Question 1

A typical supply curve of a good shows:

Options :

A : The quantities of the good firms actually sell at different possible prices

B : The quantities of the good firms are prepared to supply at different possible prices

C : Different possible equilibrium prices

D : Quantity supplied varying inversely with price

Answer: B

Question 2

A market for a normal good is in equilibrium. What will happen in this market if there was an increase in consumer incomes?

Options :

A : The demand curve would shift to the right, the equilibrium price would rise and there would be an increase in supply

B : The demand curve would shift to the left, the equilibrium price would fall and there would be a contraction in supply

C : The demand curve would shift to the right, the equilibrium price would rise and there would be an extension in supply

D : The demand curve would shift to the left, the price would fall and there would be a decrease in supply

Answer: C

Question 3

All of the following are examples of not-for-profit organizations except one. Which ONE is the exception?

Options :

A : Mutual savings societies

B : Charities

C : Partnerships

D : Trade Unions

Answer: C

Question 4

Based on the past twenty months, an event decorating company develops a trend equation for forecasting sales revenue (y) where y = 4.38 + 1.32x.

If month 21 has a seasonal factor of times 1.07, then what is the forecast for the month, using a multiplicative model? Give your answer to two decima places.

Options :

A : 34.34

B : 54.54

C : 44.44

D : 64.64

Answer: A

Question 5

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.

Options :

A : (i), (ii) and (iv) only

B : (i), (iii) and (iv) only

C : (ii), (v) and (vi) only

D : (iv), (v) and (vi) only

Answer: B

Confidently Practice Online with Free CIMAPRA17-BA1-1-ENG Exam Cram

Buying Options: