Business Economics Sample Questions

In: Business and Management

Submitted By Karim12
Words 1393
Pages 6
1) For an economy to produce at a point beyond its current production possibility curve, the economy must:

A) reduce inputs.
B) be more efficient.
C) increase inputs.
D) waste less.

2) When a decrease in the price of good A causes an increase in demand for good B, the goods are:

A) inferior.
B) normal.
C) complements.
D) substitutes.

3) Which of the following might shift the demand curve for butter to the right?

A) An increase in the price of bread, a complement
B) An increase in income
C) A decrease in the price of margarine, a substitute
D) A decrease in the price of butter

4) A good harvest will cause:

A) a movement up along the supply curve of wheat.
B) a movement down along the supply curve of wheat.
C) a rightward shift in the supply curve of wheat.
D) a leftward shift in the supply curve of wheat.

5) If total expenditure remains constant after price is increased, demand is:

A) inelastic.
B) perfectly elastic.
C) unitarily elastic.
D) perfectly inelastic.

6) The short run, as microeconomists use the phrase, is characterised by:
A) a period where the law of diminishing returns does not hold.
B) no variable inputs - that is all of the factors of production are fixed.
C) all inputs being variable.
D) at least one fixed factor of production and firms neither leaving nor entering the industry.

7) Philippa grows lettuces to sell. This is a perfectly competitive business and Philippa faces a perfectly elastic demand curve. If she wants to try to increase revenues she should:

A) lower the price of her lettuce to try to sell more.
B) keep the price the same but produce more to increase sales.
C) do nothing; there is nothing she can do to increase revenues.
D) raise the price of her lettuces to make more per sale.

8) For a profit maximising monopolist to sell more…...

Similar Documents

Sample Answer for Novel Question

...MARKING SCHEME: CONTENT : 10 MARKS LANGUAGE : 5 MARKS TOTAL : 15 MARKS SAMPLE QUESTION & GUIDELINE ON HOW TO ANSWER NOVEL QUESTION. QUESTION :CHOOSE A CHARACTER THAT YOUADMIRE FROM THE NOVEL THAT YOU HAVE STUDIED. WITH CLOSE REFERENCE TO THE TEXT ,GIVE REASONS FOR YOUR CHOICE AND HOW THE CHARACTER HELPS YOU IN YOUR LIFE. STEP 1: Start you answer by writing the title of the novel and the person who wrote it. At the same time the character you admire the most. STEP 2: Give reasons for your choice in a new paragraph and start your sentence with something like; First of all or just as easy as firstly. In giving your reason you must give the incident that is related to the situation in order to proof your point. STEP 3: Give a few more reasons/proof from the novel to support your answer. STEP 4: Remember to answer the second part of the question after giving your reasons/proof. You can do this in each of the paragraphs or write it as conclusion at the end of your answer. STEP 5: To end your writing, give a conclusion by combining the reasons or answering the second part of the question SAMPLE ANSWER BY FOLLOWING THE ABOVE GUIDELINE (THE CURSE) Based on the novel “The Curse” by Lee Su Ann the character that I like and admire is Azreen because of a few reasons. The first reason is because Azreen is such a strong character that has great courage as she is open, positive and always fights for what she believes in. Firstly, she......

Words: 507 - Pages: 3

Business Economics Questions

...Business Economics Questions: 1. Explain the subject matter of economics as question concerning the adjustments between unlimited want and limited resources. 1 & 2 2. Explain how Market/Price mechanism solves there central problems of economics 1 & 2 3. Explain why the price in competitive markets settles down the equilibrium intersection of supply and demand. Explain what happens if the market price starts out too high or too low. 3 4.Explain the economic meaning 0f price elasticity of demand with the help of numerical example of your own choice. 4 & 5 5. Discuss the major determinant of price elasticity of Demand 4 & 5 6. Critically Discuss the law of diminishing marginal utility of a numerical example and suitable diagram 5 Price Elasticity of Demand   The elasticity of demand (ed) is a measure of the price responsiveness to the quantity demanded and is equal to the percentage change in quantity demanded divided by the percentage change in price. Because the elasticity of demand can vary depending on whether one moves up or down the demand curve, elasticities of demand are often calculated by taking an average the prices and quantities given by the following formula:   ed = change in Q / change in P (Q1 + Q2)/2 (P1 + P2)/2   Determinants of price elasticity of demand 1. existence of substitutes—the closer the substitutes for a particular commodity, the greater will be its price elasticity of demand 2. importance of the commodity in the...

Words: 342 - Pages: 2

Sample Questions About Eng

...ACCUPLACER® Sample Questions for Students © 2012 The College Board. College Board, ACCUPLACER, WritePlacer and the acorn logo are registered trademarks of the College Board. All other products and services may be trademarks of their respective owners. Visit the College Board on the Web: www.collegeboard.org. Sentence Skills In an ACCUPLACER® placement test, there are 20 Sentence Skills questions of two types. • The first type is sentence correction questions that require an understanding of sentence structure. These questions ask you to choose the most appropriate word or phrase for the underlined portion of the sentence. • The second type is construction shift questions. These questions ask that a sentence be rewritten according to the criteria shown while maintaining essentially the same meaning as the original sentence. Within these two primary categories, the questions are also classified according to the skills being tested. Some questions deal with the logic of the sentence, others with whether or not the answer is a complete sentence, and still others with the relationship between coordination and subordination. 3. To walk, biking, and driving are Pat’s favorite ways of getting around. A. To walk, biking, and driving B. Walking, biking, and driving C. To walk, biking, and to drive D. To walk, to bike, and also driving 4. When you cross the street in the middle of the block, this is an example of jaywalking. A. When you cross the street in the middle of...

Words: 11195 - Pages: 45

Bus100 Sample Exam Questions

...BUS100 Sample Exam 1 Student: ___________________________________________________________________________ 1. Which of the following organizations is an example of the goods-producing sector of the economy? A. Ford Motor Company B. Florida State University C. Children's Hospital D. H & R Block Tax Consulting 2. Which of the statements about demography is most accurate? Demographic studies: A. focus on factors that have great political relevance, but little relevance to business firms. B. suggest that the number of two-income families will decline in the future. C. provide business and individuals with insights into business and career opportunities of the future. D. are an important source of information about changes in weather and climate. 3. Public schools, charities and government agencies are not classified as businesses because they: A. have not been incorporated. B. do not seek to earn a profit. C. provide services rather than goods. D. do not have any stockholders. 4. In order to make an intelligent investment decision, entrepreneurs should: A. limit their options to those business investments that are backed by the U.S. government. B. invest in businesses that have generated a stable rate of profit for at least the past ten years. C. invest only in business opportunities where it is possible to take an active role in management. D. compare the risks of potential investments to their expected profits and find the right......

Words: 2600 - Pages: 11

Sample Business Recomendation

...Sample Business Recommendation Introduction This report examines two potential investment opportunities in which in which only one has to be recommended for funding. The start –ups are, Family Branch , a new global genealogy website where people connect up with other family trees, and the other being Paddy Pizza which would like to open up a restaurant in Dundrum Town Centre . In this project I will elaborate on economic factors that will help to determine the choice of project to undertake. To understand the market Paddy Pizza Family Branch would competes in, a review of the Pizza and family tree business sectors conducted. PESTLE and SWOT analyses to familiarize with the business environment of the same would operate in were under taken too. Additionally, to comprehend the competitive environment Five Forces analysis that focused on Paddy Pizza’s and Family Branch’s would be competitors was drawn . All these analyses were consolidated in the respective business plans for the two proposals. Consumer analyses as well as projected first year’s Final accounts were also assumed. Paddy Pizza The scenario for Paddy Pizza is the first to be considered. After scanning through pizza market environment in Dundrum it is clear that there is a few very large companies in the area. Their behaviour is interdependent that is to say what one company does the rest quickly follow. This is prevalent in their pricing behaviour, that is when one raise or lowers the price the others......

Words: 1683 - Pages: 7

Economics Question

...Both goods are necessity products and in that can be described as price inelastic. By saying inelastic, I mean that milk formula and nappies overall is everyday need and parents have to buy them as babies needs food and their nappies must be changed. So even if the price would go up, customers still would buy it. But if different brands would be compared, then could be said that price is more elastic, as if X firm of nappies would rise price, buyers could switch to the brand Y. At the moment baby formula milk price range is from £7.99 to £9.99 per 900g. Nappies economic (big) pack price varies from £5.99 to £9.99. Most of the time nappies can be bought on offer, for example, 2 for (£10 to £16) or even 1/3 of the full price. As on baby milk formula prices does not change. As both products are necessity and therefore less sensitive to the price changes overall, why there is such a difference with “an offer” case. In economic terms I have thought of two reasons. First is that the formula milk is less sensitive to the price changes then the nappies. If the baby cannot be fed by mother, the formula milk is the only way to survive for the baby. Regarding nappies usage, one could try to save nappies by less changing it, or start using the changing types used before nappies were created. Also customers might switch to another similar product as at the moment there is more nappy selling firms as it used to be. However with baby milk, just one firm is used during baby's first year......

Words: 529 - Pages: 3

Fin 4604 Sample Questions

...Additional Sample Questions. Set I (red) Set II (blue), and Set III (black). 1. Which of the following would likely have the least direct influence on a country’s current account? a. Inflation. b. National income. c. Exchange rates. d. Tariffs. e. Tax on income earned on foreign stocks. 2. ______________ is (are) income received by investors on investments in foreign financial assets (securities). a. Portfolio income b. Foreign direct investment income c. Unilateral transfers d. Factor income e. All of the above 3. Also known as the “Central Banks’ Central Bank,” the ___________ attempts to facilitate cooperation among countries with regard to international transactions and provides assistance to countries experiencing a financial crisis. a. World Bank b. International Financial Corporation (IFC) c. World Trade Organization d. International Development Association (IDA) e. Bank for International Settlements (BIS) 4. ___________ is not a factor that causes currency supply and demand schedules to change. a. Relative inflation rates b. Change in exchange rates. c. Relative interest rates d. Relative income levels e. Expectations 5. A large increase in the income level in Mexico along with no growth in the U.S. income level, ceteris paribus, is expected to......

Words: 5224 - Pages: 21

Sample Interview Questions

...INFORMATION TECHNOLOGY – Sample Interview Questions Disaster Recovery/Business Resumption 1. 2. 3. 4. What are the essential elements of a business resumption plan? How is a disaster recovery/business resumption plan developed? What is the purpose of a disaster recovery/business resumption plan? What steps would you take to insure that a disaster recovery/business resumption plan is tied to business requirements? E-Commerce 1. Within the business environment, what are the operations areas that may be leveraged with e-commerce? 2. Tell us about your experience with electronic commerce. 3. What are some of the pitfalls when an e-commerce strategy is poorly executed? 4. Name five characteristics of successful e-commerce sites. Help Desk 1. What experience have you had in help desk operations? 2. What skills will you look for in staffing a help desk operation? 3. What items of information would you request from a user to effectively address a technical problem? Internet 1. 2. 3. 4. What is the Internet? Tell us about your experience in developing or maintaining an Internet site. In what ways can the Internet help public service agencies improve service to the public? The City has implemented an Internet site. Name some of the means by which an Internet site may be used to improve communication with the citizens and encourage community involvement. 5. What are the factors to consider in establishing a Web presence? 6. Why are a......

Words: 985 - Pages: 4

Sample Business Plan

...SOURCE: Microsoft Office 2002 – Business Planner Templates To see many other sample business documents open MS Word 2002 and from the menu select: File – New – More Word Templates Introduction to the Sample Plan The following document is a sample of a finished business plan. In your final plan, you have the opportunity to elaborate on those ideas in your outline that you feel are most integral to your business. In composing your business plan, you can follow your outline as loosely or closely as you choose. For instance, in the sample plan, the Executive Summary, which is the last section of the Business Planning Wizard, is presented first in order to emphasize the most impressive features of the business. Your goal in composing a finished business plan is to construct the most comprehensive, thorough document possible, in order to attract investors and to confirm that you have taken the time to explore as many potential issues for your business as may arise. Mr. Richard Carey Canton Street Seattle, Washington 22222 Dear Mr. Carey: My attorney, Mr. William Hollands, suggested I write to you regarding my business, Northwind Traders. I am currently seeking funding, and I believe that my company would coincide with your interest in businesses relating to the travel industry makes my company a great investment for you. Northwind Traders is positioned to take advantage of the significant market opportunities available in the customized travel-planning......

Words: 12483 - Pages: 50

Sample Questions for Interview

...1. How would you describe yourself? Sample excellent response: My background to date has been centered around preparing myself to become the very best financial consultant I can become. Let me tell you specifically how I’ve prepared myself. I am an undergraduate student in finance and accounting at ____________ University. My past experiences has been in retail and higher education. Both aspects have prepared me well for this career. 2. What specific goals, including those related to your occupation, have you established for your life? Sample excellent response: I want to be working for an excellent company like yours in a job in which I am managing information. I plan to contribute my leadership, interpersonal, and technical skills. My long-range career goal is to be the best information systems technician I can be for the company I work for. 3. How has your college experience prepared you for a business career? Sample excellent response: I have prepared myself to transition into the the work force through real-world experience involving travel abroad, internship, and entrepreneurial opportunities. While interning with a private organization in Ecuador, I developed a 15-page marketing plan composed in Spanish that recommended more effective ways the company could promote its services. I also traveled abroad on two other occasions in which I researched the indigenous culture of the Mayan Indians in Todos Santos, Guatemala, and participated in a......

Words: 1990 - Pages: 8

Economics Ia Sample for Dp

...IB Economics – Internal Assessment Coversheet School Code 1339 | Name of SchoolGuangdong Country Garden School | Candidate name | | Candidate number | 001339-0044 | Economics commentary number | COMMENTARY NUMBER 1 | Title of the article | Northern Ireland's new five-pence carrier bag tax | Source of the article | BBC NEWShttp://www.bbc.co.uk/news/uk-northern-ireland-22047872 | Date the article was published | 08/04/2013 | Date the commentary was written | 29/ 12/2013 | Word count (750 words maximum) | 749 words | Section of the syllabus the article relates to (please tick the one that is most relevant) | * Section 1: Microeconomics * Section 2: Macroeconomics * Section 3: International Economics * Section 4: Development Economics | Commentary Number 1 News Article Northern Ireland's new five-pence carrier bag tax 8 April 2013Last updated at 15:37 GMT The Department of the Environment hopes to see an 80% reduction in bag use. The new levy on plastic carrier bags has come into effect in Northern Ireland. Retailers must now charge shoppers at least five pence for each new single-use carrier bag. The proceeds of the tax will be forwarded to the Department of the Environment. The department hopes to see an 80% reduction in the use of carrier bags as a result of the levy. The tax also applies to bags made from paper, plant-based material, or natural starch. The regulations also allow for a range of exemptions on the grounds of......

Words: 1304 - Pages: 6

Question Sample

...Bangalore The problems below are similar to problems that students have had the greatest difficulty correctly solving on recent exams. Correct answers are provided at the end of the problem set. Exam 1 will cover many more items than just the concepts presented here. This exercise is just meant to give you additional practice on the types of problems that have given students the most difficulty. Q1 When the transactions costs associated with completing an activity by entering into a contract with another firm rise, the likelihood that this activity is done “external” to the firm by contracting with another firm _____ and the odds that it is done “internally” within the firm ____. A rises; falls B falls; rises Answer the next 4 Questions by 1st creating the following graph: Draw a standard supply and demand diagram, refer to it as Figure 1 label the intersection point of the supply and demand curves as Point A move from Point A up and to the left along the demand curve and label a point on the demand curve Point B move from Point A down and to the right along the demand curve and label a point on the demand curve Point C move from Point A up and to the right along the supply curve and label a point on the supply curve point D move from Point A down and to the left along the supply curve and label a point on the supply curve point E Q2 If Figure 1 represents the market for solar power cells and it initially is in equilibrium at Point A, the new......

Words: 1218 - Pages: 5

Exam 1 Sample Questions

...2012 Students: These sample questions were pulled from last year’s exam. Note that not all the material covered to this point matches up with what I did last year. Hence some material below may be unfamiliar to you. However, these are reasonably representative of the type of questions you are likely to see. 1.Financial accounting a) provides useful information primarily for external decision makers. b) is required for corporations but probably would not be done by other business entities. c) provides information primarily for the use of managers of the company. d) has been practiced in this country for approximately the last 15 years. 2. The Financial Accounting Standards Board employs a "due process" system for making GAAP. This process… a. is an efficient system for collecting dues from members. b. enables interested parties to express their views on issues under consideration. c. establishes new standards based only on FASB board members’ discussions. d. requires that all accountants must receive a copy of financial standards. 3. A decrease in net assets arising from peripheral or incidental transactions is called a(n) a. capital expenditure. b. cost. c. loss. d. expense. 4.   An accounting record into which the essential facts and figures are posted        when it is time to make the financials is called the        a. general ledger.        b. cash flow statement.        c. trial balance.        d. general journal.        e. Major General.  5. If, during an accounting......

Words: 2205 - Pages: 9

Apa Sample Questions Assignment

...IMPACT OF DEMOCRACY ON ECONOMIC DEVELOPMENT Impact of Democracy on Economic Development (Student’s Name) Professor (Name) Political Science 25 April 2012 IMPACT OF DEMOCRACY ON ECONOMIC DEVELOPMENT Abstract IMPACT OF DEMOCRACY ON ECONOMIC DEVELOPMENT Impact of Democracy on Economic Development Introduction There is a need to put into proper perspective the impact of democracy on economic development. In recent years, the discourse about democracy and development has gained prominence. Countries with long history of democratic governance have been noted to be doing well economically. It is the view of this author that so far a comprehensive assessment of the full impact of democracy on economic development is yet to be done.Probably, the reason as to why this has been so is because there is an obvious assumption that democracy will always have a positive impact on economic development. It is worthwhile however, to move away from the sweeping generalization and put this issue into proper perspective. It is proper to establish the full impact of democracy. In this study, the author will seek to establish the impact of democracy on economic development. Since its origins in ancient Greece, when Greeks created city states as......

Words: 812 - Pages: 4

Finance Sample Questions

...Additional Sample Questions. Set I (red) Set II (blue), and Set III (black). 1. Which of the following would likely have the least direct influence on a country’s current account? a. Inflation. b. National income. c. Exchange rates. d. Tariffs. e. Tax on income earned on foreign stocks. 2. ______________ is (are) income received by investors on investments in foreign financial assets (securities). a. Portfolio income b. Foreign direct investment income c. Unilateral transfers d. Factor income e. All of the above 3. Also known as the “Central Banks’ Central Bank,” the ___________ attempts to facilitate cooperation among countries with regard to international transactions and provides assistance to countries experiencing a financial crisis. a. World Bank b. International Financial Corporation (IFC) c. World Trade Organization d. International Development Association (IDA) e. Bank for International Settlements (BIS) 4. ___________ is not a factor that causes currency supply and demand schedules to change. a. Relative inflation rates b. Change in exchange rates. c. Relative interest rates d. Relative income levels e. Expectations 5. A large increase in the income level in Mexico along with no growth in the U.S. income level, ceteris paribus, is expected to......

Words: 5224 - Pages: 21

On se reverra | Le Portrait de Petit Cossette Episode 3 English Dubbed | Bolso Claqué