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WorksheetsLO5 - Y10 VCert
Total questions: 15
Worksheet time: 8mins
If the rate of VAT increased from 20% to 25%, business costs would...
Increase because stock and raw materials from suppliers would become more expensive
Decrease Increase because stock and raw materials from suppliers would become cheaper
What is VAT?
An indicator which shows how many people are employed in a country
A tax paid on goods and services
A type of bank loan
A tax paid on income
An increase in disposable income in the UK would mean that consumer spending would...
Decrease because people would have less money
Increase because people would have more money
Corporation Tax is paid by...
Limited Companies
Sole traders
Partnerships
All of the above
Sole traders must pay
Income tax
Corporation tax
Sole trader tax
An increase in competition can mean that business costs have to...
Decrease
Increase
Stay the same
Which of these changes in the external environment would have the most POSITIVE impact on businesses...
An increase in VAT from 20% to 25%
A decrease in interest rates from 5% to 2.5%
An increase in the rate of Income Tax from 20% to 25%
An increase in interest rates from 1.5% to 5% might mean that... (choose 2 answers)
Consumers spend more because loans become cheaper
Consumers spend less because loans are more expensive and they would rather keep money in the bank
Businesses are less likely to invest in growth because loans are more expensive
Businesses are more likely to invest in growth and expansion because loans become cheaper
If unemployment in a country is high this means that the average level of disposable income consumers have will…
Increase
Decrease
If inflation is rising this means that…
The price of goods and services stays the same
The price of goods and services is increasing slower
the price of goods and services is falling
The price of goods and services is increasing quicker
If disposable income is falling which types of retailer are likely to see an increase in revenue?
Home Bargains
Flannels
Curry’s
Hotel Chocolat
If disposable income is rising which of the following are consumers more likely to buy
Own brand products such as Tesco Value
Second hand products from Vinted
New technology such as smart watches
Clothes from Primark
If income tax rises what is the likely impact on consumer disposable income?
Increase
Decrease
What is disposable income?
Income that is spent on taxes to the government
The amount a consumer is paid by their employer
The amount of money a consumer has left when they have paid their taxes
Which two of the following changes in the economy are likely to result in a decrease in sales for a retail business
Increase in interest rates
An increase in disposable income
An increase in income tax
An increase in the level of employment
