2ND FINAL EXAM – ACADEMIC YEAR 2018 - 2019

Subject: BUSINESS – GRADE 11

Time allowance: 45 minutes
Code 1

Student name: ..................................................................................... Class: ......................

Date: …………………………………………………………….

Score Teacher’s comment

/100

Part 1: Theory
Question 1: Which of the below is opportunity cost?
a) 200 million dongs that the parents must pay for their son’s education.
b) 160 million dongs that a student cannot get because he chose to continue studying instead
of going to work.
c) 300 million dongs that a contractor pays to have the opportunity to sign a construction
contract.
d) 10.000 dong that a person pays for a fortune ticket, so he can get the opportunity to
change his life.

Question 2: Demand describes the quantity of the product in relation to the price which the
consumers are:
a) Willing to buy
b) Able to buy
c) Willing and able to buy
d) Willing or able to buy

Question 3: Demand is shown on the graphic as:

a) Negative slope
b) Positive slope
c) Zig-zag
d) Parallel with the quantity axis

Question 4: Which of the factor below affects on the movement across the demand of a
product?
a) Price of the product
b) Price of the alternative product
c) Price of the complementary product
d) Price of the material which the product is made of

Question 5: What are the two types of market research that a business could use?
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 Part 2: Practice
Question 6: Michael owns a small fish restaurant. He employs two chefs (cooks) and three workers
who serve in the restaurant. Michael has been trying to increase added value to improve profits.
Michael has been looking at the financial performance of his business. An extract is shown in Table 1.
Michael has received a number of complaints about food and service. He knows he must improve
quality but cannot decide on the best way to do this.

Last year Current year

Revenue X 300.000
Cost of sales 180.000 150.000
Gross profit 120.000 150.000
Expenses 90.000 Y
Profit 30.000 15.000
Table 1 Extract from income statements ($)

(1) Define ‘revenue’.

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(2) Calculate the values of X and Y.
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Outline two ways Michael could increase added value.
Way 1: .................................................................................................................................................
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Explanation: ........................................................................................................................................
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Way 2: .................................................................................................................................................
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Explanation: ........................................................................................................................................
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Question 7: Given the demand function and supply function of the product A as shown below
QD = -0,1P+40, QS= 0,2P - 14

(1) Identify equilibrium (calculate Q and P) and demonstrate in graphic.

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(2) Assuming that the customers’ income makes quantity demanded decreases by 6 unit at any price.
Identify the new equilibrium. How are quantity and price different from the beginning? Demonstrate in
graphic.

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(3) At the beginning equilibrium (1), assuming that one supplier with supply function Q=0,1P-6 gets
out of the market. Identify the new equilibrium and demonstrate in graphic.
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(4) At the beginning equilibrium (1), assuming that quantity demanded drops 20%. Identify the new
equilibrium and demonstrate in graphic.
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*Additional Question (OPTIONAL): AB is a large business providing transport services in country Z.
The economy of country Z is in recession. Fig. 1 shows the market distribution of AB’s sales in 2018.
AB has borrowed $200m from banks. Table 1 shows a summary of AB’s financial data in 2018. AB
has received a takeover bid from a rival business based in another country.

Fig. 1: Market distribution of sales (2018) Table 1: Financial data (2018)

1) Calculate the value of AB’s revenue from domestic sales in 2018.

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2) Identify and explain two disadvantages to AB of borrowing a lot of money from banks.

Disadvantage 1:
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Explanation:
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Disadvantage 2:
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Explanation:
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*Additional Question (OPTIONAL):: Base on the table below, identify demand function in two types:
Q=f(P) and P=f(Q)

Price Quantity
100 40
150 35
200 30
250 25
300 20
Explanation:
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