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CIMA Updated BA1 Exam Questions and Answers by emilio

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CIMA BA1 Exam Overview :

Exam Name: Fundamentals of Business Economics
Exam Code: BA1 Dumps
Vendor: CIMA Certification: CIMA Certificate
Questions: 468 Q&A's Shared By: emilio
Question 52

Economies of scale can result from all the following except one. Which is the exception?

Options:

A.

An increase in the size of a firm's capacity and plant

B.

A bus company replacing smaller buses with larger buses

C.

A factory employing two shifts of workers rather than one shift per day

D.

Increased firm size allowing the firm to employ specialist managers

Discussion
Question 53

The average price of recorded music CDs has been declining for several years. Which of the following changes in market conditions would NOT be a cause of this?

Options:

A.

Availability of new cheaper substitutes such as downloads

B.

Increased competition due to entry to the market by supermarket and internet sellers of CDs

C.

Decline in the number of CD shops due to bankruptcy and closure

D.

Growth in popularity of alternative goods such as mobile phones and video games

Discussion
Question 54

Which ONE of the following would make the market supply of a product price elastic?

Options:

A.

Suppliers are unable to store unsold product

B.

Firms can join the industry easily

C.

Demand is price elastic

D.

There is a shortage of resources to make the product

Discussion
Question 55

Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?

Options:

A.

They are more likely to suffer from diseconomies of scale

B.

They must recover their higher research and development expenditures

C.

They can increase profits by reducing output to force prices higher

D.

They have barriers to entry that stop customers going to new markets

Discussion
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