Business studies practice 12.1

Which of these is not a major macroeconomic objective of governments?

• Low and stable inflation

• Increasing profitability of companies

• Full employment

• High and sustainable growth

The four government objectives are low inflation, low unemployment, balance of payments and

• Safe defence spending

• Economic growth

• High interest rates

• Low tax revenue

What type of policy is the use of interest rates to control the economy?

• demand side policy

• fiscal policy

• insurance policy

• monetary policy

Which of the following would be an expansionary fiscal policy (increasing economic growth)?

• lowering income tax

• raising the value of RM

• printing money

• lowering government expenditure (spending)

Which statement would be made by a business that is considered socially responsible?

• "We pollute a little bit to make our product"

• "Our products are made with recycled bottles and cans"

• "We are able to help the community by employing children"

• "The river is contaminated, but our product is free"

The following picture represents which externality?

• Private Cost

• External Cost

• Social Benefit

• Private Benefit

The following picture represents which externality?

• Social Cost

• Social Benefit

• Private Cost

• External Cost

What limits the amount of products imported

• Tariff

• Quota

• Embargo

• Trade ceiling

What is the name of a company that does business and has facilities in many countries?

• World Business

• Multinational Corporation

• World Power

• None of the above

The buying and selling of goods and services within your own country.

• Commerce

• Business

• Sales

• Domestic Trade