be inflationary?

The sale of:

A.

Treasury bills to the banking sector

B.

Long-term securities to insurance companies and pension funds

C.

National savings securities to the general public

D.

Long-term securities to the banking sector

Question # 60

Identify the source of funds most appropriate for a growing company to use which wishes to borrow funds long-term to pay for initial marketing research and promotion?

A.

A debenture

B.

A commercial bill

C.

Ordinary shares

D.

Overdraft

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