These are ACCA F1 (BT/FBT) Business and Technology MCQs for Chapter; Micro-economic factors.

These MCQs are designed in a way that students could better understand the exam format and get used to practice online. This approach will reduce exam stress and enable students to prepare better.

We request the students, Not to solve the MCQs until they have finished the chapter.

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INFORMATION ABOUT THESE MCQs Test

Course: ACCA
Fundamental Level: Knowledge, FIA
Subject: Business And Technology
Paper: F1 – BT
Chapter: The macro-economic environment
Chapter Number: 4 of the Practice and Exam Kit; and 8 of the Study Text
Syllabus Area: A – The business organization, its stakeholders, and the external environment
Questions Type: MCQs
Exam Section: Section A

Number of the Questions

These MCQs Test consist of 25 Questions that covers the Chapter; Micro-economic factors of ACCA F1 (BT) Business and Technology Module.

Time

These MCQs have a timer. Students have to finish the Test within the given time period so Students can get used to finishing the Exam within the Time Deadline.
As in ACCA Exam, there are 1.8 minutes per mark. So each 2 marks question have 3.6 minutes to complete.
This Test includes some MCQs that worth 2 marks and some worth 1 Mark. We therefore giving an average time to complete the Test.
This Test has 25 questions, so Students have total 50 minutes to complete the Test.

Result

Students can see their result at the end of the test. Further, the correct and wrong questions. Moreover, the explanation of wrong questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seems to you correct/ or incorrect, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

Keywords

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101

F1 - Chapter 4 - Micro-economic factors

1 / 24

In a certain advanced industrialised country, the government has applied price controls over rents of both public and private rented accommodation for a number of years, and a serious problem of widespread homelessness has built up. Just recently, the rent price controls have been eased.

Which TWO of the following consequences should now occur?

In the longer term, an increase in new building work

An increase in homelessness

The provision of more rented accommodation

Fewer owner-occupied dwellings

2 / 24

Which of the following would cause the supply curve for a good to shift to the right (outwards from the origin)?

An increase in the demand for the good

A fall in production costs of the good

The imposition of a minimum price

A fall in the price of the good

3 / 24

ABC produces a variety of soft drink. It has two competitors but all three producers use product differentiation to distinguish themselves from each other.

What type of market is this?

Perfect competition

Monopoly

Oligopoly

Monopolistic competition

4 / 24

The income elasticity of demand for a product is high. This means that:

Sales will fall only slightly when incomes of households fall

The good is an inferior good

Sales will rise sharply when incomes of households rise

5 / 24

Using the point method, what is the price elasticity of demand of product X as price falls from its current price of $20 to $15?

Capture 1 F1 (BT) - Chapter 4 MCQ's (Micro-economic factors) - ACCA Business Students Platform

6 / 24

Which of the following is NOT a substitute for carpets?

Carpet underlay

Ceramic floor tiles

Wooden floorboard

7 / 24

Consumer surplus is:

The indirect tax consumers pay on a good or service

The excess between what consumers are prepared to pay for a good or service, and the prevailing market price

The indirect tax producers pay on a good or service

The marginal utility gained by consuming one more unit of a good or service

8 / 24

Which of the following would lead to a fall in the price of good Q which is a normal good?

A belief that the price of good Q is likely to double in the next 3 months

A fall in the level of household incomes generally

A rise in the price of good P, a substitute for good Q

A fall in the price of good T, a complement to good Q

9 / 24

When the price of a good is held above the equilibrium price, the result will be

Excess demand

A surplus of the good

A shortage of the good

10 / 24

Which combination of demand and supply curves would be appropriate for a firm attempting to increase its profits by increasing its market share?

Elastic demand, elastic supply

Inelastic demand, elastic supply

Inelastic demand, inelastic supply

Elastic demand, inelastic supply

11 / 24

If the price of coffee falls, which the following outcomes should be expected to occur?

A fall in the demand for tea

A fall in the demand for drinking cups

A fall in the quantity of coffee demanded

A rise in the price of tea

12 / 24

The supply curve of a firm operating in a competitive market is its

Average variable cost curve below the average revenue curve

Marginal cost curve above the average variable cost curve

Marginal cost curve above the average total cost curve

Average total cost curve beyond the point where the marginal cost curve cuts it from below

13 / 24

Which of the following is NOT a complement to cars?

Petrol

Holidays

Tyres

14 / 24

According to the theory of the firm, which of the following statements describes an oligopoly?

There is only one producer in the market

There are no barriers to entry into or exit from the market

There are many producers but they each use product differentiation to distinguish themselves from each other

There are four producers exerting considerable influence in the market

15 / 24

The demand for fashion goods is NOT influenced by:

Expectation of future price changes

Price

The distribution of income among households

Allocative inefficiency among producers

16 / 24

If the absolute value of the price elasticity of demand for dry white wine is greater than one, a decrease in the price of all wine would result in:

A less than proportional decrease in the quantity of dry white wine purchased

A less than proportional increase in the quantity of dry white wine purchased

A more than proportional increase in the quantity of dry white wine purchased

A more than proportional decrease in the quantity of dry white wine purchased

17 / 24

Which of the following would NOT lead directly to a shift in the demand curve for overseas holidays?

An advertising campaign by holiday tour operators

A rise in the price of overseas holidays

A rise in the price of domestic holidays

A fall in the disposable incomes of consumers

18 / 24

Consider the price and demand for flower vases. The price of cut flowers goes up sharply.

Which of the following should happen?

The demand curve for flower vases will shift to the right and their price will rise

The demand curve for flower vases will shift to the left and their price will go down

There will be a movement along the demand curve for flower vases and their price will go down

The demand curve for flower vases will shift to the left and their price will rise

19 / 24

Mr. Smith has a limited income which restricts the number of different goods he can buy.

Which of the following describes the position at which Mr Smith's utility from purchasing different goods is maximised?

Marginal utility from each good is 0

Marginal utility from each good is equal

Ratio of marginal utility to price is equal for each good

20 / 24

The summer demand for hotel accommodation in London comes mainly from foreign tourists. Demand for hotel rooms in London in summer could be reduced by a fall in the price or value of which of the following?

US dollars
Aeroplane tickets
Sterling

Item 1 only

Item 3 only

Items 2 and 3 only

Items 1 and 2 only

21 / 24

Consider the price and demand for tickets to travel by sea ferry. The price of travelling by hovercraft (a substitute form of travel) goes up.

Which of the following should happen?

The demand curve for sea ferry tickets will shift to the left, and their price will go down. More sea ferry tickets will be sold.

The demand curve for sea ferry tickets will shift to the right and their price will go up. Fewer sea ferry tickets will be sold.

The demand curve for sea ferry tickets will shift to the right and their price will go down. More sea ferry tickets will be sold.

The demand curve for sea ferry tickets will shift to the right, and their price will go up. More ferry tickets will be sold.

22 / 24

What is an inferior good?

A good for which the cross elasticity of demand with a substitute product is greater than 1

A good of such poor quality that demand for it is very weak

A good for which demand will fall as household income rises

23 / 24

In a free market economy, the price mechanism:

Allocates resources

Aids government control

Measures national wealth

24 / 24

A legal minimum price is set which is below the equilibrium price. What will be the impact of this?

Excess of supply over demand

Nothing

Excess of demand over supply

Your score is

F1 (BT) – Chapter 4 MCQ’s (Micro-economic factors) – ACCA