Unit 1 Business Management - Economic Conditions

Influences that relate to the economic activity in a country, region or the world refer to

• Economic components

• Economic countries

• Economic conditions

• Economic counterpart

How many phases are there in the business cycle

• 5

• 4

• 6

• 3

Expansion is what stage in the business cycle

• 4

• 3

• 3

• 1

If wages and salaries are high and business is operating at full capacity then you are at what stage of the business cycle?

• Expansion

• Contraction

• Peak

• Trough

The price charged or paid for the use of money is called...

• the exchange rate

• the lending rate

• the interest rate

• the tax rate

The percentage of income or the value of a good or service is called

• GST

• the interest rate

• the tax rate

• mark up

In a recessionary cycle there is

• evidence of an expanding economy

• businesses will increase production

• increased spending will create profits

• a degree of cost cutting

When the Economy is in a recessionary cycle what is not true

• evidence of an expanding economy

• evidence of a contracting economy

• cost cutting

• consumers are more cautious

What is happening in the Peak stage of the business cycle?

• wages and salaries high

• increased consumer spending

• unemployment falling

• decreasing business investment

What is happening in the trough stage of the business cycle

• business operating at full cycle

• sales and profits rising

• sales and profits falling

• sales and profits at lowest levels