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BA1 Exam Dumps : Fundamentals of Business Economics

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Fundamentals of Business Economics Questions and Answers

Question 1

When faced with a recession, the appropriate combination of policies for a government in order to generate a recovery is

Options:

A.

Tax cuts, reduced public expenditure and lower interest rates.

B.

Monetary expansion, increases in public expenditure and an appreciation of the exchange rate.

C.

Reduction of the fiscal deficit and increased money supply.

D.

Tax cuts, monetary expansion and a depreciation of the exchange rate.

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Question 2

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

Options:

A.

Demographic statistics published in a census

B.

The l{ addresses of computers in these areas

C.

The level of youth unemployment as recorded by the government

D.

The prominence of other brands focused on young people in the area

Question 3

If a firm reduces the price of its good from $10 to $8 and, as a result, sales rise from 20,000 per month to 22,000 per month, the price elasticity of demand for its good must be

Options:

A.

-1

B.

-0.5

C.

+0.5

D.

+1