NEW
Font size
WorksheetsSGS Business 1.5.5 The Economy and Business
Total questions: 16
Worksheet time: 8mins
A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.
10%
8.5%
7.5%
6%
What is the unemployment????
decisions to work based on each individuals' valuation of their own work
proportion of younger workers in the labor force
the situation of actively looking for employment but not being currently employed.
person who is simultaneously an income earner,
If a change in income appears permanent such as being promoted to a secure and high paying job, __________________.
then people are likely to consume less.
then people are likely to save more.
then people are likely to consume more.
then people are likely to save less.
Which of following best describes the term interest rate?
The price of one currency against another
The cost of borrowing money or reward for saving money
The value of goods and services bought by consumers
The reward for borrowing money or cost of saving money
Which is true in relation to the rate of inflation? Business costs are:
More likely to increase if the rate of inflation rises
More likely to stay the same if the rate of inflation rises
More likely to increase if the rate of inflation falls
More likely to decrease if the rate of inflation rises
Which of the following businesses is most likely to experience a rise in demand as consumer income falls?
Travel agent
A producer of chocolate
A department store selling discounted goods
A specialist bakery selling luxury products
What is the most likely impact of rising unemployment levels on a business selling luxury goods?
Falling sales and rising profit
Rising sales and falling profit
Falling sales and falling profit
Rising sales and rising profit
What is true of a UK importer of goods from Italy, if the value of the pound becomes weaker against the euro?
Sales increase and profit increases
Sales decrease and profit increases
Sales increase and profit decreases
Sales decrease and profit decreases
A business has borrowed money from a bank with an overdraft. If interest rates rise, the impact on the business will be:
Costs increase and profit decreases
Costs decrease and profit increase
Costs increase and profit increase
Costs decrease and profits decrease
If the government increases the rate of corporation tax, companies are likely to:
Pay more tax and invest more into the business
Pay more tax and invest less into the business
Pay less tax and invest more into the business
Pay less tax and invest less into the business
Which describes the term exchange rate?
The reward for saving money and cost of borrowing money
The sales made from importing goods and services
The profit made from exporting goods and services
The price of one currency against another
What is most likely to be true if the rate of inflation rises sharply? Businesses are:
More likely to to manage rising costs
More likely to reduce selling prices
Less likely to manage rising costs
Less likely to raise selling prices
When an economy becomes weaker, interest rates are often reduced meaning consumers are likely to:
Save more and spend less
Save less and spend more
Save more and spend more
Save less and spend less
Which is true for a UK exporter of goods to Portugal, when the pound becomes stronger against the euro?
Exports will become less expensive
Profits are likely to increase
Exports will become more expensive
Exports sales are likely to increase
Which two are potential advantages to a business which sells luxury products of high levels of employment?
Business costs increase as wages and salaries rise
Increase in sales levels
Fewer potential employees will be available
Consumer incomes will increase
Staff turnover will increase
Which are most likely to be true if interest rates fall for a new business?
Loans become less expensive
Costs may increase
More likely to save money
Less likely to invest
Costs may decrease
