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  3. BA1

CIMA Fundamentals of Business Economics BA1 Exam Questions in PDF

Free CIMA BA1 Dumps Questions (page: 14)

BA1 PDF — 468 Questions

All of the following are features of an economic union (for example, the European union) except which one?

  1. A fixed exchange rate relative to non union currencies.
  2. Free movement of goods and services between member states.
  3. A common external tariff.
  4. Free movement of factors of production between member states.

Answer(s): A



An important distinction between a free trade area and a customs union is that

  1. Only a customs union erects a common external tariff
  2. Only a free trade area allows free internal trade in services as well in goods
  3. Only a customs union is an example of a multilateral trading agreement
  4. Only a free trade area involves common economic policies

Answer(s): A



All of the following will result from increased international mobility of factors of production except which one?

  1. A rise in world income and output.
  2. Decreased international factor price differentials.
  3. Increased financial flows on countries balance of payments capital accounts.
  4. Decreased international specialization in production.

Answer(s): D



Which of the following would not be a reason for a government to impose a quota on imports?

  1. To plan the orderly decline of industries that have lost comparative advantage
  2. To prevent dumping
  3. To protect infant and strategic industries
  4. To prevent completely the country's citizens consuming an imported demerit good

Answer(s): D



The imposition of a tariff on imported goods by a country's government will result in all of the following except one.
Which ONE is the exception?

  1. A shift in domestic income from consumers to producers of the goods
  2. A rise in the domestic price of the imported good
  3. Greater cost push inflationary pressure in the economy
  4. A shift to the left in the demand curve for the imported good

Answer(s): D



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