This is ACCA F1 (BT/FBT) Business and Technology multiple-choice questions (MCQs).

These multiple-choice questions (MCQs) are designed to help ACCA F1 students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have finished the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F1 (BT/FBT) exam.

INFORMATION ABOUT THESE MCQs Test

Course: ACCA
Fundamental Level: Knowledge, FIA
Subject: Business And Technology
Paper: F1 – BT/FBT
Chapter: The macro-economic environment
Chapter Number: 04 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

There are 24 Questions in this Online F1 MCQ Test that cover Chapter 4, The macro-economic environment of ACCA F1 (BT/FBT) Business and Technology Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F1 CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

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

Keywords

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126

F1 - Chapter 4 - Micro-economic factors

Course: ACCA (The Associations Of Chartered Certified Accountants)
Module: F1 - Business and Technology (BT/FBT)
Chapter: Micro-Economic Factors
Syllabus Area: (A) - The Business Organisation, Its Stakeholders, and The External Environment
Exam Section: A
Questions: Chapter 04 Questions
Number Of Questions: 24
Time Limit: No Time Limit
Result: You will able to see at the end of the quiz along with the Correct and Incorrect Answers.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those options that seem correct or incorrect to you as per the requirements of the question. (Wording: select all those that are correct.)
Dropdown: Select from the list provided.
Type: Type your answer in numbers as per the requirement of the question.

1 / 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 more 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

2 / 24

In a free market economy, the price mechanism:

Measures national wealth

Aids government control

Allocates resources

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?

Monopoly

Oligopoly

Monopolistic competition

Perfect competition

4 / 24

Consumer surplus is:

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

The indirect tax consumers pay on a good or service

5 / 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 left and their price will go down

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

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

6 / 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 1 and 2 only

Items 2 and 3 only

7 / 24

Which of the following is NOT a substitute for carpets?

Wooden floorboard

Ceramic floor tiles

Carpet underlay

8 / 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 for which demand will fall as household income rises

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

9 / 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 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 up. More ferry tickets will be sold.

10 / 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

Ratio of marginal utility to price is equal for each good

Marginal utility from each good is equal

11 / 24

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

Nothing

Excess of supply over demand

Excess of demand over supply

12 / 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

13 / 24

Which of the following is NOT a complement to cars?

Holidays

Petrol

Tyres

14 / 24

The demand for fashion goods is NOT influenced by:

The distribution of income among households

Expectation of future price changes

Price

Allocative inefficiency among producers

15 / 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?

16 / 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 the price of the good

A fall in production costs of the good

The imposition of a minimum price

17 / 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

18 / 24

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

A rise in the price of tea

A fall in the quantity of coffee demanded

A fall in the demand for drinking cups

A fall in the demand for tea

19 / 24

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

Inelastic demand, inelastic supply

Elastic demand, inelastic supply

Inelastic demand, elastic supply

Elastic demand, elastic supply

20 / 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 fall in the disposable incomes of consumers

A rise in the price of domestic holidays

21 / 24

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

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

A fall in the level of household incomes generally

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

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

22 / 24

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

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

Marginal cost curve above the average variable cost curve

Average variable cost curve below the average revenue curve

23 / 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

24 / 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

Fewer owner-occupied dwellings

The provision of more rented accommodation

Your score is

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INFORMATION ABOUT THESE MCQs Test

Number of the Questions

Time

Result

Types of Questions

Types of Questions

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:

In a free market economy, the price mechanism:

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?

Consumer surplus is:

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

Which of the following should happen?

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?

Which of the following is NOT a substitute for carpets?

What is an inferior good?

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?

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?

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

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

Which of the following is NOT a complement to cars?

The demand for fashion goods is NOT influenced by:

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?

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

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

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

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

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

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

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

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

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?

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