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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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

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

A rise in the price of overseas holidays

A rise in the price of domestic holidays

A fall in the disposable incomes of consumers

An advertising campaign by holiday tour operators

2 / 24

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

A shortage of the good

A surplus of the good

Excess demand

3 / 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?

4 / 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?

Perfect competition

Monopoly

Monopolistic competition

Oligopoly

5 / 24

What is an inferior good?

A good for which demand will fall as household income rises

A good for which the cross elasticity of demand with a substitute product is greater than 1

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

6 / 24

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

Which of the following should happen?

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 go down

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

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

7 / 24

Consumer surplus is:

The indirect tax producers pay on a good or service

The indirect tax consumers pay on a good or service

The excess between what consumers are prepared to pay for a good or service, and the prevailing market price

The marginal utility gained by consuming one more unit of a good or service

8 / 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 tea

A fall in the demand for drinking cups

9 / 24

Which of the following is NOT a substitute for carpets?

Carpet underlay

Wooden floorboard

Ceramic floor tiles

10 / 24

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

Average total cost curve beyond the point where the marginal cost curve cuts it from below

Marginal cost curve above the average total cost curve

Average variable cost curve below the average revenue curve

Marginal cost curve above the average variable cost curve

11 / 24

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

Sales will rise sharply when incomes of households rise

The good is an inferior good

Sales will fall only slightly when incomes of households fall

12 / 24

In a free market economy, the price mechanism:

Allocates resources

Aids government control

Measures national wealth

13 / 24

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

There are no barriers to entry into or exit from the market

There are four producers exerting considerable influence in the market

There are many producers but they each use product differentiation to distinguish themselves from each other

There is only one producer in the market

14 / 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

Marginal utility from each good is equal

Ratio of marginal utility to price is equal for each good

15 / 24

Which of the following is NOT a complement to cars?

Petrol

Tyres

Holidays

16 / 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

Items 2 and 3 only

Items 1 and 2 only

Item 1 only

Item 3 only

17 / 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 level of household incomes generally

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

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

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

18 / 24

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

Elastic demand, elastic supply

Inelastic demand, inelastic supply

Inelastic demand, elastic supply

Elastic demand, inelastic supply

19 / 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 more than proportional increase 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 less than proportional decrease in the quantity of dry white wine purchased

20 / 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?

An increase in homelessness

The provision of more rented accommodation

Fewer owner-occupied dwellings

In the longer term, an increase in new building work

21 / 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 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.

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.

22 / 24

The demand for fashion goods is NOT influenced by:

Price

Expectation of future price changes

Allocative inefficiency among producers

The distribution of income among households

23 / 24

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

The imposition of a minimum price

An increase in the demand for the good

A fall in the price of the good

A fall in production costs of the good

24 / 24

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

Nothing

Excess of demand over supply

Excess of supply over demand

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INFORMATION ABOUT THESE MCQs Test

Number of the Questions

Time

Result

Types of Questions

Types of Questions

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

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

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?

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?

What is an inferior good?

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

Which of the following should happen?

Consumer surplus is:

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

Which of the following is NOT a substitute for carpets?

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

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

In a free market economy, the price mechanism:

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

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?

Which of the following is NOT a complement to cars?

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

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

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 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?

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 for fashion goods is NOT influenced by:

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

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

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