Which of the following will NOT affect the price elasticity of supply?
A. The time period considered.
B. Production costs.
C. The level of stocks.
D. Proportion of income spent.
Quantitative easing, the purchase of government or private securities by the central banks from investors, is an example of:
A. contractionary monetary policy.
B. contractionary fiscal policy.
C. expansionary fiscal policy.
D. expansionary monetary policy.
A commercial airline uses its database to develop the following regression model to predict the cost of a flight Y (in dollars) by number of passengers:
Y = 1,570 + 40.7x
Which of the following statements is correct in relation to the airline?
A. The cost of a flight will increase by $40.7 when an additional passenger is added to the flight.
B. The regression model makes accurate predictions for this commercial airline, therefore it will provide good forecasts for other commercial airlines.
C. The positive intercept in the model indicates a positive relationship between the cost of a flight and the number of passengers.
D. If each pair of data points is plotted on a graph with Y on the vertical axis and X on the horizontal axis, there will be a downward sloping line.
Which of the following statements defines a diseconomy of scale?
A. A reduction in the unit average cost caused by increasing the scale of production in the long run.
B. An increase in the unit average cost caused by increasing the scale of production in the long run.
C. An increase in the unit average cost caused by decreasing the scale of production in the long run.
D. A reduction in the unit average cost caused by decreasing the scale of production in the long run.
Which of the following organizational arrangements is an example of a multinational corporation (MNC)?
A. An insurance company based in Country E opens a sales office in Country F in order to service the local market.
B. A music production company based in Country C signs a contract with an artist's management company based in Country D.
C. A retailer based in Country G uses an online retail platform in order to sell goods to customers in Country H.
D. A chain of restaurants based in Country signs a franchise agreement with a company that intends to open restaurants in Country A.
For a typical business, which of the following is NOT a potential benefit of globalisation?
A. Lower cost sites for the location of production.
B. Simultaneously improved terms of trade for all countries.
C. Wider sources of supply for inputs.
D. Larger markets for outputs.
The following table shows the profits of a business and an index of the general price level for 4 years.
How does the level of real (inflation adjusted) profits in 20X4 compare to those of 20X1?
A. + $18m
B. + $12.5m
C. + $3m
D. + $0.6m
Which THREE of the following constitute injections into the circular flow of income? (Choose three.)
A. Savings
B. Exports
C. Government expenditure
D. Investment
E. Imports
F. Taxation
Futures are like forwards in that:
A. futures are a binding contract.
B. futures can be traded on future exchanges.
C. futures are standardized contracts for standardized amounts.
D. futures always cover the exact foreign currency exposure.
FILL BLANK
A business analyst has computed a trend regression for the sales of company X. The following table reports the ratios between the actual quarterly sales of company X and the calculated trend, for a period of four years.
What is the seasonal component in the fourth quarter? Give your answer to three decimal places.
A. 0.563
