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CIMA Fundamentals of Business Economics BA1 Dumps in PDF

Free CIMA BA1 Real Questions (page: 4)

Page 4 of 95 BA1 PDF — 468 Questions

QUESTION: 16 Exam Topic: 1, Exam Pool A

All of the following are characteristics of a recession except which one?

Rising levels of unemployment.
Increased inflationary pressure.
Improving trade balances.
Increased government budget deficits.

Answer(s): B

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QUESTION: 17 Exam Topic: 1, Exam Pool A

Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?

A fall in domestic interest rates
Significantly lower labor costs available in a developing country
Improvement in the terms of trade
Excess aggregate demand in the economy of a trading partner

Answer(s): C

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QUESTION: 18 Exam Topic: 1, Exam Pool A

Which of the following economic conditions is likely to lead to demand-pull inflation?

An increase in interest rates and a rise in the world price of oil
An increase in government spending and firms operating at full capacity
Increased monopoly power in goods and labor markets
A worsening balance of payments deficit and a rising exchange rate

Answer(s): B

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QUESTION: 19 Exam Topic: 1, Exam Pool A

Which ONE of the following would best indicate that economic growth is taking place?

An increase in:

The economy's output gap
Investment to make good wear and tear of the national capital stock
Investment in human capital
Gross domestic product sustained over a number of years

Answer(s): D

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QUESTION: 20 Exam Topic: 1, Exam Pool A

In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:

cut public expenditure, reduce taxes, and lower interest rates
raise public expenditure, reduce taxes and lower interest rates
raise public expenditure, raise taxes and lower interest rates
cut public expenditure, raise taxes and raise interest rates

Answer(s): B

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