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CIMA BA1 Exam With Confidence Using Practice Dumps

Exam Code:
BA1
Exam Name:
Fundamentals of Business Economics
Certification:
CIMA Certificate
Vendor:
CIMA
Questions:
468
Last Updated:
Mar 17, 2026
Exam Status:
Stable
CIMA BA1

BA1: CIMA Certificate Exam 2025 Study Guide Pdf and Test Engine

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Fundamentals of Business Economics Questions and Answers

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Question 1

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?

Options:

A.

The model is based on historical data, so it is of little use in making forecasts

B.

1 percent increase in the number of fixed broadband internet subscribers will lead to 0 3 percent increase in household final consumption expenditure.

C.

A non-linear relationship is suggested by the model between household final consumption expenditure and the number of fixed broadband internet subscribers.

D.

The model makes accurate forecasts on household final consumption expenditure in Country and therefore it should be widely applied to most countries and regions.

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Question 2

industrial action is more likely to occur within a large organisation than a small organisation, due to senior management becoming re managers becoming complacent, as well as shop floor hostility. The effect of this will be an increasing average cost as production

The statement above is most closely describing an example of which of the following?

Options:

A.

External diseconomy of scale.

B.

Internal diseconomy of scale

C.

Internal economy of scale

D.

External economy of scale

Question 3

The central bank can increase liquidity in the banking system, by:

Options:

A.

selling government bonds and lowering interest rates

B.

selling government bonds and raising interest rates

C.

buying government bonds and raising interest rates

D.

buying government bonds and lowering interest rates

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