CIMAPRA17-BA1-1-ENG exam

In a fully employed economy, which one of the following would lead to demand pull inflation?A . A reduction in the rate of income taxB . A rise in value added taxC . An increase in the world price of oilD . A rise in interest ratesView AnswerAnswer: A

Which global financial institution is responsible for making long term loans to assist developing countries to invest and develop?A . The IMFB . The World BankC . The World Trade OrganizationD . The G20View AnswerAnswer: B

Which of the following would not be a reason for a government to impose a quota on imports?A . To plan the orderly decline of industries that have lost comparative advantageB . To prevent dumpingC . To protect infant and strategic industriesD . To prevent completely the country's citizens consuming...

A government might increase its budget deficit in order to reduceA . Demand-deficient or cyclical unemploymentB . Frictional unemploymentC . Technological unemploymentD . Classical or real-wage unemploymentView AnswerAnswer: A

In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?A . A manufacturer of industrial machine toolsB . A chain of supermarket grocery storesC . A motor insurance companyD . A toothpaste manufacturerView AnswerAnswer: A

Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?A . A fall in domestic interest ratesB . Significantly lower labor costs available in a developing countryC . Improvement in the terms of tradeD . Excess aggregate demand in the economy of a...

Which ONE of the following is an External stakeholder in a state-owned energy provider?A . The industry regulatorB . A firm selling equipment to the energy providerC . Customers of the energy providerD . The governmentView AnswerAnswer: A

CORRECT TEXT A business was selling 20,000 units of its product per month at a price of $10. When it lowers its price to $9 it finds that its sales rise to 24,000 units per month. The price elasticity of demand for this firm's product isView AnswerAnswer: -2

CORRECT TEXT A business has fixed costs of $200. Its total variable costs at different levels of output are as follows: The business can always sell its output at a price of $100 per unit The profit maximizing level of output isView AnswerAnswer: 4

A country's gross national product (GNP) will be higher than gross domestic product (GDP) if:A . indirect taxes are greater than government subsidiesB . there is a net inflow of factor payments on the balance of paymentsC . the country's imports are greater than its exportsD . government tax income...