Online Access Free BA1 Practice Test

If in the short run a business raises the output of its product then

• A.average fixed cost will remain constant over the whole range of output
• B.average variable cost will fall over the whole range of output
• C.average total cost will fall until constant returns to scale achieved
• D.average total cost will initially fall and then rise as output is increased

Which of the following are examples of long run internal economies of scale?
i. Mass production using robot machine tool technology
ii. Obtaining lower prices when buying raw materials in bulk
iii. Long run technical change in the industry
iv. The emergence of specialized training institutions for the industry v. Lower borrowing costs for large firms vi. The spreading of fixed costs over a larger output

• A.(ii), (iii) and (v) only
• B.(i), (ii) and (v) only
• C.(i), (iv) and (vi) only
• D.(i), (ii) and (iii) only

Which of the following is an invisible import for a country?

• A.Expenditure in its shops by foreign diplomats based in the country
• B.The country's contribution to foreign aid
• C.Repayment of an IMF loan by the country's government
• D.A foreign company signing a contract guaranteeing to invest in a new factory in the country

All of the following are examples of how e-business can benefit a business organization except one. Which ONE is the exception?

• A.Reduced transport costs from internet buying
• B.Lower entry barriers by reducing the need for expensive premises
• C.Reduced transactions costs leading to low variable costs
• D.Cheaper procurement via on line search and ordering

Which THREE of the following constitute injections into the circular flow of income?

• A.Savings
• B.Government expenditure
• C.Taxation
• D.Investment
• E.Imports
• F.Exports