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Fundamentals of Business Economics

Last Update 6 days ago
Total Questions : 468

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Question # 1

A car dealer uses the following trend equation to estimate the number of cars sold each quarter

Y = 120 + 3t

Where y = number of cars sold each quarter and t = time period expressed in units

What is the forecasted number of cars sold in period 12. if there is an additive seasonal factor of 55?

Options:

A.  

156

B.  

101

C.  

211

D.  

139

Discussion 0
Question # 2

Company GHI wishes to develop a linear model for forecasting tractor sales based on the number of sales people it employs. In the model, tractor sales will be the dependent variable and the number of sales people the independent variable

The company has collected sales data from each of its branches over the past year which has been reported below:

Options:

Discussion 0
Question # 3

The following scatter diagram displays the total life expectancy in years on the X axis and GDP per capita (constant 2000 S) on the Y axis, in Country S for the past 40 years. Which of the following statements is true in respect of the graph?

Options:

A.  

A perfect positive linear relationship is shown in the diagram.

B.  

In most years, the samples shows a clear negative trend in the diagram

C.  

There is no correlation between the level of GDP per capita and life expectancy.

D.  

In some years, the level of GDP per capita and life expectancy moved in opposite directions.

Discussion 0
Question # 4

Which of the following describes the slope of a normal supply curve?

Options:

A.  

Upwards from right to left.

B.  

Upwards from left to right.

C.  

Downwards from left to right.

D.  

Downwards from right to left.

Discussion 0
Question # 5

An institution offers an 8 percent compound interest rate annually for six years, for an investment of S250,000 What is the total amount of interest that would be received over the six years'?

Options:

A.  

$370,000.00

B.  

$396718.58

C.  

$146,718.58

D.  

$120.000 00

Discussion 0
Question # 6

Which of the following types of graph uses cumulative frequency distributions to illustrate information?

Options:

A.  

Bar chart

B.  

Histogram

C.  

Scatter graph

D.  

Ogive

Discussion 0
Question # 7

If the production of a good involves an external social cost, resource allocation could be improved by:

Options:

A.  

providing a subsidy for the consumers of the good

B.  

imposing an indirect tax on the good

C.  

providing a subsidy for the producers of the good

D.  

the government imposing price controls to reduce the price of the good.

Discussion 0
Question # 8

Which of the following statements defines a diseconomy of scale?

Options:

A.  

A reduction in the unit average cost caused by increasing the scale of production in the long run.

B.  

An increase in the unit average cost caused by increasing the scale of production in the long run

C.  

An increase in the unit average cost caused by decreasing the scale of production in the long run.

D.  

A reduction in the unit average cost caused by decreasing the scale of production in the long run.

Discussion 0
Question # 9

Which of the following organisational arrangements is an example of a multinational corporation (MNC)?

Options:

A.  

An insurance company based in Country E opens a sales office in Country F in order to service the local market

B.  

A music production company based in Country C signs a contract with an artist's management company based in Country

D.  

C.  

A retailer based in Country G uses an online retail platform in order to sell goods to customers in Country H.

D.  

A chain of restaurants based in Country B signs a franchise agreement with a company that intends to open restaurants in Country

A.  

Discussion 0
Question # 10

An investor has bought a financial asset that pays a variable interest rate at the end of a three-year period At the same time, the invest forward rate agreement (FRA) on an agreed forward rate of 3% at the asset's maturity. What is the advantage of the FRA?

Options:

A.  

If the market interest rate at the asset's maturity is lower than 3%. the bank will pay the investor for the difference in rates

B.  

If the market interest rate at the asset's maturity is lower than 3%. the asset's maturity will be extended for another year

C.  

If the market interest rate at the asset's maturity is higher than 3%, the investor will have the option to drop the FRA upon payment

D.  

If the market interest rate at the asset's maturity is higher than 3%, the investor will be able to receive the higher market rate

Discussion 0
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