CIMAPRA17-BA1-1 Exam - Topic 1 Question 56 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 56
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

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

Aproviding a subsidy for the consumers of the good

Bimposing an indirect tax on the good

Cproviding a subsidy for the producers of the good

Dthe government imposing price controls to reduce the price of the good.

Show Suggested Answer

Suggested Answer: B

by Staci at Jul 29, 2022, 09:39 AM

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Thaddeus

4 months ago

Price controls? That's just gonna create shortages!

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Sina

4 months ago

Subsidies for producers just encourage more production, right?

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Patria

4 months ago

Wait, can a tax really fix this? Seems too simple.

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Alyce

4 months ago

Totally agree, taxes can help reduce consumption!

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Bulah

4 months ago

Imposing an indirect tax is a classic solution for external costs.

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Vicky

5 months ago

I’m confused about the price controls option. I don’t recall it being a good way to address external costs, but I could be wrong.

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Leslie

5 months ago

I feel like we practiced a question similar to this, and the answer was about correcting market failures. I think it was about taxes, so I’m leaning towards B too.

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Marguerita

5 months ago

I’m not entirely sure, but I remember something about subsidies potentially leading to overproduction. So maybe option B is better?

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Catalina

5 months ago

I think imposing an indirect tax on the good might be the right answer since it can help internalize the external costs.

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Cordelia

5 months ago

This seems like a straightforward question about loyalty promotions. I think the Cumulative Promotion is the best option here, since the company wants to encourage sustained engagement over time.

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Margurite

5 months ago

Hmm, I'm a bit unsure about the difference between catalogs, categories, and category sets. I'll need to think this through carefully.

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Yvonne

5 months ago

I'm pretty confident I know the answer to this one. The NIST and SANS frameworks are commonly used for security incident response, so I'll check those options.

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Dong

5 months ago

Okay, I've got this. Based on the detailed description, the answer has to be B - an explosion. That's the only choice that matches all the key details provided.

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