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BA1 Exam Dumps - CIMA Certificate Questions and Answers

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Questions 4

Which of the following would tend to make the market supply of a good price inelastic?

Options:

A.

There are few barriers to entry into the industry.

B.

Many firms in the industry have unused production capacity.

C.

Most firms in the industry have high stock levels of finished goods.

D.

Newly employed workers in the industry require high levels of initial training.

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Questions 5

Which THREE of the following can be used to reduce the principal-agent problem in business organisations?

Options:

A.

Requiring managers to uphold detailed disclosure and reporting practices

B.

Introducing bonuses related to the profit performance of the business.

C.

Implementing a 'top-down' decision-making process.

D.

Implementing a share distribution scheme.

E.

Requiring managers to take into account the interests of external stakeholders.

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Questions 6

Which of the following is an example of reflationary monetary policy?

Options:

A.

Lowering interest rates in order to boost the economy during a recession.

B.

Introducing a tax on financial transactions in order to reduce the volume of speculative transactions

C.

Increasing investment in education in order to improve the long term competitiveness of the economy

D.

Reducing government expenditure in order to rem in a budget deficit

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Questions 7

Why was the Global Banking Crisis of 2007 followed by a credit crunch of low lending?

Options:

A.

Governments sought to reduce aggregate demand to avoid a boom

B.

Households and firms were unwilling to borrow

C.

Banks had lost reserves and could not support high lending

D.

Households had stop saving due to loss of confidence in commercial banks

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Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: May 1, 2024
Questions: 468
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