Y8 Business Studies - C4 Government and Economic Influences

What is one possible advantage of business activity on society?

• Produces useful goods

• Reduces employment

• Creates monopolies

• Increases pollution

What is a possible disadvantage of business activity?

• Creates employment

• Increases living standards

• Improves public infrastructure

• Leads to unsafe working conditions

What is one of the government's economic objectives?

• High unemployment

• Low unemployment

• High inflation

• Economic decline

What happens when inflation rises rapidly?

• Workers' buying power increases

• Standards of living improve

• Businesses can expand easily

• Workers may demand higher wages

What does GDP stand for?

• Gross Domestic Product

• General Domestic Price

• Gross Development Plan

• General Development Product

What is a trade deficit?

• When imports exceed exports

• When there is no trade

• When exports exceed imports

• When exports equal imports

Which policy involves controlling the amount of money in the economy?

• Supply side policy

• Monetary policy

• Fiscal policy

• Trade policy

What is one example of a supply side policy?

• Increasing taxes

• Raising interest rates

• Privatisation

• Reducing competition

Why do governments want to control monopolies?

• To encourage competition

• To increase prices

• To reduce consumer choice

• To promote inefficiency

What is one responsibility of businesses to employees?

• No training

• High wages

• Health and safety at work

• Unfair dismissal