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CIMA Certificate BA1 Updated Exam

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Question 20

Country A's tax system is one where every citizen pays tax on earned income over S12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise.

Which of the following describes the nature of the tax paid by individuals in Country A?

Options:

A.

Progressive

B.

Regressive

C.

Retentive

D.

Proportional

Question 21

Which THREE of the following does globalisation offer to businesses?

Options:

A.

The opportunity to participate in building international alliances.

B.

The opportunity to comply with national standards

C.

The benefits of protectionist measures

D.

The opportunity to lobby the government for less regulation

E.

By opening up new markets, the opportunity to increase sales

F.

The opportunity to relocate production in countries where the labor cost is lower

Question 22

The government of Country Z imposes a tariff on all imports of coal from other countries Which THREE of the following are possible effects of this decision in Country?

Options:

A.

The cost of living will fall.

B.

Employment in the coal industry will increase

C.

The balance of payment will improve.

D.

Government's revenue will improve.

E.

Coal producers will adopt new technologies to improve efficiency

F.

More resources will be allocated to alternative energy sources

Question 23

Which TWO of the following business costs are directly affected by a rise in the interest rate*? D The cost of procuring equity finance

Options:

A.

The cost of complying with government regulations.

B.

The cost of borrowing from private lenders.

C.

The cost of accessing government subsidies

D.

The cost of procuring intermediate goods.

Page: 5 / 17
Exam Code: BA1
Exam Name: Fundamentals of Business Economics
Last Update: May 16, 2024
Questions: 468
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