Cima surepassexam free Ba1 Questions Attempt by Sylvia q234 vce pdf

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Exam Name:	Fundamentals of Business Economics
Exam Code:	BA1 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	468 Q&A's	Shared By:	sylvia

Question 48

Which ONE of the following conditions would lead to instability over time in the incomes of producers of primary products?

Options:

Both demand and supply tend to be price inelastic

Large shifts in demand combined with supply that is price inelastic

Large supply shifts under the impact of unstable weather conditions

Both demand and supply tend to be price elastic

Discussion

Question 49

Which ONE of the following statements does NOT describe a position of profit maximization?

Options:

MC=MR

Price elasticity of demand is less than 1

Point of greatest excess of total revenue over total costs

Total cost curve has the same slope as the total revenue curve

Discussion

Question 50

When the government intervenes in the market economy to correct a market failure

Options:

Economic welfare always increases

The problem of government failure may result

In all cases the market mechanism ceases to function

The intervention always creates a surplus

Discussion

Question 51

In 201X the market for a crop suffered high prices. According to cobweb theory what was likely to have happened in the following year?

Options:

Price will stay high as farmers restrict supply to make extra profits

Price will fall because the high price in 201X gave an incentive to farmers to plant more and flood the market with extra supply

Price will fall as consumers find cheaper substitutes to the high-priced crop

Price will rise further as buyers stockpile the new harvest to avoid suffering higher prices for a second year

Discussion

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