economics -organisations

UNION is a large bank. Which TWO of the following would be classified as connected

stakeholders for UNION ?

• employees

• Customers

• shareholders

• managers and directors

• The government banking regulator

Monitoring the principal-agent problem is the responsibility of

• A The Government

• B The Board of Directors

• C The Financial Services Authority

• D The Shareholders

The basic economic problem facing all economies is:

• A Maximising economic growth

• B Unemployment

• C Inflation

• D Allocating scarce resources

Opportunity cost is:

• A The cost of producing one extra unit of the commodity

• B The lowest average cost of the commodity

• C The total cost of the commodity

• D The loss of the next best alternative

Which of the following best describes the opportunity cost of a programme of immunisation?

• A The actuarial valuation of the lives of those who are protected against the disease

• B The cost of the vaccine

• C The cost of providing the medical staff

• D The work the medical staff cannot undertake as a result of the programme

In a market economy, decisions and choices about resource allocation are determined by:

• A The government

• B The money markets

• C The price mechanism

• D A combination of market forces of supply and demand, and government decisions

The sector of the economy which consists of manufacturing industries is the :

• A Primary sector

• B Secondary sector

• C Tertiary sector

• D Quaternary sector

Economic growth can achieve all of the following except

• A Higher living standards

• B The elimination of the economic problem

• C Increased public consumption

• D Increased private consumption

In economic terms, a good is scarce if it

• A Is only available in the shops

• B Only exists in small quantities

• C Provides consumers with economic welfare

• D Commands a price

Company directors are appointed by:

• A Auditors

• B The Board

• C Senior management

• D Shareholders