BEC CPA REAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS 2025// ALL YOU NEDD TO PASS
CPA BEC EXAM
Demand Curve Shift Upward (direct relationship-positive shift) - (answer)The price
of subsitute goods, expectations of price changes, income for normal goods, and
extent of market
Demand Curve Shift Downward (inverse relationship-neg. shift) - (answer)The
price of complement good, income for inferior goods, and consumer boycotts
SWOT analysis - (answer)strengths, weaknesses, opportunities, threats
Three common measures of price inflation: - (answer)1. The Consumer Price Index
(CP)
2. The Producer Price Index (PPI)
3. The GDP Deflator
Okun's law - (answer)Provides a general rule of thumb showing how economic
growth rates faster than average often result in reductions in unemployment
Product differentiation strategies - (answer)seek to make the demand for a firm's
products more inelastic.
,Transfer pricing - (answer)is the process for setting prices that are charged for the
transfer of goods or services between related parties such as departments of a
large entity.
Full employment implies that - (answer)there frictional and structural
unemployment, but not cyclical unemployment.
The consumer price index (CPI) - (answer)is a common measure of inflation. It
compares the price of goods and services in a base year to the price of the same
goods and services at a later year. The CPI is commonly used to convert figures
not readily comparable across years into figures that are more comparable.
The phases of the business cycle are - (answer)expansion, peak, contraction (ie,
recession), and trough.
Peaks are - (answer)usually characterized by a lack of available labor and capital,
which results in a deceleration of growth. Output is at maximum and
unemployment is as low as possible—or at the "natural" rate.
Tight labor markets and lack of excess capacity often result in - (answer)the
bidding up of wages and prices, leading to an acceleration of inflation.
A change in account balances will always be measured as - (answer)(the current
balance - the prior balance), with a positive result indicating an increase and a
negative result a decrease.
, % changes for account balances = - (answer)(Current balance - prior balance) /
prior balance.
Transportation costs would exist - (answer)even in the absence of government.
There are three common measures of price inflation: - (answer)consumer price
index, producer price index and GDP deflator.
Deflation - (answer)a decrease in the general level of prices and inflation rate is
below zero
Collusive pricing - (answer)results when competing suppliers agree that they will
not compete on the basis of price, setting a uniform price to be charged by all
suppliers (conspire). This enables the suppliers to establish higher than market
prices.
Price floor - (answer)a minimum price for a good or service
price ceiling - (answer)a maximum price that can be legally charged for a good or
service
Structural unemployment - (answer)represents a mismatch between the skills of
workers and the needs of the labor market. This usually occurs due to
technological advances that change or eliminate the need for the specific skills
many workers possess.
DETAILED ANSWERS 2025// ALL YOU NEDD TO PASS
CPA BEC EXAM
Demand Curve Shift Upward (direct relationship-positive shift) - (answer)The price
of subsitute goods, expectations of price changes, income for normal goods, and
extent of market
Demand Curve Shift Downward (inverse relationship-neg. shift) - (answer)The
price of complement good, income for inferior goods, and consumer boycotts
SWOT analysis - (answer)strengths, weaknesses, opportunities, threats
Three common measures of price inflation: - (answer)1. The Consumer Price Index
(CP)
2. The Producer Price Index (PPI)
3. The GDP Deflator
Okun's law - (answer)Provides a general rule of thumb showing how economic
growth rates faster than average often result in reductions in unemployment
Product differentiation strategies - (answer)seek to make the demand for a firm's
products more inelastic.
,Transfer pricing - (answer)is the process for setting prices that are charged for the
transfer of goods or services between related parties such as departments of a
large entity.
Full employment implies that - (answer)there frictional and structural
unemployment, but not cyclical unemployment.
The consumer price index (CPI) - (answer)is a common measure of inflation. It
compares the price of goods and services in a base year to the price of the same
goods and services at a later year. The CPI is commonly used to convert figures
not readily comparable across years into figures that are more comparable.
The phases of the business cycle are - (answer)expansion, peak, contraction (ie,
recession), and trough.
Peaks are - (answer)usually characterized by a lack of available labor and capital,
which results in a deceleration of growth. Output is at maximum and
unemployment is as low as possible—or at the "natural" rate.
Tight labor markets and lack of excess capacity often result in - (answer)the
bidding up of wages and prices, leading to an acceleration of inflation.
A change in account balances will always be measured as - (answer)(the current
balance - the prior balance), with a positive result indicating an increase and a
negative result a decrease.
, % changes for account balances = - (answer)(Current balance - prior balance) /
prior balance.
Transportation costs would exist - (answer)even in the absence of government.
There are three common measures of price inflation: - (answer)consumer price
index, producer price index and GDP deflator.
Deflation - (answer)a decrease in the general level of prices and inflation rate is
below zero
Collusive pricing - (answer)results when competing suppliers agree that they will
not compete on the basis of price, setting a uniform price to be charged by all
suppliers (conspire). This enables the suppliers to establish higher than market
prices.
Price floor - (answer)a minimum price for a good or service
price ceiling - (answer)a maximum price that can be legally charged for a good or
service
Structural unemployment - (answer)represents a mismatch between the skills of
workers and the needs of the labor market. This usually occurs due to
technological advances that change or eliminate the need for the specific skills
many workers possess.
