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Total 468 questions

Fundamentals of Business Economics Questions and Answers

Question 33

If the price elasticity of supply for a good over a certain price range is 0.8, the increase in the quantity supplied of that good, following a 10% increase in its price, will be

Options:

A.

0.8%

B.

8.0%

C.

18%

D.

80%

Question 34

All of the following would tend to lead to an industry being dominated by a small number of firms except one. Which ONE is the exception?

Options:

A.

Significant economies of scale in production

B.

The existence of entry barriers to the industry

C.

High initial capital costs in production

D.

Extensive consumer knowledge of products and prices

Question 35

A market is in equilibrium. If the government imposes a minimum price above the equilibrium price, there will be:

Options:

A.

an extension in demand, a contraction in supply and a market shortage

B.

a decrease in demand, an extension in supply and a market surplus

C.

a contraction in demand, an increase in supply and a market surplus

D.

a contraction in demand, an extension in supply and market surplus

Question 36

In a market economy the market mechanism can achieve all the following except one. Which is the exception?

Options:

A.

Signaling changes in consumer tastes

B.

Causing supply to respond to changes in demand

C.

Eliminating excess supply and demand

D.

Ensuring a socially fair distribution of goods and services

Page: 9 / 18
Total 468 questions