Which ONE of the following conditions would lead to instability over time in the incomes of producers of primary products?
The average price of recorded music CDs has been declining for several years. Which of the following changes in market conditions would NOT be a cause of this?
All of the following would tend to make the demand for a good highly price elastic except one. Which ONE is the exception?
Which of the following statements about public goods is correct?
Which of the following is NOT a characteristic of a pure public good?
The 'satisfying' model of business behavior states that business will aim to:
One of the features of an oligopoly market is that the pricing strategy of producers
If a manufacturing firm contributes to global warming as a byproduct of its production process, this is an example of
In a supply and demand diagram, other things remaining the same, an increase in production costs will normally shift:
Firms in competitive markets can earn only normal profit in the long run because:
If the demand curve for good A is negatively sloped, a fall in the price of a substitute good B results in
In a market economy the market mechanism can achieve all the following except one. Which is the exception?
Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?
A market is in equilibrium. If the government imposes a minimum price above the equilibrium price, there will be:
If a central bank adopted an expansionary monetary policy the effects would include A.
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.'
Why was the Global Banking Crisis of 2007 followed by a credit crunch of low lending?
Which of the following have been recommended in order to prevent a repeat of the 2008 financial crisis?
Whenever a government provides health care services free of charge
All of the following are sources of finance for business except which one?
Which of the following best describes the term 'National Debt'?
When central banks adopt a policy of 'quantitative easing' this means that they:
Which of the following describes a 'spot rate' in foreign currency dealing?
Lenders normally wish to offer their funds for the short term, but most borrowers prefer to borrow over the long term. Resolving this mismatch is known as:
What is described by the following definition 'the total accumulated amount the state owes to lenders in its own country and internationally'?
If a country were to join a currency union (for example, the European single currency, the Euro), its businesses would experience all of the following except which one?
All of the following were contributory causes of the banking crisis of 2008 (the 'credit crunch') except one. Which ONE is the exception?
A government can finance a budget deficit by:
i. increasing taxation rates.
ii. Reducing government expenditure.
iii. Selling long term government bonds.
iv. Issuing Treasury Bills.
v. Raising interest rates.
vi. Reducing transfer payments.
Which global institution is concerned with enforcing the GATT?
Which of the following best defines a fiscal policy?
All of the following are characteristics of a recession except which one?
All of the following are early indicators of a recovery from a recession except which one?
If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:
Which of the following would lead to an increase in a firm's share price?
Which ONE of the following is regarded as a general characteristic of an organization?
The existence of a natural rate of unemployment means that
Which ONE of the following is an External stakeholder in a state-owned energy provider?
The Phillips curve shows that the government
Which of the following best describes a project that has a negative Net Present Value?
Which global financial institution is responsible for making long term loans to assist developing countries to invest and develop?
Which ONE of the following would appear as a debit item on a country's balance of payments current account?
A country is a net oil exporter and the demand for oil overseas is price inelastic. A substantial increase in the world price of oil would tend to
A trade agreement that removes all import tariffs between member countries, sets up common external tariffs against non-members, but does not advance toward economic integration is called
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.
RubTech has decided to build a new rubber production facility just outside the semi-rural town of Pettisbury. The majority of workers at the plant are to be sourced from abroad.
Which of the following could potentially be negative externalities of the decision to build the production facility?
The interest rate at TrowBank is currently running at 7%. The number of customers borrowing to invest has fallen drastically.
Which of the following explains why this is the case?
Select ALL that apply.
Other things being equal, an increase in a country's balance of payments deficit on current account means that
Since its release. Bob Aker's 'Cooking to Go' has sold the following number of copies each Q1:
2X13:200
2X14:430
2X15:530
2X16:450
Using these figures and the equation, y (trend) = 500 + 20x, which of the following is the mean seasonal average of sales of Bob Aker's 'Cooking to Go' for Q1 over the last four years?
Calculate all the final and answer and all intermediate workings to 2 dp.
0.77
0.85
1.02
4.5
0.63
West Morton Rail has calculated that the number of passengers travelling on their railway increases during school holidays, while the inverse is true for most other railways in the country.
Which of the following is the most likely reason for this unusual correlation?
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?
The economy of Country V is initially in equilibrium at a level of national income and employment denoted by Y, at price level denoted by P If there is an increase in aggregate demand, indicate on the graph below the new equilibrium point in the economy.
TrowPlan Ltd. is planning on growing their business through expanding their real estate holdings. In order to do this, they have taken out a bank loan of £2 million. This loan is to be repaid by TrowPlan Ltd. over a period of
14 years with an interest rate of 10%. However, there are rumours of recession in the banking sector, and the economic uncertainty caused by Britain's vote to leave the EU continues to decrease the value of pound
sterling.
In these circumstances, which of these options would be the least suitable course of action for TrowPlan Ltd. to take?
Select ALL that apply.
The government has set a maximum house price due to a massive house price rise in the last decade. This is denoted by the line Q1Q2 on the graph.
Which of the following may occur in light of the introduction of the maximum house price as it appears on the graph?
Select ALL that apply.
VapNat, an e-cigarette store, has experienced a steep decline in sales over the past six months, despite the economy in general performing well.
Which of the following are most likely to have contributed to such a decline?
Select ALL that apply.
A regressive tax is defined as one where:
The share price of Quench Drinks has been steadily falling for several years despite steady sales and a slight market share increase over the last 5 years. They have been criticised for being full of sugar and not
capitalising on the health food trend.
Quench are starting to face pressure from their shareholders to push the share price back up.
Which of the following would be most likely to improve Quench's standing in the soft drinks market?
Select ALL that apply.
An estimation regression is developed to test the linear relationship between the size of student population at a university and monthly sales of a nearby bookshop The correlation coefficient is equal to 0.9.
Which of the following is also known as the International Bank for Reconstruction and Development?
The following ogive shows the cumulative frequency of the ages of a small sample of entrepreneurs.
Which THREE of the following statements are true?
For a typical business, which of the following is NOT a potential benefit of globalisation?
Which THREE of the following can be used to reduce the principal-agent problem in business organisations?
Which of the following is correct regarding data?
Data can be recorded as:
(1) numbers.
(2) symbols.
(3) raw facts.
industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production
The statement above is most closely describing an example of which of the following?
Based on a trade balance between Country A and Country B over a ten year period, the underlying trend of the trade balance is represent equation
-114.027 -1.47x
where x is the time period expressed in years.
Assuming an additive forecasting model, with a seasonal factor of 82 6, then the forecast for year 2016, in whole units is:
The use of hedging is to reduce or eliminate exposure to which of the following?
1. Credit risk
2. Economic risk
3. Transaction risk
4. Transition risk.
What does the term 'equity financing' mean?
Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country"?
Which of the following organisational arrangements is an example of a multinational corporation (MNC)?
What is the mam objective or the PESTEL framework?
Which THREE of the following are objectives of corporate governance?