Free Doctor of Business Administration Questions and Answers

Question 1

Which of the following increases the quantity of money?

Accepted Answer

Raise Interest Rates

Answer

Raising interest rates can attract foreign investors seeking higher returns on their capital. This influx of foreign investment leads to an increase in foreign currency entering the domestic economy. When this foreign currency is converted into the local currency and deposited in banks, it can contribute to an expansion of the overall money supply within the country.

Question 2

The __ policy modifies ___ and ___ levels to regulate the economy.

Accepted Answer

Fiscal, taxation, spending

Answer

Fiscal policy refers to the government's use of spending and taxation to influence the economy. By adjusting levels of government spending and taxation, the government can stimulate or slow down economic activity, manage inflation, and address unemployment. This directly contrasts with monetary policy, which primarily involves managing interest rates and the money supply.

Question 3

A market setup where a small number of enterprises produce the majority or the entire output.

Accepted Answer

Oligopoly

Answer

An oligopoly is a market structure characterized by a small number of large firms that dominate the market. These firms are interdependent, meaning the actions of one firm significantly impact the others. This differs from a monopoly (one firm), monopolistic competition (many firms with differentiated products), and perfect competition (many firms with identical products).

Question 4

Demand for ____ increases as the price rises.

Accepted Answer

Falls

Answer

According to the law of demand, for most goods and services, as the price of an item increases, the quantity demanded by consumers will decrease. This inverse relationship means that consumers typically buy less of a product when its price rises. Therefore, for most goods, demand 'Falls' as the price rises.

Question 5

A(n) decrease in supply results from a price rise.

Accepted Answer

Lower

Answer

According to the law of supply, a decrease in the price of a good or service typically leads to a lower quantity supplied by producers. This is because a lower price makes production less profitable, discouraging firms from producing as much. Therefore, a 'Lower' quantity supplied results from a price fall.

DBA - Doctor of Business Administration Practice Test

DBA - Doctor of Business Administration Practice Test

Free Doctor of Business Administration Questions and Answers