A2 Business U7 Pestle 1

Statement1: Monetary policies focus on money supply and interest rates. Statement2: A fall in inflation still means that the prices are rising.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: In a boom high consumer demand which is greater than supply creates excess demand which leads to inflation.. Statement2: Interest rates are set by the monetary Policy Committee (MPC) at the Bank of England.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: In a recession business should diversify into new markets.. Statement2: Capital gains tax is paid when companies sell or dispose of assets that they have made a profit from.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: Supply of pounds is caused by greater demand for foreign goods.. Statement2: Corporate Social Responsibility involves companies achieving success whilst at the same time respecting and positively impacting its stakeholders.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: Fiscal policies focus mainly on taxation. Statement2: Cost push inflation can be caused by a reduction in taxes, increased consumer confidence or reduced interest rates.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: In a recovery demand increases which leads to improving business profits.. Statement2: Emissions legislation is just Environmental on PESTLE

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: In a slump deflation may occur.. Statement2: In a boom all firms will be over capacity.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: Demand for the pound is caused by speculators believing the price of the pound will rise in the future.. Statement2: in a recovery there is quickly rising demand which leads to increased investment and business confidence.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: If the exchange rate falls exports will be more expensive.. Statement2: in the business cycle a slump follows a recovery.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False

Statement1: Cost push inflation is where the cost of raw materials, labour costs, indirect taxes rise or there is a fall in the exchange rates causing business costs to rise. This is then passed on to customers in the form of higher prices.. Statement2: Interest rates are the same at all banks.

• Statement1 True: Statement 2 True
• Statement1 True: Statement2 False
• Statement 1 False: Statement2 True
• Statement1 False: Statement 2 False