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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

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Question 1

One of the features of an oligopoly market is that the pricing strategy of producers

Options:

A.

is conditioned by the expected reaction of rival producers

B.

tends to ignore expectations about consumer reactions

C.

is constrained by the absence of barriers to entry into the industry

D.

is largely determined by government competition rules

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Question 2

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

Options:

Question 3

'The £ has risen against other currencies since August, defying forecasters who thought that the UK's widening trade deficit must cause the £'s exchange rate to fall.'

From the above information, it can be concluded that, since August

Options:

A.

UK exports have become less price competitive

B.

The UK inflation rate has increased

C.

UK interest rates must have increased

D.

The strengthening pound has improved the UK balance of payments on current account

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