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CIMA CIMAPRA17-BA1-1 Exam Questions
BA1 - Fundamentals of Business Economics (Page 4 )

Updated On: 15-Feb-2026
Page 4 of 95
PDF with 468 Questions

If a government adopted a fiscal policy of cutting its budget deficit, the aggregate demand and supply model shows that the result would be:

  1. a shift in the aggregate demand curve to the right, a fall in output and employment and a rise in the price level
  2. a shift in the aggregate demand curve to the left, a fall in output and employment and a fall in the price level
  3. a shift in the aggregate demand curve to the left, a fall in output and employment and a rise in the price level
  4. a shift in the aggregate demand curve to the right, a rise in output and employment and a rise in the price level

Answer(s): B



Which of the following is most likely to lead an economy to suffer high unemployment?

  1. Withdrawals exceeding injections
  2. Aggregate demand exceeding aggregate supply
  3. Injections exceeding withdrawals
  4. A fiscal deficit

Answer(s): A



Which one of the following would raise both national income and disposable income ?

  1. An increase in transfer payments
  2. A reduction in rates of personal income tax
  3. An increase in business profits
  4. A rise in the rates of personal income tax

Answer(s): C



In the aggregate supply and demand model, a significant rise in the cost of energy for industry would lead to the

  1. Aggregate supply curve moving to the right
  2. Aggregate supply curve moving to the left
  3. Aggregate demand curve moving to the right
  4. Aggregate demand curve moving to the left

Answer(s): B



Part of a country's unemployment figures will consist of people moving between jobs.
Which type of unemployment is this?

  1. Structural unemployment
  2. Cyclical (or demand deficient) unemployment
  3. Frictional unemployment
  4. Real wage unemployment

Answer(s): C






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