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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 18)

Page 18 of 118
PDF with 468 Questions

Which of the following would not be a reason for a government to impose a quota on imports?

  1. To plan the orderly decline of industries that have lost comparative advantage
  2. To prevent dumping
  3. To protect infant and strategic industries
  4. To prevent completely the country's citizens consuming an imported demerit good

Answer(s): D



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?

  1. A shift in domestic income from consumers to producers of the goods
  2. A rise in the domestic price of the imported good
  3. Greater cost push inflationary pressure in the economy
  4. A shift to the left in the demand curve for the imported good

Answer(s): D



A business would benefit most from an appreciation in the currency of the country in which it is based if:

  1. it exports to other countries a significant proportion of its output
  2. it imports a high proportion of the raw materials and components it uses
  3. in its domestic market it faces competition from imports
  4. its production costs are largely domestic labor costs

Answer(s): B



Which of the following would result from a depreciation in the exchange rate for a country's currency?

  1. A fall in the foreign exchange price of that country's exports.
    ii. A rise in the foreign exchange price of that country's imports.
    iii. A rise in production costs for businesses using imported inputs.
    iv. A worsening in that country's terms of trade.
  2. A fall in the domestic prices of that country's imports.
    vi. A rise in the domestic price of that country's exports.
  3. (i), (ii) and (iv) only
  4. (i), (iii) and (iv) only
  5. (ii), (v) and (vi) only
  6. (iv), (v) and (vi) only

Answer(s): B



Page 18 of 118



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