Pass the CIMA Certificate BA1 Questions and answers with ExamsMirror

Imperfect market information may prevent the market working efficiently

Trading can only take place at equilibrium prices in a market economy

A fall in the relative price of a good tends to attract consumers to buy that good instead of other goods

In a market economy some essential goods may not be produced.

A lack of consultation of shareholders by directors

Personal goals are pursued by directors that are inconsistent with the welfare of shareholders

Shareholders don't always know what management is doing

Directors get paid too much for the job they do

A merit good

An external social cost

A diseconomy of scale

A public good

Restaurant cars in its trains

Smoking and non-smoking carriages

Reserved seats for disabled passengers

Discounted prices for season-ticket holders

A fall in the price of margarine

A fall in the cost of vegetable oils

A successful advertising campaign by butter producers

A fall in the price of bread

The demand curve would shift to the right, the equilibrium price would rise and there would be an increase in supply

The demand curve would shift to the left, the equilibrium price would fall and there would be a contraction in supply

The demand curve would shift to the right, the equilibrium price would rise and there would be an extension in supply

The demand curve would shift to the left, the price would fall and there would be a decrease in supply

in small firms

when share ownership is highly concentrated

in large, high technology companies

in not-for-profit organizations

they produce homogeneous products

there are no barriers to entry into these markets

production costs are the same for all producers

of the absence of economies of scale

is highly price elastic

is highly price inelastic

has unit price elasticity

is perfectly price elastic

(i), (ii) and (iii) only

(ii), (iii) and (v) only

(i), (ii) and (v) only

(i), (iv) and (vi) only