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A2 Business Economics

Total questions: 20

Worksheet time: 25mins

Name
Class
Date
1.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
2.

Most countries try to maintain an inflation rate of ______ per year.

a)

One percent or less

b)

Two to three percent

c)

Four to five percent

d)

Six to seven percent

3.

The _______ considers the weighted averages of a group of consumer goods and services.

a)

Consumer price index

b)

Aggregate supply

c)

Producer price index

d)

Aggregate demand

4.

What is an exchange rate?

a)

The rate at which goods are exchanged between two countries

b)

The price of one nation's currency in terms of another's

c)

How many US dollars you can exchange for RMB at Travelex

d)

The price of goods in terms of a foreign currency

5.

According to the table, what is the Euro equivalent of 1 USD?

a)

1.32 Euros

b)

0.53 Euros

c)

.76 Euros

d)

1.59 Euros

6.

According to the table, what is the USD equivalent of 1 Australian?

a)

0.97 USD

b)

1.32 USD

c)

1.28 USD

d)

1.03 USD

7.

If the AUD were to appreciate in the relation to the USD, what effect would this have?

a)

Australian imports become cheaper.

b)

Australian exports become more expensive to American buyers.

c)

Australian imports become more expensive.

d)

Australian exports become less expensive to American buyers.

8.

What is the aim of contractionary monetary policy?

a)

Stimulate the economy

b)

Encourage people to buy more, increasing inflation

c)

Lower demand and reduce inflation

d)

Raise employment levels

9.

Which of these is a fiscal policy tool?

a)

Interest rates

b)

Exchange rate

c)

Money supply

d)

Taxation

10.

The graphs show how consumer prices and real GDP changed in a country between 1995 and 2005. Which conclusion may be drawn from the graphs?

a)

Living standards remained roughly constant between 1995 and 2005.

b)

The level of GDP was lower in 2005 than in 2000.

c)

The country experienced continuous economic growth between 1995 and 2005.

d)

The price level fell between 2000 and 2003.

11.

What is a tariff?

a)

Tax on imported goods

b)

To stop trading with a business or country

c)

A limit on imported goods

12.

A quota is a limit on an imported good. Which is an example of a quota helping local farmers?

a)

Taxing corn from another country.

b)

Allowing less corn to be bought from other countries' farms.

c)

To stop buying corn from another country

13.

Russian government found deadly chemicals in German hamburgers. What will keep Russians safest?

a)

An embargo against German hamburger meat producers

b)

A tariff on German hamburgers

c)

A quota on German hamburgers

d)

Free trade with German hamburger producers

14.

What does BRICS stand for?

a)

Brazil, Russia, Indonesia, China, South America

b)

Brazil, Russia, India, China, South America

c)

Brazil, Russia, India, China, South Africa

d)

Brazil, Romania, India, China, South America

15.
Statement1: In a boom high consumer demand which is greater than supply creates excess demand which leads to inflation.. Statement2: Interest rates are set by the monetary Policy Committee (MPC) at the Bank of England.
a)
Statement1 True: Statement 2 True
b)
Statement1 True: Statement2 False
c)
Statement 1 False: Statement2 True
d)
Statement1 False: Statement 2 False
16.
Statement1: Emissions legislation could be seen as both Legal and Environmental. Statement2: Corporation tax is a tax on business revenue.
a)
Statement1 True: Statement 2 True
b)
Statement1 True: Statement2 False
c)
Statement 1 False: Statement2 True
d)
Statement1 False: Statement 2 False
17.

What are the six elements of PESTLE?

a)

Peace, Elements, Search, Tape, Legal, and Environment

b)

Power, Environment, Science, Teaching, Legal, and Education

c)

Paper, Element, Savings, Trust, Labels, and Entry

d)

Political, Economic, Social, Technological, Legal, and Environmental

18.
Increased tax rates is are a
a)
Strength
b)
Weakness
c)
Opportunity 
d)
Threat 
19.
SWOT and PESTEL are analytical tools that help identify the key external and internal factors that should be taken into account in order to achieve success in a project or initiative
a)
True
b)
False
20.
SWOT stands for:
a)
Sudden Weaknesses, Outstanding Threats 
b)
 Strengths Weakness Opportunity Threats
c)
Social Ways of Overcoming Threats 
d)
Strengths Weakness Outsiders Threats