Section A
Q11 mark
Which one of the following best describes the acquisition of the Kansas City Southern railway by Canadian National Railway?
- AConglomerate integration
- BForward vertical integration
- CHorizontal integration
- DBackward vertical integration
Show the answer
The answer is C.
TopicBusiness growth, mergers and market structure
Q21 mark
Which one of the following would be the textile manufacturer's marginal revenue if the price was reduced from $16 to $14? You may want to use the final column for your workings.
- A$0
- B$4
- C$12
- D$14
Show the answer
The answer is B.
TopicRevenues, costs and profits
Q31 mark
Ceteris paribus, which one of the following is the most likely outcome in the long-run?
- AThe agricultural business will make normal profit
- BThe agricultural business will shut down
- CThe agricultural business will increase its output
- DThe agricultural business will increase its price
Show the answer
The answer is A.
TopicRevenues, costs and profits
Q41 mark
Which one of the following is the most likely outcome of Google operating at its profit maximising output?
- AAverage revenue is equal to marginal cost
- BMarginal revenue is greater than average revenue
- CMarginal revenue is equal to total cost
- DAverage revenue is greater than average cost
Show the answer
The answer is D.
TopicRevenues, costs and profits
Q51 mark
Which one of the following factors is the most likely explanation of this elasticity of demand for construction workers?
- AThe construction workers cannot be easily replaced by capital
- BThe costs of employing construction workers are low
- CThe productivity of construction workers is low
- DThe majority of construction workers are members of trade unions
Show the answer
The answer is A.
TopicThe labour market
Q61 mark
Which one of the following best describes this pricing strategy?
- APredatory pricing
- BLimit pricing
- CPrice leadership
- DShort-run profit maximisation
Show the answer
The answer is B.
TopicPrice discrimination and contestable markets
Section B
Case study
Size of businesses and labour markets in Bangladesh
Extracts: Figure 1: from: · Extract A: from: · Extract B: from:
In the extracts: SME Foundation, South Asia, Size, GDP, Garment, Medium
Q7(a)Calculate2 marks
With reference to Figure 1 and Extract A, calculate the number of workers employed by SMEs in Bangladesh. You are advised to show your workings.
Mark splitApplication 2
TopicThe labour market
Q7(b)Explain4 marks
With reference to Figure 1 and Extract A, explain what is meant by the term 'monopolistic competition'.
Mark splitKnowledge 2Application 2
TopicOligopoly and monopolistic competition
Q7(c)Examine8 marks
With reference to Extract B, examine the impact of rising energy costs on the profits of a garment manufacturer in Bangladesh. Illustrate your answer with an appropriate diagram.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicThe labour market
Q7(d)Analyse6 marks
With reference to extract B, analyse two likely effects on the labour market for garment workers of the possible increase in the minimum wage to 22 000 taka.
Mark splitKnowledge 2Application 2Analysis 2
TopicThe labour market
Q7(e)Discuss14 marks
With reference to Extract A and your own knowledge, discuss the likely effects of Government policies on the productive efficiency of SMEs.
Mark splitEvaluation 6
TopicPerfect competition and monopoly
Section C
Q8OptionalEvaluate20 marks
Evaluate the view that a business will always shut down if it is not able to make a normal profit. Illustrate your answer with an appropriate diagram(s).
Mark splitEvaluation 8
TopicRevenues, costs and profits
Q9OptionalEvaluate20 marks
With reference to an industry of your choice, evaluate the likely disadvantages for a business operating in an oligopolistic market structure. Illustrate your answer with a payoff matrix diagram.
Mark splitEvaluation 8
TopicOligopoly and monopolistic competition
Q10OptionalEvaluate20 marks
Evaluate the likely impact of the divorce of ownership from control on business objectives. Illustrate your answer with an appropriate diagram(s).
Mark splitEvaluation 8
TopicBusiness growth, mergers and market structure
