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Which of the following is the most likely policy response to an economic recession?

A.

Revaluation of the domestic currency

B.

Deflationary policy to prevent rising inflationary pressure

C.

Reduce aggregate demand by raising interest rates, taxation, and reducing public expenditure.

D.

Raise aggregate demand by lowering interest rates, reducing taxation and raising public expenditure

The government of Country Z imposes a tariff on all imports of coal from other countries Which THREE of the following are possible effects of this decision in Country?

A.

The cost of living will fall.

B.

Employment in the coal industry will increase

C.

The balance of payment will improve.

D.

Government's revenue will improve.

E.

Coal producers will adopt new technologies to improve efficiency

F.

More resources will be allocated to alternative energy sources

A research business compiles the following data for Country D over 8 years:

* Household expenditure, y (in millions of constant 20X6 dollars);

* The number of fixed broadband internet subscribers, x (in thousands).

Based on this information the following regression model is developed:

y = 332668 * 45.8x - 0 003x2

Which of the following statements is correct?

A.

The model is based on historical data, so it is of little use in making forecasts

B.

1 percent increase in the number of fixed broadband internet subscribers will lead to 0 3 percent increase in household final consumption expenditure.

C.

A non-linear relationship is suggested by the model between household final consumption expenditure and the number of fixed broadband internet subscribers.

D.

The model makes accurate forecasts on household final consumption expenditure in Country and therefore it should be widely applied to most countries and regions.

Complete the table inputting the relevant effect for each of the scenarios listed.

A magazine currently has a circulation of 500,000 copies per year at a price of $5 per copy Following a market survey it has been suggested that the price of each copy should be reduced to $4 50. It is expected this will lead to an increase in circulation of 25.000 copies per year.

What is the price elasticity of demand of the magazine?

Company GHI wishes to develop a linear model for forecasting tractor sales based on the number of sales people it employs. In the model, tractor sales will be the dependent variable and the number of sales people the independent variable

The company has collected sales data from each of its branches over the past year which has been reported below:

The following ogive shows the cumulative frequency of the ages of a small sample of entrepreneurs.

Which THREE of the following statements are true?

A.

Four entrepreneurs were aged between 30 and 40

B.

The sample included 10 entrepreneurs

C.

The sample did not include any entrepreneurs older than 65.

D.

Two entrepreneurs were aged between 40 and 50

E.

The sample did not include any entrepreneurs younger than 20

F.

Most entrepreneurs were younger than 40.

Futures are like forwards in that:

A.

futures are a binding contract.

B.

futures can be traded on future exchanges.

C.

futures are standandised contracts for standardised amounts.

D.

futures always cover the exact foreign currency exposure.

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

A manufacturing company is considering a new investment project.

Which TWO of the following would reduce the net present value of the investment to the business?

A.

A rise in the scrap value of the project at the end of its life.

B.

A reduction in the expected level of future sales.

C.

A rise in interest rates.

D.

A fall in the initial capital cost of the project

E.

An expected fall in the future price of components used by the business