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Fundamentals of Business Economics

Last Update Oct 31, 2025
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Fundamentals of Business Economics Questions and Answers

Questions 1

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

Options:

A.

Demographic statistics published in a census

B.

The l{ addresses of computers in these areas

C.

The level of youth unemployment as recorded by the government

D.

The prominence of other brands focused on young people in the area

Questions 2

MakeHay are struggling to co-ordinate their different departments so that deadlines are hit. Two managers suggest different ideas to solve this issue.

Manager Smith suggests MakeHay open a new office who is responsible for co-ordinating the different departments, and would also have their own production targets.

Manager Jones suggests that opening another office would increase production, and so ensure deadlines are hit.

Why is neither manager correct?

Options:

A.

Opening a new office could lead to delays in messages being communicated between different departments

B.

Opening a new office is not viable for the company at its current size

C.

Opening a new office would be too expensive for the company at present

D.

Opening a new office would guarantee targets are met between departments

Questions 3

Governments provide public goods, such as street lighting, because

Options:

A.

private business providers would exploit consumers and make excess profits

B.

it would be an unprofitable activity for private business because of the free-rider problem

C.

governments are more efficient producers of such goods

D.

there are significant external costs in the production process

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