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CIMA BA1 Practice Test Questions Answers

Exam Code: BA1 (Updated 468 Q&As with Explanation)
Exam Name: Fundamentals of Business Economics
Last Update: 01-Jul-2025
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Questions Include:

  • Single Choice: 405 Q&A's
  • Multiple Choice: 38 Q&A's
  • Drag Drop: 2 Q&A's

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    All CIMA Certificate Related Certification Exams

    Total Questions: 392
    Updated: 02-Jul-2025
    Total Questions: 393
    Updated: 02-Jul-2025

    BA1 Questions and Answers

    Question # 1

    Company X's government has seen the the balance of payments deficit steadily rising while they have been in power.

    Which of the following would be a good policy to implement to counteract this?

    A.

    Decrease the interest rates across the whole economy to limit foreign investment

    B.

    Reduce bureaucracy by removing quotas and obligations for imported goods

    C.

    Increase the rate of income tax by 10% in each bracket

    D.

    Increase the rate of interest in the economy by 5%

    Question # 2

    Miss Ruby designs and makes large ornaments for grand buildings. She is informed that her range of candle sticks have a price elasticity of-1.2

    Which of the following plans would be most appropriate?

    A.

    Produce more candlesticks

    B.

    Create more ornate candlesticks which have a higher cost per product

    C.

    Run an expensive ad campaign in an interior design magazine

    D.

    Increase the price of candle sticks

    Question # 3

    Pills Pharmaceuticals has founded a new department which focuses on big data analysis. The organisation plans to perform this analysis using data collected by two subsidiaries, one based in London and the other in San Francisco.

    Which of Gartner's 'Three Vs' is applicable to this scenario?

    A.

    Variety

    B.

    Volume

    C.

    Velocity

    D.

    Verification

    Question # 4

    Which of the following will NOT affect the price elasticity of supply?

    A.

    The time period considered.

    B.

    Production costs.

    C.

    The level of stocks.

    D.

    Proportion of income spent.

    Question # 5

    A wireless phone manufacturer currently sells 2,000 units per quarter at a price of $400 The estimated price elasticity of demand is -2.5.

    The manufacturer is considering an increase in the price to $440

    What will this raise (+) or reduce (-) total revenue by? Give your answer in whole numbers.

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