Question 1
In the circular flow of income, which of the following is classified as a 'withdrawal' (leakage) from the economy?
Correct Answer:
Savings
Question 2
Gross Domestic Product (GDP) measured by the expenditure method is the sum of consumption, investment, government spending and:
Correct Answer:
Net exports (exports minus imports)
Question 3
An economy has a marginal propensity to consume (MPC) of 0.8. What is the value of the multiplier?
Correct Answer:
5
Question 4
Which type of unemployment is caused by a downturn in the business cycle and a general deficiency of aggregate demand?
Correct Answer:
Cyclical (demand-deficient) unemployment
Question 5
A government pursuing expansionary fiscal policy to stimulate the economy would most likely:
Correct Answer:
Cut taxation and increase public spending
Question 1
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Prepare with the CIMA BA1 Practice Questions - CIMA Certificate in Business Accounting BA1 Fundamentals of Business Economics Exam practice quiz. This question bank includes 100 questions covering price, demand, market, firm, and economy. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CIMA BA1 Practice Questions - CIMA Certificate in Business Accounting BA1 Fundamentals of Business Economics Exam

This practice set contains 100 questions from the matching question bank and focuses on price, demand, market, firm, and economy. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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