Y8 Business Studies - C4 Government and Economic Influences

What are the possible advantages of business activity on society?

• Production of useful goods to satisfy customer wants

• Monopolizing the market

• Low wages for workers

• Increase in pollution

What is the impact of low inflation on the people?

• Their buying power decreases

• They become less productive

• They become more productive

• Their buying power increases

What is the aim of the government on low level of unemployment?

• To increase standards of living

• To decrease standards of living

• To increase national output

• To decrease national output

What represent economic growth?

• Decrease in Gross Domestic Product (GDP)

• Increase in Gross Domestic Product (GDP)

• Increase in inflation.

• Increase in employment level.

What is the balance of payments?

• The difference between the value of exports and imports of a country

• The total value of goods produced in one year

• The total value of imports in a country

• The total value of exports in a country

Which economic policy involves controlling the amount of money in the economy through interest rates?

• Trade policy

• Supply side policies

• Monetary Policy

• Fiscal Policy

What is an example of supply side policies?

• Reducing tax rate

• Increasing training and education

• Reducing bank interest rate

• Decreasing competition

What is the main aim of supply side policies?

• To increase interest rates

• To increase tax rate

• To increase efficiency

• To increase production

What is the main disadvantage of monopolies?

• They lower prices for consumers

• They promote efficiency

• They prevent new firms from starting up

• They encourage competition

What do governments want to protect employees from?

• Unfair competition

• Unfair dismissal

• High tax rate

• High interest rates