O-LevelEconomicsMicroeconomic decision makers2281/11 · May/June 2013 · Q211 Mark

The multinational Indian Tata Group, which has companies in chemicals, consumer goods, engineering and communications, has been buying foreign companies. What does this action most likely suggest about the company?

AIt intends to achieve a domestic monopoly position.

BIt intends to increase its level of specialisation.

CIt intends to reduce fixed costs.

DIt intends to spread risks by diversification.

✓ Correct answer

D: It intends to spread risks by diversification.

Oracle Prep sorts past-paper questions by topic, so you can drill Microeconomic decision makers and see which topics are most likely to come up next.

Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2013 Paper 1 Variant 1, question 21.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content