CIMA Fundamentals of Business Economics - BA1 FREE EXAM DUMPS QUESTIONS & ANSWERS
Complete the table inputting the relevant effect for each of the scenarios listed.
Correct Answer:
The economy of Country V is initially in equilibrium at a level of national income and employment denoted by Y, at price level denoted by P If there is an increase in aggregate demand, indicate on the graph below the new equilibrium point in the economy.
Correct Answer:
P2, Y2
Which of the following is most likely to lead to a rise in the exchange rate of country's currency and a fall in the price of stocks shares?
Correct Answer: B
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Which of the following might justify a policy of privatization by the government?
(i). Privatization inevitably reduces monopoly power and exploitation in the economy (ii). Privatization may be expected to increase the efficiency and competitiveness of the economy (iii). Revenue raised from privatization can reduce the public sector borrowing requirement (iv). Privatization helps to promote an enterprise culture amongst the population
(i). Privatization inevitably reduces monopoly power and exploitation in the economy (ii). Privatization may be expected to increase the efficiency and competitiveness of the economy (iii). Revenue raised from privatization can reduce the public sector borrowing requirement (iv). Privatization helps to promote an enterprise culture amongst the population
Correct Answer: B
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Governments provide public goods, such as street lighting, because
Correct Answer: B
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Company GHI wishes to develop a linear model for forecasting tractor sales based on the number of sales people it employs. In the model, tractor sales will be the dependent variable and the number of sales people the independent variable The company has collected sales data from each of its branches over the past year which has been reported below:
Correct Answer:
0.80
The government has set a maximum house price due to a massive house price rise in the last decade. This is denoted by the line Q1Q2 on the graph.
Which of the following may occur in light of the introduction of the maximum house price as it appears on the graph?
Select ALL that apply.
Which of the following may occur in light of the introduction of the maximum house price as it appears on the graph?
Select ALL that apply.
Correct Answer: A,B
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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
Correct Answer: D
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If a group of countries have adopted:
(i). Free trade in goods and services between member states,
(ii). Free movement of capital and labor between member states,
(iii). A common external tariff policy,
This would be an example of a(n)
(i). Free trade in goods and services between member states,
(ii). Free movement of capital and labor between member states,
(iii). A common external tariff policy,
This would be an example of a(n)
Correct Answer: C
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Lenders normally wish to offer their funds for the short term, but most borrowers prefer to borrow over the long term. Resolving this mismatch is known as:
Correct Answer: B
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