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BA1 Premium Exam Questions

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Question 40

In a supply and demand diagram, other things remaining the same, an increase in production costs will normally shift:

Options:

A.

The demand curve to the right

B.

The supply curve to the right

C.

The demand curve to the left

D.

The supply curve to the left

Question 41

Economies of scale can result from all the following except one. Which is the exception?

Options:

A.

An increase in the size of a firm's capacity and plant

B.

A bus company replacing smaller buses with larger buses

C.

A factory employing two shifts of workers rather than one shift per day

D.

Increased firm size allowing the firm to employ specialist managers

Question 42

Whenever demand for a good is price elastic, an increase in price will

Options:

A.

Increase monopoly power

B.

Increase consumer expenditure on the good

C.

Increase consumer expenditure on a good in joint demand

D.

Decrease total consumer expenditure on the good

Question 43

Which ONE of the following would be expected to reduce the net present value of a proposed investment project?

A rise in

Options:

A.

the expected cash flows from the project

B.

the scrap value of the capital at the end of the project's life

C.

interest rates

D.

the net present value of alternative projects

Page: 10 / 17
Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: May 16, 2024
Questions: 468
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