External influences on business 1

Which of the following is a characteristic of an upswing in the economic cycle?

• Decreased consumer spending

• Increased unemployment

• Increased business investment

• Lower profits for businesses

Which of the following is a characteristic of a downswing in the economic cycle?

• Increased consumer spending

• Decreased unemployment

• Lower profits for businesses

• Increased business investment

Which of the following is an example of a fiscal policy the government might use?

• Lowering interest rates

• Increasing government spending

• Deregulating an industry

• Encouraging environmental awareness

Which of the following is an example of a monetary policy the RBA might use?

• Increasing taxes

• Decreasing government spending

• Lowering interest rates

• Promoting health consciousness

What is the main purpose of microeconomic reform?

• To decrease competition

• To increase government regulation

• To increase competition and efficiency

• To discourage technological innovation

The growing awareness of health and wellness has primarily led to:

• Decreased demand for organic food

• Increased demand for organic food

• Decreased demand for fitness products

• Increased demand for unhealthy products

Increasing concern for the environment has led to:

• Businesses increasing waste production

• Businesses adopting sustainable practices

• Decreased demand for renewable energy

• Businesses ignoring environmental regulations

Australia's aging population has created opportunities for businesses in:

• The fast-food industry

• The aged care sector

• The toy industry

• The entertainment industry

The rise of e-commerce has allowed small businesses to:

• Only sell locally

• Reach a global customer base

• Avoid using technology

• Decrease their marketing efforts

Automation has primarily increased what in manufacturing and other industries?

• Labor costs

• Efficiency

• Job security

• Customer satisfaction