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

Free CIMA CIMAPRA17-BA1-1 Dumps Questions (page: 5)

Page 5 of 95 CIMAPRA17-BA1-1 PDF — 468 Questions

QUESTION: 21 Exam Topic: 1, Exam Pool A

All the following statements relate to an increase in government spending which is not accompanied by an increase in taxation.
Which statement is NOT correct?

The government's budget deficit will increase
The aggregate demand curve will shift to the right
The initial change in government spending may lead to a larger impact upon the economy
An expansionary monetary policy is being pursued

Answer(s): D

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QUESTION: 22 Exam Topic: 1, Exam Pool A

Inflation is undesirable for all of the following reasons except which one?

Inflation decreases the international competitiveness of the business sector.
Inflation distorts the price system and the process of resource allocation.
Inflation shifts wealth from debtors to creditors in an arbitrary fashion.
Inflation makes business forecasting and planning more difficult.

Answer(s): C

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QUESTION: 23 Exam Topic: 1, Exam Pool A

All of the following could cause the onset of a recession except which one?

A significant appreciation of the exchange rate
A decline in business investment
A significant fall in personal savings rates
An increase in the government budget deficit

Answer(s): C

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QUESTION: 24 Exam Topic: 1, Exam Pool A

As a result of a period of rapid economic growth, an economy is likely to experience all of the following except which one?

An improving overseas trade balance.
Falling levels of unemployment.
Increased inflationary pressure.
Rising government tax receipts.

Answer(s): A

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QUESTION: 25 Exam Topic: 1, Exam Pool A

All of the following are early indicators of a recovery from a recession except which one?

A rise in business confidence.
An acceleration in the growth of the money supply.
A fall in the level of net personal debt.
An increase in the number of unfilled vacancies.

Answer(s): C

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