BA1 Exam Questions Tutorials

Fundamentals of Business Economics Questions and Answers

Question 29

Which ONE of the following would make the market supply of a product price elastic?

Suppliers are unable to store unsold product

Firms can join the industry easily

Demand is price elastic

There is a shortage of resources to make the product

Question 30

Which of the following statements about public goods is correct?

Public goods are defined as those goods provided by the state

Public goods are examples of free goods

Public goods are characterized by the free-rider problem

The problem of scarcity does not affect the provision of public goods

Question 31

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

is conditioned by the expected reaction of rival producers

tends to ignore expectations about consumer reactions

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

is largely determined by government competition rules

Question 32

Which of the following is likely to cause the demand curve of margarine to shift to the left?

A fall in the price of margarine

A fall in the cost of vegetable oils

A successful advertising campaign by butter producers

A fall in the price of bread