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BA1 – Fundamentals of Business Economics

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Showing 13–15 of 20 questions

Question 13

All of the following statements about a firms total revenue curve are true except which ONE?

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    Because the price of a product falls as more is supplied to the market the curve is not a straight line
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    Price elasticity of demand for the product = 1 at the highest point of the curve
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    If price of the product rose the curve would pivot upwards
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    The curve would be a horizontal straight line if demand for the product were perfectly price elastic
Question 14

In the short run, which of the following would result from a depreciation of the country's exchange rate?

(i). Increased competitiveness of the country's exports

(ii). Increased quality competitiveness of the county's imports (iii). A worsening of the country's terms of trade

(iv). Increased energy and raw material costs for the country's manufacturing firms

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    (i) and (ii) only
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    (ii) and (iv) only
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    (iii) and (iv) only
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    (i), (iii) and (iv) only
Question 15

Which of the following statements about supply-side economics is correct?

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    Supply-side policies are part of aggregate demand management policies.
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    Fiscal policy cannot be used as a part of supply-side policy
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    Supply-side economists always reject the use of policy to expand demand
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    Supply-side policies are used to improve the economy's efficiency and competitiveness