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BA1 - Fundamentals of Business Economics

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BA1 Questions and Answers

Question # 1

A trade agreement that removes all import tariffs between member countries, sets up common external tariffs against non-members, but does not advance toward economic integration is called


an economic union.


a customs union.


a free trade area.


a common market

Question # 2

Brian has 80 bonds with a total market value of £2400. The interest rate on these bonds is 2.34%.

Using these figures, which of the following is the running yield of each of Brian's bonds?









Question # 3

RubTech has decided to build a new rubber production facility just outside the semi-rural town of Pettisbury. The majority of workers at the plant are to be sourced from abroad.

Which of the following could potentially be negative externalities of the decision to build the production facility?


Production processes


Rood congestion


The decision to source workers from abroad


Antisocial behaviour


The high unemployment rate in the local area


The poor infrastructure in the local area

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