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Free CIMAPRA17-BA1-1 Exam Braindumps
BA1 - Fundamentals of Business Economics Questions 121–125 (page: 26)

Updated On: 9-Feb-2026
Page 26 of 95
PDF with 468 Questions

If a firm increases employment of all its factors of production by 50% and as a result output increases by 60%, it has experienced

  1. Increasing productivity of labor
  2. Increasing returns to scale
  3. External economies of scale
  4. The benefits of the division of labor

Answer(s): B



Which of the following are examples of long run internal economies of scale?

  1. Mass production using robot machine tool technology ii. Obtaining lower prices when buying raw materials in bulk iii. Long run technical change in the industry iv. The emergence of specialized training institutions for the industry
  2. Lower borrowing costs for large firms vi. The spreading of fixed costs over a larger output
  3. (i), (ii) and (iii) only
  4. (ii), (iii) and (v) only
  5. (i), (ii) and (v) only
  6. (i), (iv) and (vi) only

Answer(s): C



MNO is considering moving production to a developing country.
Which ONE of the following would NOT reduce its production costs?

  1. MNO can choose from a wider choice of suppliers or production locations
  2. The move will increase the length of MNO's supply chains
  3. MNO may benefit from a superior skill base in some emerging economies
  4. Reduced employment regulation in some emerging economies may cut staff costs

Answer(s): B



All of the following are examples of how e-business can benefit a business organization except one.
Which ONE is the exception?

  1. Cheaper procurement via on line search and ordering
  2. Reduced transport costs from internet buying
  3. Lower entry barriers by reducing the need for expensive premises
  4. Reduced transactions costs leading to low variable costs

Answer(s): B



Globalization will have all the following effects on businesses except one.
Which ONE is the exception?

  1. Access to cheaper sources of supply in emerging economies
  2. Increased competition on world markets for manufactured goods
  3. Decreased international transportation and communications costs
  4. The ability to shift production to low cost locations

Answer(s): C



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