Free CIMA BA1 Practice Exam with Questions & Answers

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.

To plan the orderly decline of industries that have lost comparative advantage

To prevent dumping

To protect infant and strategic industries

To prevent completely the country's citizens consuming an imported demerit good

Increased flows of factors of production between economies.

Higher international disparities in rates of return on capital.

Increasing interdependence between economies.

Higher levels of trade in components and semi-finished goods.

A fall in interest rates

Falling demand for some of ABC's key products

Constant ROCE at ABC plc

News of better economic outlook in ABC's home country

Governments always regard control of inflation as the most important policy objective

Conflicts between objectives mean that macroeconomic policy can never be regarded as successful

Expanding demand to reduce unemployment may mean that the balance of payments worsens

The pursuit of economic growth inevitably increases unemployment

Interest payments on financial assets held overseas.

Exports of manufactured goods.

Outflows of capital.

Expenditure by visiting foreign tourists.

Retail supermarkets

Food processing industry

Petrol retailing

Luxury good manufacturers

None. Tariffs affect exports and imports rather than real income

Real income would be lower in Z but higher in Y

Real income would be lower in Y but higher in Z

Real income would grow at a slower rate in both countries compared to a situation in which there are no tariffs

An inflow of capital on the capital account.

Lending abroad on the capital account.

A fall in the foreign exchange reserves

A surplus on the government budget.

Recession

Depression

Recovery

Boom