External Influences

In which two of the following situations is a business most likely to increase its prices? Select two answers:

• Interest rates are rising

• Employment levels are falling

• Interest rates are falling

• Unemployment levels are rising

• Employment levels are rising

The economic climate can influence business activity. Which two of the following businesses are most likely to experience a decrease in demand as consumer incomes rise? Select two answers:

• A budget gym

• A designer clothes store

• A new car dealership

• A discount supermarket

• An upmarket restaurant

Changes in which external influence has meant that UK businesses have to pay employees the national minimum wage?

• Technology

• Economic climate

• Legislation

• Changes in lifestyle

When the economic climate is weak, businesses which are experiencing a fall demand for their products might:

• Reduce prices and spend less on product development

• Reduce prices and spend more on product development

• Increase prices and spend less on product development

• Increase prices and spend more on product development

Which of the following best describes the term economic climate?

• Factors inside the business that influence its activities

• The measurement of whether the production and consumption of goods is strong or poor in a specific country or region

• Government rules and regulations that affect business activity

• Buying and selling goods electronically

As unemployment levels fall, in order to recruit the best staff, businesses might respond by:

• Decreasing wage rates to reduce costs

• Decreasing wage rates to reduce profit levels

• Increasing wage rates to increase staff retention

• Increasing wage rates to lower staff retention

When the economic climate is strong, businesses that have high demand for their products are likely to:

• Hire fewer staff and invest more

• Hire fewer staff and invest less

• Hire more staff and invest more

• Hire more staff and invest less

Changes in which of the following external influences is most likely to have led to the development of online businesses such as travel agents?

• Technology

• Interest rates

• Legislation

• Exchange rates

Rising inflation is an example of a change in:

• Legislation

• Technology

• Government taxation

• The economic climate

Legislation designed to reduce landfill aims to encourage businesses to:

• Decrease their levels of recycling and send more to landfill

• Decrease their levels of recycling and send less to landfill

• Increase their levels of recycling and send more to landfill

• Increase their levels of recycling and send less to landfill