Free CIMA CIMAPRA17-BA1-1-ENG Exam Questions

Become CIMA Certified with updated CIMAPRA17-BA1-1-ENG exam questions and correct answers

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Total 471 Questions | Updated On: Mar 13, 2026

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Question 1

If the production of a good involves an external social cost, resource allocation could be improved by:

A : oviding a subsidy for the consumers of the good

B : posing an indirect tax on the good

C : oviding a subsidy for the producers of the good

D : government imposing price controls to reduce the price of the good.

Answer: B

Question 2

All of the following would lead to fall in the circular flow of national income except which one ?

A : fall in business investment

B : fall in personal savings rates

C : reduction in the level of government expenditure

D : rise in the marginal propensity to save

Answer: D

Question 3

PlusTech is a video games company with staff based in Los Angeles, California, London, UK, and Berlin, Germany. PlusTech currently employs 20 people to develop and market its games, while the distribution is

handled by RPGInternational, a separate company.

Why should PlusTech adopt multiple business structures in order to succeed in the video games industry?

Select ALL that apply.

A : videogames industry is international, therefore the company should adopt the model of a virtual organisation

B : small number of staff the company has means it has to form a strategic alliance with RPGInternational in order to distribute its games

C : company needs to be technologically advanced so as to remain a market leader in the industry

D : company has no direction, therefore does not stick to one particular business model

E : company does not have the revenue to increase its staff numbers

F : company is at risk of not succeeding if it does not adopt various business models

Answer: A,B

Question 4

A typical supply curve of a good shows:

A : quantities of the good firms actually sell at different possible prices

B : quantities of the good firms are prepared to supply at different possible prices

C : fferent possible equilibrium prices

D : antity supplied varying inversely with price

Answer: B

Question 5

Which of the following would result from a depreciation in the exchange rate for a country's currency?

i. A fall in the foreign exchange price of that country's exports.

ii. A rise in the foreign exchange price of that country's imports.

iii. A rise in production costs for businesses using imported inputs.

iv. A worsening in that country's terms of trade.

v. A fall in the domestic prices of that country's imports.

vi. A rise in the domestic price of that country's exports.

A : (i), (ii) and (iv) only

B : (i), (iii) and (iv) only

C : (ii), (v) and (vi) only

D : (iv), (v) and (vi) only

Answer: B

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Total 471 Questions | Updated On: Mar 13, 2026

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