CIMA CIMAPRA17-BA1-1 Exam Questions Instant Access

Question 1

Which ONE of the following would make the market supply of a product price elastic?

ASuppliers are unable to store unsold product

BFirms can join the industry easily

CDemand is price elastic

DThere is a shortage of resources to make the product

Answer : B

Question 2

If a government, on grounds of economic efficiency, were to levy a tax on an industry because of the pollution caused by production in the industry, the tax should be equal to

Athe amount required to eliminate consumer demand for the product

Bthe excess profits earned by the industry

Cthe costs of clearing up previous pollution caused

Dthe difference between the private and social costs of production

Answer : D

Question 3

Atu, a new social media platform, has launched an advertising campaign directed at areas of Country X where there is a higher proportion of young people than elsewhere.

Which source is most likely to have been used by Atu to acquire this data?

ADemographic statistics published in a census

BThe l{ addresses of computers in these areas

CThe level of youth unemployment as recorded by the government

DThe prominence of other brands focused on young people in the area

Answer : A

Question 4

Firms may suffer from X-inefficiency because of organizational slack. All of the following would lead to organizational slack except which one?

AUncertainty about future demand

BManagers become more cautious

CA complex organizational structure in the firm

DThe number of rival firms increases

Answer : D

Question 5

Which of the following events might cause the demand curve for chicken meat to shift to the right?

AA fall in the price of chicken meat

BA fall in the prices of turkey meat

CAn outbreak of salmonella infection in chicken meat

DThe publication of a health report urging people to eat white rather than red meats

Answer : D

Question 6

All of the following are sources of finance for business except which one?

ARetained profits

BCertificates of deposit

CNew share issues

DMortgages

Answer : B

Question 7

Which of the following statements about the sources of stakeholder conflict is true?

ADifferent stakeholders have different objectives

BThe various stakeholders have differing degrees of influence

CStakeholder conflict only occurs in not-for -profit organizations

DStakeholders with high interest sometimes have limited influence

Answer : A

CIMA BA1 - Fundamentals of Business Economics CIMAPRA17-BA1-1 Exam Questions