External Environment

Goods which see a decrease in demand when consumer income rises

• Inferior goods

• Luxury goods

Long term objective of an organisation to make money

• Demand

• Supply

• Profit motive

Which of the following causes a fall in the value of money over time?

• Increased taxation rates

• Deflation

• Falling interest rates

• Inflation

The tax rate increases as the amount to be taxed increases

• Progressive

• Regressive

• Proportional

Government spend money raised by Taxation and borrowing on variety of items to influence the level of aggregate demand in an economy. This is known as

• Inflation

• Fiscal Policy

• Monetary policy

the price of one currency expressed in terms of another currency

• Inflation

• Interest Rates

• Taxation

• Exchange Rates

Following are classed as Indirect Taxes:

• Corporation Tax

• Inheritance Tax

• VAT

• Import duties

A weak currency makes imports more expensive but exports cheaper

• True

• False

Demand is the quantity that consumers are prepared to buy

• True

• False

Supply will decrease as prices rise

• True

• False