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.
According to the principle of comparative advantage which of the following explains how country V may benefit from international trade?
Company GHI wishes to develop a linear model for forecasting tractor sales based on the number of sales people it employs. In the model, tractor sales will be the dependent variable and the number of sales people the independent variable
The company has collected sales data from each of its branches over the past year which has been reported below:
The following scatter diagram displays the total life expectancy in years on the X axis and GDP per capita (constant 2000 S) on the Y axis, in Country S for the past 40 years. Which of the following statements is true in respect of the graph?
Which of the following statements defines a diseconomy of scale?
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:
The following table reports are for five hotels belonging to the same hotel chain, the rank in terms of sales performance (with 1 - best average score obtained in customer reviews, and the rank in terms of average score from customer reviews (with 1 = best average ..
Calculate the Spearman's rank correlation coefficient to one decimal place:
A binding financial contract that can be used to hedge exchange rate risks by fixing the rate of exchange at a fixed date, and can be traded in financial markets, is known as:
Which THREE of the following does globalisation offer to businesses?
Country A's tax system is one where every citizen pays tax on earned income over S12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise.
Which of the following describes the nature of the tax paid by individuals in Country A?
Which of the following describes the effect an interest rate rise may have on a company?
Which TWO of the following policy actions might be available to a government that wishes to reduce a deficit in the balance of payments?
A hairdressing salon can either invest in
1. New. more comfortable chairs at a cost of $5,000
2. New shop windows at a cost of $4,000
Over the next five years. Investment 1 will generate an additional amount of profit whose present value is $6,000. while Investment 2 additional amount of profit whose present value is $5,500
What is the net present value of the best project? Give your answer to the nearest whole dollar.
A research business compiles the following data for Country D over 8 years:
* Household expenditure, y (in millions of constant 20X6 dollars);
* The number of fixed broadband internet subscribers, x (in thousands).
Based on this information the following regression model is developed:
y = 332668 * 45.8x - 0 003x2
Which of the following statements is correct?
A company currently sells 10,000 bottles of "bright pink" nail varnish every year at $5 per bottle If the price is reduced to $4.50 per bottle it is expected that the company will sell an extra 2,000 bottles
What is the price elasticity of demand of the nail varnish?
Commercial banks can create credit because:
If a central bank wished to increase the supply of money and credit in the economy it would:
A company in Country M owns a subsidiary in Country O valued at OS200 million. The rate of exchange between the Country M dollar (M$) and the Country O dollar (OS) is OS1 - MS6
If the Country M S depreciated by 10% what would be the increase or decrease in the MS valuation of the subsidiary?
Give your answer in whole millions and indicate whether it is an increase or decrease.
For a typical business, which of the following is NOT a potential benefit of globalisation?
A magazine currently has a circulation of 500,000 copies per year at a price of $5 per copy Following a market survey it has been suggested that the price of each copy should be reduced to $4 50. It is expected this will lead to an increase in circulation of 25.000 copies per year.
What is the price elasticity of demand of the magazine?
Which of the following equations is correct regarding interest rates?
