U7 - C3: Economic Trends

What is the primary effect of inflation on the purchasing power of money?

• It increases purchasing power.

• It decreases purchasing power.

• It has no effect on purchasing power.

• It stabilises purchasing power.

During high inflation, what is a common change in consumer behavior?

• Increased savings.

• Decreased spending on non-essential goods.

• Increased investment in luxury items.

• Decreased demand for essential goods.

How has technology impacted modern markets in Aarav's online business?

• It has decreased market competition.

• It has made markets more localised.

• It has increased market efficiency and accessibility.

• It has reduced the need for consumer data.

Which sustainable practice should Daniel's company adopt?

• Using non-renewable resources.

• Implementing energy-efficient processes.

• Increasing waste production.

• Prioritising short-term profits over long-term sustainability.

What is a significant effect of globalisation on local markets?

• Decreased competition from international businesses.

• Increased isolation of local markets.

• Greater access to international products and services.

• Reduced cultural exchange.

Which demographic shift is affecting many societies?

• Decrease in urbanisation.

• Ageing population.

• Increase in birth rates.

• Decline in technological adoption.

What is a common effect of inflation on interest rates?

• Interest rates typically decrease.

• Interest rates remain unchanged.

• Interest rates typically increase.

• Interest rates become unpredictable.

How did Sebastian's shopping behavior change with the new grocery app?

• He became less brand loyal.

• He was less likely to try new products.

• He preferred traditional shopping methods.

• He was more likely to seek convenience and efficiency.

What is a key benefit of implementing sustainable business practices?

• Increased short-term profits.

• Reduced operational costs in the long term.

• Decreased employee satisfaction.

• Limited market reach.

What is a challenge of globalisation for Ella's bakery?

• Reduced access to global markets.

• Increased competition from international companies.

• Decreased consumer choice.

• Limited technological advancement.