CIMA CIMAPRA17-BA1-1-ENG BA1 – Fundamentals of Business Economics (2017 SYLLABUS) (Online) Online Training
CIMA CIMAPRA17-BA1-1-ENG Online Training
The questions for CIMAPRA17-BA1-1-ENG were last updated at May 11,2025.
- Exam Code: CIMAPRA17-BA1-1-ENG
- Exam Name: BA1 - Fundamentals of Business Economics (2017 SYLLABUS) (Online)
- Certification Provider: CIMA
- Latest update: May 11,2025
In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:
- A . cut public expenditure, reduce taxes, and lower interest rates
- B . raise public expenditure, reduce taxes and lower interest rates
- C . raise public expenditure, raise taxes and lower interest rates
- D . cut public expenditure, raise taxes and raise interest rates
The existence of a natural rate of unemployment means that
- A . the short run Phillips curve is steeper that the long run Phillips curve.
- B . nominal wages rise faster the prices in the long run.
- C . governments cannot reduce unemployment below this level.
- D . there is no trade-off between inflation and unemployment in the long run.
In which of the stages of the trade cycle should the management accountant consider forecasting lower sales than in the previous year?
- A . Recession
- B . Depression
- C . Recovery
- D . Boom
Which of the following would result from a depreciation in the exchange rate for a country’s currency?
i. A fall in the foreign exchange price of that country’s exports.
ii. A rise in the foreign exchange price of that country’s imports.
iii. A rise in production costs for businesses using imported inputs.
iv. A worsening in that country’s terms of trade.
v. A fall in the domestic prices of that country’s imports.
vi. A rise in the domestic price of that country’s exports.
- A . (i), (ii) and (iv) only
- B . (i), (iii) and (iv) only
- C . (ii), (v) and (vi) only
- D . (iv), (v) and (vi) only
A rise in interest rates in an economy would lead to all of the following except which one?
- A . A rise in the exchange rate for the currency
- B . A rise in personal saving
- C . An increase in business investment
- D . A rise in public expenditure
Which of the following assertions would not be consistent with supply side economics?
- A . Lower taxation increases national income by reducing disincentives to work and invest
- B . High interest rates may reduce investment expenditure and so harm national income growth
- C . Increasing aggregate demand will not affect national income or the price level
- D . Aggregate supply creates its own demand
The distinguishing feature of a transnational (multinational) company is that
- A . it exports its products to more than one country.
- B . its production process uses inputs from more than one country.
- C . it has production facilities in more than one country.
- D . it has shareholders in more than one country.
Which ONE of the following increases the price of the shares in ABC plc?
- A . A fall in interest rates
- B . Falling demand for some of ABC’s key products
- C . Constant ROCE at ABC plc
- D . News of better economic outlook in ABC’s home country
All of the following are examples of structural unemployment except which one?
- A . Redundancies in shipbuilding caused by competition from abroad.
- B . Falling employment in manufacturing industry resulting from a decline in consumer incomes.
- C . Unemployment in coal mining caused by the advent of new energy sources.
- D . Above average unemployment rates among low skilled workers.
All of the following would lead to fall in the circular flow of national income except which one ?
- A . A fall in business investment
- B . A fall in personal savings rates
- C . A reduction in the level of government expenditure
- D . A rise in the marginal propensity to save
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