Worksheets1.5.4 The Economy and Business (G.C.S.E)
Total questions: 13
Worksheet time: 7mins
Economic factors that affect a business include:
Stakeholders
Unemployment rates
Inflation
Changes in Consumer Income
Low unemployment rates mean that:
consumers have more money to spend
demand for luxury products will be low
consumers have lower disposable incomes
Inflation is best described as:
the number of people who are willing and able to work
all those who have an interest in the running of a business
a general rise in prices or the cost of living
an increase in demand for a particular product
Inflation is good for businesses
True
False
Interest rates is how much the pound is worth in euros
True
False
High rates of interest mean it’s more expensive to take out a loan from the bank
True
False
Which one of the following is NOT an example of taxation
VAT
Corporation Tax
Profit
VAT stands for
value asset tax
value and time
value added tax
If interest rates are high, consumers' disposable income will be increased
True
False
A rise in the value of a country's currency is called appreciation
True
False
Which of the following statements is TRUE
if a country’s currency is appreciating then it is bad for a business that exports, as its products will become more expensive for foreign companies
if a country's currency appreciates then it is good for consumers, as prices of imports will decrease and they can get different and cheaper goods and services
if a country's currency appreciates then it is good for local businesses, as they will be able to compete better against cheaper imports
Fluctuations in exchange rates cause uncertainty in business and will impact on business decision-making
True
False
It is ok for businesses to ignore external factors, as they do not have much of an impact on their business.
True
False
