IGCSE business studies section 6 MCQ

Which of the following is not an economic objective of the government of a country?

• Economic growth

• Higher inflation

• Lower unemployment

• Health balance of paymenta

The price increase of goods and services over time is known as:

• Inflation

• GDP

• balance of payment

• globalisation

Which stage of the business cycle is characterised by a decline in economic activity?

• Boom

• Growth

• Recession

• Slump

Which two factors are the main elements of a government’s economic policy?

• Interest rates

• Infrastructural improvements

• Tax rates

• Waste collection

How will the cost of borrowing money from banks be affected by an increase in interest rates?

• It will become more expensive

• it will stay the same

• it will become cheaper

• it will depend on the bank

Which of the following is not a type of tax?

• Tariff

• VATT

• Income tax

• Quota

What happens to the cost of imports when the currency of a country depreciates?

• It stays the same

• It becomes more expensive

• It becomes cheaper

• It becomes the same as the price of exports

What is the main aim of pressure groups?

• To take care of environment

• To demonstrate

• To influence government policy and business actions

• To reduce energy consumption

The effect of business activities on unrelated parties is known as:

• Externality

• Opportunity cost

• Cost-benefit analysis

• Globalisation

Business activities that meet present needs without harming the future are said to be:

• Renewable

• Sustainable

• Ethical

• Profit-making