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CIMA CIMAPRA17-BA1-1 Exam Questions
BA1 - Fundamentals of Business Economics (Page 7 )

Updated On: 16-Feb-2026
Page 7 of 95
PDF with 468 Questions

If an economy went into a recession, which industry would experience the largest proportionate fall in sales, output and employment?

  1. Retail supermarkets
  2. Food processing industry
  3. Petrol retailing
  4. Luxury good manufacturers

Answer(s): D



All of the following are examples of structural unemployment except which one?

  1. Redundancies in shipbuilding caused by competition from abroad.
  2. Falling employment in manufacturing industry resulting from a decline in consumer incomes.
  3. Unemployment in coal mining caused by the advent of new energy sources.
  4. Above average unemployment rates among low skilled workers.

Answer(s): B



All of the following are typical features of the downswing phase of the trade cycle except one.
Which ONE is the exception?

  1. A rise in the level of unemployment
  2. A fall in the rate of inflation
  3. The government budget balance moving towards a deficit
  4. The balance of payments current account moving towards a deficit

Answer(s): D



In a recession which ONE of the following would be likely to experience the largest fall in demand for its products?

  1. A manufacturer of industrial machine tools
  2. A chain of supermarket grocery stores
  3. A motor insurance company
  4. A toothpaste manufacturer

Answer(s): A



In which of the stages of the trade cycle should the management accountant consider forecasting lower sales than in the previous year?

  1. Recession
  2. Depression
  3. Recovery
  4. Boom

Answer(s): A






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