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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 # 61

In the foreign exchange market all of the following are sources of demand for a country ' s currency except one. Which ONE is the exception?

A.

That country ' s exports

B.

Inflow of capital into that country

C.

That country ' s invisible earnings

D.

Purchases of the currency by the central bank

Question # 62

Which of the following have been recommended in order to prevent a repeat of the 2008 financial crisis?

A.

Higher capital adequacy ratios for commercial banks

B.

A reduction in the required liquidity ratio for commercial banks

C.

The merging of retail and investment banking

D.

The purchase of bank shares by the government

Question # 63

The linking of net savers with net borrows is known as:

A.

financial intermediation

B.

the savings function

C.

money transfer

D.

credit creation

Question # 64

A rise in the demand for petrol by motorists is likely to follow a rise in the price of:

A.

Steel

B.

Second-hand cars

C.

Public transport

D.

Motor insurance

Question # 65

A profit-maximizing firm will cut the product ' s price to increase profits if

A.

Demand is elastic

B.

Unit costs fall

C.

The demand curve shifts rightwards

D.

Marginal revenue is greater than marginal cost

Question # 66

Production of a good is in the public interest if

A.

Social benefits are greater than social costs

B.

Private benefits equal private costs

C.

External benefits equal external costs

D.

Social costs are greater than private costs

Question # 67

If, when the price of a good increases, the total revenue received by the supplier decreases, then

A.

the demand for the good must be price inelastic

B.

the demand for the good must be price elastic

C.

the demand for the good must have unitary elasticity

D.

the supply of the good must be price inelastic

Question # 68

All of the following would be motives for a horizontal merger except one. Which ONE is the exception?

A.

To reduce competition in the industry

B.

To secure economies of scale

C.

To secure sources of supply

D.

To pool technology and research

Question # 69

When the government intervenes in the market economy to correct a market failure

A.

Economic welfare always increases

B.

The problem of government failure may result

C.

In all cases the market mechanism ceases to function

D.

The intervention always creates a surplus

Question # 70

XYZ plc has relocated its head office to a new site which enjoys better road communications and is close to a training college that teaches the skills needed to work at XYZ plc. Why will XYZ ' s costs fall?

A.

It will gain the benefits of technical economies of scale

B.

It will gain the benefits of managerial economies of scale

C.

It will gain the benefits of external economies of scale

D.

It will gain the benefits of financial economies of scale

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