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Exam Code: CIMAPRA17-BA1-1-ENG
Exam Questions: 471
BA1 - Fundamentals of Business Economics (2017 SYLLABUS) (Online)
Updated: 26 Nov, 2025
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Question 1

Which of the following economic conditions is likely to lead to demand-pull inflation?

Options :
Answer: B
Question 2

Based on a trade balance between Country A and Country B over a ten year period, the underlying trend of the trade balance is represent equation
-114.027 -1.47x
where x is the time period expressed in years.
Assuming an additive forecasting model, with a seasonal factor of 82 6, then the forecast for year 2016, in whole units is:
Other-Image-51f2448eb-9bfc-48ce-9c65-69eccc11ac58

Options :
Answer: A
Question 3

A good has a price elasticity of supply of 0.8. Which of the following best describes the effects of a rise in demand for this good?
1. More will be spent on the good
2. More of the good will be made and sold
3. Producer incomes will rise
4. Price rises more than proportionately to the rise in quantity produced

Options :
Answer: D
Question 4

Every year a household allows its bank account to become overdrawn for 3 months to pay for its annual holiday. Which one of the following statements correctly describes this?

Options :
Answer: C
Question 5

A rise in interest rates in an economy would lead to all of the following except which one ?

Options :
Answer: C
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