BA1 CIMA Fundamentals of Business Economics Free Practice Exam Questions (2025 Updated)
Prepare effectively for your CIMA BA1 Fundamentals of Business Economics certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.
Golden Crisp Cereals plans to build its new factory on the outskirts of Bimbleton, an affluent medium-sized town where its current headquarters is based. The area where they are planning to build the factory was
formerly a country park.
Of the following, which stakeholder would be most likely to protest against the construction of the new Golden Crisp Cereals factory?
MakeHay are struggling to co-ordinate their different departments so that deadlines are hit. Two managers suggest different ideas to solve this issue.
Manager Smith suggests MakeHay open a new office who is responsible for co-ordinating the different departments, and would also have their own production targets.
Manager Jones suggests that opening another office would increase production, and so ensure deadlines are hit.
Why is neither manager correct?
Peter holds his current and savings accounts with Western Mutual.
Which of the following is a benefit that Peter should expect to enjoy from possessing accounts with Western Mutual?
A trade agreement that removes all import tariffs between member countries, sets up common external tariffs against non-members, but does not advance toward economic integration is called
The management of Pennyfarthing's Toy Bazaar requires financial advice, but is unsure of which type of bank to approach to acquire this. The company receives a profit of £1,000,000 a year, and currently operates in
Europe and North America.
Which of the following reasons explains why Pennyfarthings Toy Bazaar should use a wholesale bank?
A railway franchise in north-eastern Messu Potami has recently changed hands, and is now being operated by the company IstClass. However, IstClass already operate the railway franchise in northwestern Messu
Potami.
Which of the following courses of action would be most appropriate for the government of Messu Potami to take?
Select ALL that apply.
Golden Crisp Cereals has calculated that its demand price elasticity is -1.4. It wants to expand in order to produce more cereal and hence increase its sales.
Which of the following are ways in which Golden Crisp Cereals could expand in the short run?
Select ALL that apply.
Best for Beer is a brewery based in the UK. In the last year, it has seen its sales decrease by 23%. During the same period, the British Government has launched and run a public health campaign against excessive
alcohol consumption due to the rising number of incidents related to excessive alcohol consumption or 'binge-drinking' in the country.
Which of the following sources would be most relevant for Best for Beer to discover more about the public health campaign's effect on sales?
There are waiting lists and shortages of a product. Which ONE of the following statements explains the cause of this?
If a government, on grounds of economic efficiency, were to levy a tax on an industry because of the pollution caused by production in the industry, the tax should be equal to
Which of the following statements about public goods is correct?
All of the following statements about a firms total revenue curve are true except which ONE?
Which of the following is most likely to increase rather than to reduce market imperfections?
Which of the following sets of conditions will lead to greater stability (or convergence) of prices in the Cobweb model (or Cobweb theorem)?
In the long run a firm may find its average cost of production rising because
Which of the following industries would be expected to have the largest number of businesses operating within them?
All of the following are examples of economies of scale except which one?
Which ONE of the following circumstances is essential if producer incomes are to rise following the imposition of a price floor (minimum price) in a market?
Which ONE of the following is NOT an Internal stakeholder?
The main purpose of government competition policy is to
