Exam Code: CIMAPRO17-BA1-X1-ENG
Exam Name: BA1 - Fundamentals of Business Economics Question Tutorial
Updated: Nov 15, 2024
Q&As: 60
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The following scatter diagram displays the total life expectancy in years on the X axis and GDP per capita (constant 2000 $) on the Y axis, in Country S for the past 40 years. Which of the following statements is true in respect of the graph?
A. A perfect positive linear relationship is shown in the diagram.
B. In most years, the samples shows a clear negative trend in the diagram.
C. There is no correlation between the level of GDP per capita and life expectancy.
D. In some years, the level of GDP per capita and life expectancy moved in opposite directions.
Setting a minimum wage above the equilibrium wage:
A. has no effect on unemployment, and setting a minimum wage below the equilibrium wage results in increased unemployment.
B. results in increased unemployment, and setting a minimum wage below the equilibrium wage has no effect on unemployment.
C. results in decreased unemployment, and setting a minimum wage below the equilibrium wage results in increased unemployment.
D. results in increased unemployment, and setting a minimum wage below the equilibrium wage results in decreased unemployment.
The following table shows the profits of a business and an index of the general price level for 4 years.
How does the level of real (inflation adjusted) profits in 20X4 compare to those of 20X1?
A. + $18m
B. + $12.5m
C. + $3m
D. + $0.6m
What does the term 'equity financing' mean?
A. A company financing a short term cash flow shortage by borrowing from a financial intermediary.
B. A company investing its excess liquidity by purchasing shares.
C. A company selling off some of its tangible assets to pay for debts.
D. A company financing its liquidity deficit by issuing shares.
FILL BLANK
A clothes retailer wants to compute the Pearson's correlation coefficient between the number of shirts sold per day (x) and the number of jackets sold per day (y), across its eight stores (n=8).
If Σx = 256, Σy = 137, Σx² = 14278, Σy² = 4991 and Σxy = 8277, what is the Pearson's correlation coefficient? Give your answer to two decimal places.
A. 0.65
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