Online Access Free BA1 Exam Questions

Which of the following is an example of regulation as a form of government intervention in the economy?

• A.The government encouraging the General Medical Council to discipline doctors judged to be professionally negligent
• B.The government announcing the abolition of rules which restrict the number of commercial radio stations allowed by law to operate
• C.The government requiring that seat belts are fitted in all coaches and regularly tested
• D.The government selling a state-owned industry such as Air Traffic Control to private ownership

If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:

• A.a shift in the aggregate demand curve to the left, a fall in output and employment and a fall in the price level
• B.a shift in the aggregate demand curve to the left, a fall in output and employment and a rise in the price level
• C.a shift in the aggregate demand curve to the right, a fall in output and employment and a rise in the price level
• D.a shift in the aggregate demand curve to the right, a rise in output and employment and a rise in the price level

Which ONE of the following is NOT a symptom of the principal-agent problem in company XYZ?

• A.The pay of the directors of XYZ is not related to the company's financial performance
• B.XYZ's Board conceals information about losses from shareholders
• C.The family of the Chief Executive of XYZ use the company jet for shopping trips
• D.XYZ loses money following a risky investment in a new line of business

One of the features of an oligopoly market is that the pricing strategy of producers

• A.is constrained by the absence of barriers to entry into the industry
• B.is largely determined by government competition rules
• C.is conditioned by the expected reaction of rival producers
• D.tends to ignore expectations about consumer reactions

The managing director of Polly's, a department store, has found that ten of its stores located in the south east of England have seen a significant fall in profit margin.
Which of the following is most likely to be the cause of this?

• A.An increase in rent for the premises in which the store is located
• B.A decrease in rent for the premises in which the store is located
• C.A decrease in sales at these stores
• D.An increase in footfall at these stores