CIMAPRA17-BA1-1-ENG

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.View AnswerAnswer: C

In a recession, the appropriate policy for a government seeking a recovery in the economy would be to:A . cut public expenditure, reduce taxes, and lower interest ratesB . raise public expenditure, reduce taxes and lower interest ratesC . raise public expenditure, raise taxes and lower interest ratesD . cut...

All of the following are supply side policies to promote economic growth except which one?A . Reduction of marginal rates of income tax.B . Tariffs to encourage domestic suppliers of goods.C . Deregulation of the financial sector.D . Tax relief for business expenditure on research and development.View AnswerAnswer: B

Country Y and country Z both impose tariffs on goods imported from each other. Which of the following would likely to be a long-term effect of the imposition of such tariffs?A . None. Tariffs affect exports and imports rather than real incomeB . Real income would be lower in Z...

Which of the following best defines “aggregate supply”?A . The stock of output available for sale in an economyB . The full employment level of output of the economyC . The flow of goods and services produced by an economy during the yearD . The level of prices at which...

Inflation is undesirable for all of the following reasons except which one?A . Inflation decreases the international competitiveness of the business sector.B . Inflation distorts the price system and the process of resource allocation.C . Inflation shifts wealth from debtors to creditors in an arbitrary fashion.D . Inflation makes business...

Which of the following assertions would not be consistent with supply side economics?A . Lower taxation increases national income by reducing disincentives to work and investB . High interest rates may reduce investment expenditure and so harm national income growthC . Increasing aggregate demand will not affect national income or...

CORRECT TEXT A bond has a coupon rate of 7%, a nominal value of $100 and a market price of $140 The percentage running yield is %View AnswerAnswer: 5

Which of the following is not likely to result from a fall in the rate of interest?A . Increased consumptionB . Increased investmentC . A higher exchange rateD . An increase in aggregate demandView AnswerAnswer: C

All of the following are features of the process of globalization except which one?A . Increased flows of factors of production between economies.B . Higher international disparities in rates of return on capital.C . Increasing interdependence between economies.D . Higher levels of trade in components and semi-finished goods.View AnswerAnswer: B