|Exam Name||:||Fundamentals of Business Economics|
|Questions and Answers||:||100 Q & A|
|Updated On||:||Click to Check Update|
|PDF Download Mirror||:||CIMAPRA17-BA1-1-ENG Brain Dump|
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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
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
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.
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
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
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
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
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
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
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
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