Economic Influences

Which of the following is a feature of a weak economic climate?

• High levels of consumer spending

• Low levels of consumer spending

• High levels of employment

• Low levels of unemployment

Which of the following demonstrates the impact of a weak pound on a UK business that imports raw materials and exports finished goods?

• Imported raw materials dearer and exported finished goods cheaper

• Imported raw materials cheaper and exported finished goods cheaper

• Imported raw materials dearer and exported finished goods dearer

• Imported raw materials cheaper and exported finished goods dearer

Which of following is most likely to occur as interest rates fall?

• Sales of luxury products increase

• Sales of essential products increase

• Sales of luxury products decrease

• Sales of essential products decrease

The number of people out of work is called:

• Inflation

• Unemployment Rate

When prices go up:

• Inflation

• Income Risk

According to the table, what is the Euro equivalent of 1 USD?

• 1.32 Euros

• 0.53 Euros

• .76 Euros

• 1.59 Euros

According to the table, what is the USD equivalent of 1 Australian?

• 0.97 USD

• 1.32 USD

• 1.28 USD

• 1.03 USD

What is the aim of contractionary monetary policy?

• Stimulate the economy

• Encourage people to buy more, increasing inflation

• Lower demand and reduce inflation

• Raise employment levels

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: Emissions legislation could be seen as both Legal and Environmental. Statement2: Corporation tax is a tax on business revenue.

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