Business Environment And International Business - Practice Test

[#216] In circular flow of economy, consider the following statements.

(A) Injections is any spending which is additional to the circular flow that increases the level of income. The examples are business expenditure, government expenditure and exports

(B) Withdrawal is some income which is not passed on as an expenditure in the circular flow. It decreases the level of income in circular flow. The examples are savings, taxation and imports

(C) For equilibrium in circular flow, planned injection should be equal to withdrawal

(D) All of the above are true

Correct Answer

(D) All of the above are true

[#217] Business environment is more descriptive and . . . . . . . .

(A) simple

(B) large

(C) complex

(D) None of these

Correct Answer

(C) complex

[#218] The trade theory of absolute advantage was developed by

(A) Haberler

(B) David Ricardo

(C) Adam Smith

(D) Alfred Marshall

Correct Answer

(C) Adam Smith

[#219] Globalisation can create problems for business because

(A) it increases vulnerability to political risk and uncertainty when operating abroad

(B) it means that they can increase prices

(C) it can result in more competition

(D) All of the above

Correct Answer

(A) it increases vulnerability to political risk and uncertainty when operating abroad

[#220] Maximization of which of the following should be the main aim of the private organization?

(A) Profitability

(B) Profit

(C) Social welfare

(D) Employee welfare

Correct Answer

(A) Profitability

Business Environment And International Business - Study Mode

[#216] In circular flow of economy, consider the following statements.

Correct Answer

[#217] Business environment is more descriptive and . . . . . . . .

Correct Answer

[#218] The trade theory of absolute advantage was developed by

Correct Answer

[#219] Globalisation can create problems for business because

Correct Answer

[#220] Maximization of which of the following should be the main aim of the private organization?

Correct Answer