Economics and Globalisation
Undergraduate Framework Examination
Module Identify: Economics and Globalisation
Module Code: BMA4002 Stage: four
Day and Date: 22nd April 22 to 24th April 9am
Begin time: 9.00 a.m. Period: 48 hours
Directions to candidates:
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• Write your solutions in a solution sheet and submit simply the reply sheet to
Turnitin
A number of alternative Questions (2 marks every; 100 marks in complete)
Question Assignment A B c D E F
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Your solutions:
Clearly place a cross (X) within the field equivalent to your reply. In case your
choice is unclear the Question Assignment is not going to be marked. There is just one
reply per Question Assignment.
Cross one field per Question Assignment solely
Select the one different that finest completes the assertion or solutions the
Question Assignment:
1) Should you personal a constructing and you determine to utilize that constructing by
opening a restaurant
A) there aren’t any irretrievable prices concerned on this choice.
B) there isn’t any alternative price of utilizing this constructing for a restaurant as a result of
you personal it.
C) there is a chance price of utilizing this constructing for a restaurant as a result of it
may have been utilized in different methods.
D) the one price related to this choice is the worth you paid for the constructing
2). Which of the next is NOT a part of the chance price of attending
college?
A) The tutoring charges that you simply or your authorities pays.
B) The choice makes use of of the time you spend learning.
C) The revenue that you would have earned in case you didn’t attend college.
D) The price of the meals that you simply devour while you’re attending college.
three). When a rise within the value of excellent A causes a rise in demand for
good B, the products are
A) regular. B) enhances. C) inferior. D) substitutes.
four) Which of the next would possibly shift the demand curve for butter to the proper?
A) A lower within the value of margarine, a substitute
B) A lower within the value of butter
C) A rise in revenue
D) A rise within the value of bread, a complement
5) Expectations about value modifications will have an effect on
A) each the demand and provide curves. B) the availability curve solely.
C) the demand curve solely. D) neither curve.
6) A motion upward alongside the demand curve to the left might be attributable to
A) an increase in inflation. B) a fall within the value of substitutes.
C) an increase in revenue. D) a lower in provide.
7) Which of the next will trigger a shift in a provide curve?
A) A change in hourly wage prices.
B) A change within the profitability of different merchandise.
C) A rise within the means/productiveness of the companies workforce.
D) All the above
eight) Which one of many following appropriately describes how value changes
eradicate a surplus?
A) As the worth rises, the amount demanded will improve whereas the amount
provided will lower.
B) As the worth rises, the amount demanded will lower whereas the amount
provided will improve.
C) As the worth falls, the amount demanded will improve whereas the amount
provided will lower.
D) As the worth falls, the amount demanded will lower whereas the amount
provided will improve.
9) The next desk exhibits the demand and provide schedules for good X.
Worth (£) 1 2 three four 5 6 7
Amount demanded 120 100 80 60 40 20 zero
Amount provided zero 20 40 60 80 100 120
Assume that provide will increase by 40 items in any respect costs. What would be the impact
on equilibrium value?
A) Fall by £1 B) Rise by £1 C) Rise by £2 D) Fall by £2
10) Suppose that it’s noticed that the worth of wheat falls and that the amount
offered additionally falls. From this we will deduce
A) that the availability curve has shifted to the proper, however we can not deduce whether or not
or not the demand curve has shifted.
B) that the availability curve has shifted to the left, however we can not deduce whether or not or
not the demand curve has shifted.
C) that the demand curve has shifted to the proper, however we can not deduce whether or not
or not the availability curve has shifted.
D) that the demand curve has shifted to the left, however we can not deduce whether or not
or not the availability curve has shifted.
11) The worth of apples falls by 5% and amount demanded will increase by 6%.
Because of this the demand for apples is
A) completely inelastic. B) elastic.
C) completely elastic. D) inelastic
12) If the demand for oranges is unitarily elastic, the worth elasticity of demand
for oranges is:
A) -100. B) -1. C) 1. D) zero.
13) The ABC Pc Firm needs to extend the amount of computer systems
it sells by 5%. If the worth elasticity of demand is -2.5 the corporate should
A) improve value by zero.5%. B) lower value by zero.5%.
C) improve value by 2.zero%. D) lower value by 2.zero%.
14) The bus fare charged by the native bus firm is £5 through the morning
rush hour, however solely £three.50 after the push hour. This may be defined by the actual fact
that the demand for bus rides through the morning rush hour is ________; however
after the push hour the demand for bus rides is ________.
A) much less elastic, extra elastic B) extra elastic, much less elastic
C) unitarily elastic, inelastic D) completely elastic, completely inelastic
15) Worth and complete income are inversely associated when demand is
A) inelastic. B) completely inelastic.
C) unitarily elastic. D) elastic
16) Suppose a rise of 10% within the value of steak reduces the consumption
of steak by 30%. Such a value rise will induce households to spend
A) extra on merchandise which might be complementary with steak.
B) much less of their revenue on steak.
C) extra of their revenue on steak.
D) the identical quantity on steak as earlier than
17) The ABC Pc Firm spends some huge cash on promoting
designed to persuade you that its private computer systems are superior to all different
private computer systems. If the ABC Firm is profitable
A) the demand for ABC private computer systems will turn out to be much less value elastic however
the demand for different companies’ private computer systems will turn out to be extra value elastic.
B) the demand for ABC private computer systems and the demand for different companies’
private computer systems will turn out to be extra value elastic.
C) the demand for ABC private computer systems will turn out to be extra value elastic however
the demand for different companies’ private computer systems will turn out to be much less value elastic.
D) the demand for ABC private computer systems and the demand for different companies’
private computer systems will turn out to be much less value elastic.
18) Assume that the revenue elasticity of demand for bread is zero.2. A 5% improve
in revenue will trigger
A) a 1% improve within the demand for bread. B) a 25% lower within the demand
for bread.
C) a 25% improve within the demand for bread. D) a 10% improve within the demand
for bread.
19) If the cross-price elasticity of demand between fish and hen is 2, then a
2% improve within the value of fish will end in
A) a four% improve within the amount of hen demanded.
B) a 1% improve within the amount of hen demanded.
C) a 10% improve within the amount of hen demanded.
D) 20% lower within the amount of hen demanded.
20) Which of the next defines the worth elasticity of provide?
A) The responsiveness of amount provided to a change in value
B) The responsiveness of provide to a change in demand
C) The responsiveness of amount demanded to a change in provide
D) The responsiveness of amount provided to a change in revenue
21) Kathy eats 5 slices of pizza on a Saturday night time however admits every slice of
pizza doesn’t style pretty much as good because the earlier one. This means that for Kathy
A) the marginal utility of a slice of pizza is adverse.
B) the marginal utility of a slice of pizza is optimistic however lowering.
C) the full utility of slices of pizza is growing by bigger and bigger
increments.
D) the full utility of slices of pizza is declining
22) Insurance coverage corporations can decrease their dangers by
A) utilizing the legislation of huge numbers to make the variety of claims extra
predictable.
B) diversifying throughout insurance coverage merchandise.
C) granting massive numbers of impartial danger insurance policies.
D) all the above
23) Which of the next isn’t an instance of both ethical hazard or adversarial
choice?
A) A person not declaring their worst traits on a job software
kind.
B) A pupil not being as cautious with their spending ranges when the scholars
dad and mom are paying his/her bank card invoice.
C) A enterprise proprietor/supervisor doing fewer hours work than his staff.
D) A store employee doing much less work of the times when the boss isn’t within the store
24) Which of the next explains why an excessive amount of alternative generally is a unhealthy factor?
A) Customers are irrational and so will make inefficient selections.
B) Corporations have to provide too many merchandise and this reduces the standard of
them.
C) Customers are inspired to purchase an excessive amount of which may result in rising
ranges of debt.
D) An excessive amount of alternative can hinder choice making and cut back utility
25) Which of the next is an accurate assertion concerning the relationship between
common price (AC) and marginal price (MC)?
A) If AC = MC, then complete price is at a most.
B) If TC is declining then AC is adverse.
C) If AC exceeds MC, then AC is falling.
D) If AC is at a minimal, then MC can be
26) Assume that the wool business is a wonderfully aggressive business. Why is it
tough for a wool producer to make extra income?
A) The idea of free entry into the wool business
B) The truth that the demand curve dealing with every wool producer is completely elastic
C) The truth that wool producers are ‘value takers’
D) The idea that wool producers within the business don’t ‘differentiate’
their merchandise
27) The next desk exhibits prices and income schedules for a agency.
Amount AC (£) MC (£) AR (£) MR (£)
100 three.20 three.00 three.00 three.00
200 2.80 2.80 three.00 three.00
300 2.84 three.00 three.00 three.00
400 three.00 three.60 three.00 three.00
500 four.00 6.00 three.00 three.00
600 6.00 9.00 three.00 three.00
How a lot complete revenue will the agency make on the profit-maximising stage of
output?
A) £40 B) £zero C) £48 D) £16
28) If a rustic has adverse outward FDI, because of this
A) gross sales of present investments overseas exceed new investments overseas.
B) outward funding as a proportion of inward funding is falling.
C) gross sales of overseas property within the nation exceed gross sales of the nation’s property
overseas.
D) inward FDI exceeds outward FDI.
29) A vertically built-in multinational is one which
A) produces completely different merchandise in numerous nations.
B) produces the identical product in additional then one nation.
C) one which exports greater than 50% of output.
D) produces numerous phases of manufacturing in numerous nations
30) Multinational firms (MNCs) participating in technological switch could
result in beneficial properties elsewhere within the economic system as
A) different corporations within the host county could attempt to copy the strategies.
B) the MNC takes market share from native corporations.
C) employees skilled by the MNC transfer to different elements of the economic system.
D) A and C
31) Encouraging FDI could also be a dangerous long-term growth technique for a
nation as MNCs are sometimes
A) promoting uncommon merchandise.
B) footloose.
C) involved extra with exporting than producing for the home market.
D) promoting merchandise with low revenue margins.
32) The product life cycle mannequin helps clarify why
A) could have interaction in FDI on the launch stage.
B) companies all the time find the place labour is most cost-effective per hour.
C) companies could first export and then have interaction in FDI.
D) all the above
33) If the full expenditure of the UK public sector is £650bn and revenues to
the UK public sector are £325bn in a given 12 months, then
A) the UK could have a PSNB of -£325bn.
B) the UK authorities could have a price range deficit of £325bn.
C) the UK could have a PSNB of £325bn.
D) the UK common authorities debt will rise by £325bn
34) If the federal government needs to cut back unemployment by influencing the extent
of exercise within the economic system, authorities spending might be ________ and/or
taxes might be ________.
A) decreased, elevated B) elevated, decreased
C) elevated, elevated D) decreased, decreased
35) Fiscal stance refers to
A) a authorities that’s operating a price range deficit.
B) whether or not a authorities is pursuing an expansionary or contractionary fiscal
coverage.
C) a authorities that takes a tricky stance with regards to operating the
nation’s funds.
D) a authorities that prefers the usage of fiscal to financial coverage for demand
administration.
36) If the economic system have been booming, we’d anticipate
A) authorities expenditure to be low and tax revenues to be low in order that the
authorities may repay the central authorities debt.
B) authorities expenditure to be low and tax revenues to be excessive in order that the
public sector is perhaps operating a surplus.
C) authorities expenditure to be excessive and tax revenues to be low inflicting a
massive price range deficit.
D) not one of the above
37) A central financial institution wishing to function a tighter financial coverage would possibly
A) elevate rates of interest and use open-market operations in order to cut back the cash
provide.
B) cut back rates of interest however use open-market operations in order to cut back the
cash provide.
C) decrease rates of interest to encourage spending and discourage saving.
D) promote funding in different nations by home companies.
38) Which of the next is NOT an undesirable side-effect of discretionary
fiscal coverage?
A) Tax modifications could change expectations.
B) Tax modifications may have disincentive results.
C) Cuts in spending could hurt the poor.
D) Elevating taxes raises costs
39) Which of the next is an instance of a straightforward/relaxed financial coverage?
A) A rise within the liquidity ratio
B) A lower within the repo fee
C) The central financial institution promoting authorities securities within the open market
D) A lower within the tax fee
40) The economic system’s unemployment fee is three% and the inflation fee is 15%. The
more than likely coverage for the central financial institution to pursue could be to
A) improve rates of interest to attempt to cut back the inflation fee.
B) do nothing as a result of the unemployment fee is so low.
C) cut back rates of interest to attempt to cut back the unemployment fee.
D) improve rates of interest as long as unemployment remained beneath a stage
thought of politically acceptable.
41) What is supposed by ‘quantitative easing’?
A) An easing of restrictions on authorities borrowing
B) A discount in Financial institution Charge
C) A rise within the amount of presidency bonds being offered by the central
financial institution
D) A rise in cash provide caused by the acquisition of property by the
central financial institution
42) An essential instrument of supply-side coverage has been
A) the imposition of wage and value controls. B) the financial system.
C) rate of interest coverage. D) the tax system
43) A rise within the stage of profit paid to an unemployed individual would
A) make leisure much less engaging than work.
B) don’t have any have an effect on on the price of job search.
C) make it dearer for the person to spend time in job search.
D) cut back the chance price of job seek for the person
44) If two nations, A and B, can produce the next quantities of two items
X and Y for a given quantity of assets:
Good X Good Y
Nation A 10 7
Nation B 12 10
Assuming there aren’t any transport prices in commerce:
A) Nation A has a comparative benefit within the manufacturing of excellent Y and will
export good Y.
B) Nation A has a comparative benefit within the manufacturing of excellent X and will
import good Y.
C) Nation B has a comparative benefit within the manufacturing of excellent Y and will
import good Y.
D) Nation A has a comparative benefit within the manufacturing of excellent X and will
export good Y.
45) If two nations have interaction in commerce with each other, what determines which
nation will acquire probably the most from commerce?
A) The phrases of commerce B) Absolute benefit
C) The alternate fee D) Comparative benefit
46) A tariff imposed on imported sneakers will trigger the home value of sneakers
to ________ and the home manufacturing of sneakers to ________.
A) improve, lower B) lower, lower
C) lower, improve D) improve, improve
47) Assume that earlier than it joined the EU, the UK customers needed to pay a tariff
on imported Fiat vehicles. The UK’s most important small automobile on the time was the mini. Italy
had a comparative benefit within the manufacturing of small vehicles. On becoming a member of the
EU, the UK automobile market would have seen
A) commerce creation. B) commerce diversion. C) commerce discount. D) commerce
division
48) Which have been seen to be doable financial benefits of Brexit by these
who argued for Brexit?
A) Freer commerce with EU member states
B) A extra versatile immigration coverage
C) The flexibility to strike extra advantageous commerce offers with non-EU nations
than earlier than.
D) A and C
49) Which one of many following gadgets would NOT seem within the monetary
account of the stability of funds?
A) Earnings from property overseas.
B) The acquisition of UK property by non-UK residents.
C) Portfolio funding.
D) Overseas direct funding within the UK.
E) The sale of foreign currency from the reserves
50) If an alternate fee falls, and is anticipated proceed falling, there will probably be
________ hypothesis.
A) destabilising B) stabilising C) no D) impartial
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Globalization and Economics
Examination of the Undergraduate Framework
Economics and Globalisation is the identify of the module.
BMA4002 Module Stage: four
Date and time: April 22nd to April 24th, 9 a.m.
Time of begin: 9.00 a.m.
48-hour period
Candidate directions:
.
• Document your responses on a solution sheet and submit solely the reply sheet to
Turnitin
Questions with A number of Alternative Solutions (2 marks every; 100 marks in complete)
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