Theme 2

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

• Tax

• Exchange

• 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

In a boom high consumer demand which is greater than supply creates excess demand which leads to inflation

• True

• False

Interest rates are set by the monetary Policy Committee (MPC) at the Bank of England.

• True

• False

Exports are...

• goods and services that are purchased from overseas businesses

• goods and services that are exported to overseas governments

• goods and services that are sold domestically to the household sector

• goods and services sold by local businesses to overseas consumers