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


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.

All the questions are compulsory, so do not skip any.


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.


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.


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.

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F1 - Chapter 4 - Micro-economic factors

1 / 24

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

2 / 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?

3 / 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?

4 / 24

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

5 / 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:

6 / 24

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

7 / 24

The demand for fashion goods is NOT influenced by:

8 / 24

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

9 / 24

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

10 / 24

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

Which of the following should happen?

11 / 24

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

12 / 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?

  1. US dollars
  2. Aeroplane tickets
  3. Sterling

13 / 24

What is an inferior good?

14 / 24

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

15 / 24

In a free market economy, the price mechanism:

16 / 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?

17 / 24

Consumer surplus is:

18 / 24

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

19 / 24

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

20 / 24

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

21 / 24

Which of the following is NOT a substitute for carpets?

22 / 24

Which of the following is NOT a complement to cars?

23 / 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?

24 / 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


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