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CIMAPRA17-BA1-1-ENG
Fundamentals of Business Economics
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Question: 90
A business would benefit most from an appreciation in the currency of the country in which it is based if: A . it exports to other countries a significant proportion of its output
B . it imports a high proportion of the raw materials and components it uses C . in its domestic market it faces competition from imports
D . its production costs are largely domestic labor costs
Answer: B
Question: 91
All of the following could cause the onset of a recession except which one? A . A significant appreciation of the exchange rate
B . A decline in business investment
C . A significant fall in personal savings rates
D . An increase in the government budget deficit
Answer: C
Question: 92
All of the following items would appear as a credit on the current account of a country�s balance of payments accounts except which one?
A . Interest payments on financial assets held overseas. B . Exports of manufactured goods.
C . Outflows of capital.
D . Expenditure by visiting foreign tourists.
Answer: C
Question: 93
When the economy is in recession, which of the following is least likely to reduce unemployment? A . An expansionary fiscal policy
B . The central bank cutting interest rates
C . Retraining schemes for redundant workers
D . A regulation extending employment rights for newly-hired workers
Answer: D
Question: 94
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
Answer: D
Question: 95
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?
A . A shift in domestic income from consumers to producers of the goods
B . A rise in the domestic price of the imported good
C . Greater cost push inflationary pressure in the economy
D . A shift to the left in the demand curve for the imported good
Answer: D
Question: 96
Which global financial institution is responsible for providing stabilization funding to assist developed and developing countries with short term borrowing needs and needs for foreign currency?
A . The IMF
B . The World Bank
C . The World Trade Organization D . The G20
Answer: A
Question: 97
Which of the following statements about supply-side economics is correct? A . Supply-side policies are part of aggregate demand management policies. B . Fiscal policy cannot be used as a part of supply-side policy
C . Supply-side economists always reject the use of policy to expand demand
D . Supply-side policies are used to Improve the economy�s efficiency and competitiveness
Answer: D
Question: 98
If an economy went into a recession, which industry would experience the largest proportionate fall in sales, output and employment?
A . Retail supermarkets
B . Food processing industry C . Petrol retailing
D . Luxury good manufacturers
Answer: D
Question: 99
All of the following are regarded as objectives of profit seeking organizations except one. Which ONE is the exception?
A . Raising shareholder wealth
B . Long term growth in sales
C . Meeting regulatory, accounting and reporting standards D . Maximizing profit
Answer: C
Question: 100
Select the best definition of a regressive tax from the options below: A . A tax which rises proportionately with income
B . A tax which rises more than proportionately with income C . A tax which rises less than proportionately with income D . A tax on expenditure
Answer: C

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Fundamentals of Business Economics Practice Test

CIMAPRA17-BA1-1-ENG exam Format | Course Contents | Course Outline | exam Syllabus | exam Objectives

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CIMAPRA17-BA1-1-ENG trial Questions

Killexams VCE exam Simulator 3.0.9

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