CIMA CIMAPRA17-BA1-1 Exam Questions Instant Access

Question 1

All of the following are examples of structural unemployment except which one?

ARedundancies in shipbuilding caused by competition from abroad.

BFalling employment in manufacturing industry resulting from a decline in consumer incomes.

CUnemployment in coal mining caused by the advent of new energy sources.

DAbove average unemployment rates among low skilled workers.

Answer : B

Question 2

Which of the following would not increase barriers to world trade?

ADifferent governments imposing different health and safety requirements for agricultural products

BAn oil exporting country insisting that oil is paid for in US dollars

CThe abolition of subsidies given to farmers in the European Union

DA requirement by the Japanese government that customs documents be presented and completed in Japanese

Answer : C

Question 3

It is necessary to include a balancing item in the balance of payments accounts in order to

ABalance the current and capital accounts

BEnsure that balance of payments equilibrium is achieved

CRecord accurately changes in the balance of official reserves

DCompensate for mistakes made when recording current and capital flows

Answer : D

Question 4

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 5

A business based in Country

A. agrees to buy a software package from a company based in Country O tor 20.000 Country O dollars 12 months time. At the time of the contract the exchange rate was 1 O dollar (0$) to 1.5 Country A pounds (A). When payment ism Rate is O$1 to A1 4.

What is the exchange rate gain (+) or loss (-) made by the Country A business?

Give your answer to a whole number.

A2000

B3000

C4000

D5000

Answer : A

Question 6

A country is a net oil exporter and the demand for oil overseas is price inelastic. A substantial increase in the world price of oil would tend to

AImprove the country's balance of payments on current account

BImprove the price competitiveness of manufacturing firms in the country

CCause the country's terms of trade to deteriorate

DIncrease GDP but not GNP in the country

Answer : A

Question 7

Which of the following assertions would not be consistent with supply side economics?

ALower taxation increases national income by reducing disincentives to work and invest

BHigh interest rates may reduce investment expenditure and so harm national income growth

CIncreasing aggregate demand will not affect national income or the price level

DAggregate supply creates its own demand

Answer : C

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