Which of the following is an example of regulation as a form of government intervention in the economy?
A financial intermediary takes the small deposits of millions of savers and uses them to buy an issue of government (treasury) bills and bonds.
Identify from the list below the principle this illustrates:
Which of the following businesses would benefit most from an expansionary monetary policy?
Which of the following would result from a depreciation in the exchange rate for a country's currency?
i. A fall in the foreign exchange price of that country's exports.
ii. A rise in the foreign exchange price of that country's imports.
iii. A rise in production costs for businesses using imported inputs.
iv. A worsening in that country's terms of trade.
v. A fall in the domestic prices of that country's imports.
vi. A rise in the domestic price of that country's exports.
If the demand curve for good A is negatively sloped, a fall in the price of a substitute good B results in
Which ONE of the following would tend to make the demand for a product price inelastic?
In a fully employed economy, which one of the following would lead to demand pull inflation?
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
If a manufacturing firm contributes to global warming as a byproduct of its production process, this is an example of
All of the following will tend to increase the number of firms in any one industry except which one?
If the government imposed a legal minimum wage that was above the market equilibrium wage, the resulting unemployment would be the greatest when:
Which ONE of the following circumstances is essential if producer incomes are to rise following the imposition of a price floor (minimum price) in a market?
Some not-for-profit organizations (NPOs) are required to show they are effective. Which one of the following most closely defines effective?
If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:
i. Higher interest payments on its bank borrowing.
ii. Falling credit based sales.
iii. Higher income and corporate taxes.
iv. Lower sales to government agencies.
v. Difficulties in securing working capital
vi. Higher prices for imported components.
Which of the following is a primary objective of a not-for-profit organisation?
Which global financial institution is responsible for making long term loans to assist developing countries to invest and develop?
A 'supply-side' economist would recommend that in the long term, a country's unemployment problem should be tackled by
Which of the following statements about macroeconomic policy objectives is correct?
Which of the following would not be a reason for a government to impose a quota on imports?
Which ONE of the following best explains the statement 'In not for profit organizations money is a constraint and not a goal'?
Which ONE of the following statements best defines the principal-agent problem in a company?
When central banks adopt a policy of 'quantitative easing' this means that they:
Which of the following are known as automatic stabilizers because they tend to reduce the fluctuations in economic activity associated with the business cycle?
(i). Progressive income taxes
(ii). Unemployment benefits
(iii). Means-tested welfare benefits
(iv). Regressive taxation
Which theory of the firm is described by the following statement?
'The decisions of management are the result of a political maneuvering of the various stakeholders connected to the organization.'
All of the financial instruments are traded on the long term capital market except one. Which ONE is the exception?
Which of the functions of a financial intermediary is described by the following statement 'Bundles small deposits of liquidity into larger loans'?
Which of the following have been recommended in order to prevent a repeat of the 2008 financial crisis?
All of the following are functions of a central bank except one. Which ONE is the exception?
The following cash flows are for a capital project where the required rate of return is 8 percent
Calculate the NPV for the project. Give your answer to the nearest whole number
Country A's tax system is one where every citizen pays tax on earned income over S12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise.
Which of the following describes the nature of the tax paid by individuals in Country A?
Company A is looking to protect itself from transaction exchange rate risk.
Company A does not require 100% of the value of transaction to be protected, and it would like the method it uses to have the following characteristics
• An agreed exchange rate for a specified period where both parties have a legal obligation
• A separation of the contract guaranteeing the pnce of the currency from the underlying transaction.
Which of the following would best provide the type of protection from exchange rate risk company A wants?
Which of the following is correct in regards to organisations?
Organisations achieve more than individuals can achieve on their own because they enable people to
(1) share skills and knowledge
(2) maximise individuals' interests.
(3) specialise
(4) pool resources
According to the principle of comparative advantage which of the following explains how country V may benefit from international trade?
Which of the following will NOT cause an increase in the demand for public transport in City L?
Which of the following is the most likely policy response to an economic recession?
Which of the following would tend to make the market supply of a good price inelastic?
Which TWO of the following business costs are directly affected by a rise in the interest rate*? D The cost of procuring equity finance
Complete the table inputting the relevant effect for each of the scenarios listed.
Which THREE of the following can be used to reduce the principal-agent problem in business organisations?
The graph shows house prices in Lingford, a large urban town in a prosperous region.
Which of the following would be the equilibrium price for houses in Lingford?
The managing director of Polly's, a department store, has found that ten of its stores located in the south east of England have seen a significant fall in profit margin.
Which of the following is most likely to be the cause of this?
If out of every £20 million increase in national income, £2 million is saved, £4 million is spent on imports and £4 million is paid to the government in taxation, an increase in exports of £40 million will lead to an eventual increase in national income of
Best for Beer is a brewery based in the UK. In the last year, it has seen its sales decrease by 23%. During the same period, the British Government has launched and run a public health campaign against excessive
alcohol consumption due to the rising number of incidents related to excessive alcohol consumption or 'binge-drinking' in the country.
Which of the following sources would be most relevant for Best for Beer to discover more about the public health campaign's effect on sales?
Pills Pharmaceuticals has founded a new department which focuses on big data analysis. The organisation plans to perform this analysis using data collected by two subsidiaries, one based in London and the other in San Francisco.
Which of Gartner's 'Three Vs' is applicable to this scenario?
The managing director of Polly's has been given a pie chart showing the current proportion of sales across the chain's five stores.
Which of the below are the most significant reasons why the pie chart is an inappropriate way of expressing this data?
Select ALL that apply.
Which THREE of the following businesses are more likely to fare belter during a recession?
A wireless phone manufacturer currently sells 2,000 units per quarter at a price of $400 The estimated price elasticity of demand is -2.5.
The manufacturer is considering an increase in the price to $440
What will this raise (+) or reduce (-) total revenue by? Give your answer in whole numbers.
The Competition and Markets Authority is a regulatory body in the UK. In 2017, the CMA found the proposed merger of Heineken and Punch Pubs in breach of its competition laws. Heineken and Punch Pubs have agreed
to divest in pubs in areas where they are the two dominant pub companies.
Which of the following are ways in which consumers might directly benefit from this decision?
Select ALL that apply.
Golden Crisp Cereals plans to build its new factory on the outskirts of Bimbleton, an affluent medium-sized town where its current headquarters is based. The area where they are planning to build the factory was
formerly a country park.
Of the following, which stakeholder would be most likely to protest against the construction of the new Golden Crisp Cereals factory?
Beth wants to take out an annuity in order to be able to leave more money to her children when she passes away. She has looked at three annuities with different payout rates.
Annuity A pays out £5340 each year over 14 years
Annuity B pays out £4900 each year over 9 years
Annuity C pays out £5445.64 each year over 20 years
The current interest rate is 8%.
Of these, which annuity would have the highest net present value and hence pay out more money for Beth over its lifetime?
TESTED 17 May 2024
