BMAL 590 BUSINESS FINANCE FINAL
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS 100% VERIFIED
⩥ Deflation refers to: Answer: a decrease in the overall price level.
⩥ Macroeconomics is the branch of economics that deals with: Answer:
the economy as a whole
⩥ The school of economic thought that argues that price and wage
rigidities do not provide the only reasoning for an active macroeconomic
policy framework is referred to as: Answer: Neo-Kenesians
⩥ The primary driver for the emergence of macroeconomics theory as
we know it today was the failure of: Answer: the classical model to
explain the prolonged existene of high unemployment during the great
depression.
⩥ The approach that uses monetary policy to stabilize the economy is
known as: Answer: fine tuning of demand
⩥ According to Keynesian theory, the level of unemployment is
determined by: Answer: the level of aggregate demand for goods and
services
, ⩥ Assume you are an author and your book is priced at $9.95. The
publisher expects to sell 5,000 copies at this price. Suppose the publisher
decides to offer the book at $8.95, the publisher can expect to sell:
Answer: more than 5,000 copies
⩥ At a price of $99.95, the manufacturer of a popular herbal supplement
is willing to produce 10,000 packed units of the supplement. At a price
of $149.95, it is likely that he manufacturer would be willing to produce:
Answer: more than 10,000 packed units
⩥ If ultrabook manufacturers are producing ultrabooks faster than
people want to buy them: Answer: there is an excess of supply and price
may be expected to decrease
⩥ Disposable income is that part of a household's income remaining
after deduction of: Answer: income tax
⩥ Total consumption divided by total income would give us: Answer:
the average propensity to consume
⩥ In which of the following situations would we be likely to observe an
increase in the equilibrium price and decrease in the equilibrium
quantity? Answer: If supply falls even as demand increases, and the fall
in supply is greater than the increase in demand.
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS 100% VERIFIED
⩥ Deflation refers to: Answer: a decrease in the overall price level.
⩥ Macroeconomics is the branch of economics that deals with: Answer:
the economy as a whole
⩥ The school of economic thought that argues that price and wage
rigidities do not provide the only reasoning for an active macroeconomic
policy framework is referred to as: Answer: Neo-Kenesians
⩥ The primary driver for the emergence of macroeconomics theory as
we know it today was the failure of: Answer: the classical model to
explain the prolonged existene of high unemployment during the great
depression.
⩥ The approach that uses monetary policy to stabilize the economy is
known as: Answer: fine tuning of demand
⩥ According to Keynesian theory, the level of unemployment is
determined by: Answer: the level of aggregate demand for goods and
services
, ⩥ Assume you are an author and your book is priced at $9.95. The
publisher expects to sell 5,000 copies at this price. Suppose the publisher
decides to offer the book at $8.95, the publisher can expect to sell:
Answer: more than 5,000 copies
⩥ At a price of $99.95, the manufacturer of a popular herbal supplement
is willing to produce 10,000 packed units of the supplement. At a price
of $149.95, it is likely that he manufacturer would be willing to produce:
Answer: more than 10,000 packed units
⩥ If ultrabook manufacturers are producing ultrabooks faster than
people want to buy them: Answer: there is an excess of supply and price
may be expected to decrease
⩥ Disposable income is that part of a household's income remaining
after deduction of: Answer: income tax
⩥ Total consumption divided by total income would give us: Answer:
the average propensity to consume
⩥ In which of the following situations would we be likely to observe an
increase in the equilibrium price and decrease in the equilibrium
quantity? Answer: If supply falls even as demand increases, and the fall
in supply is greater than the increase in demand.
