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CIE IGCSE Business Chapter 27 and 28 plus

Total questions: 44

Worksheet time: 28mins

Name
Class
Date
1.

The Business Cycle measures ___ over time.

a)

wealth

b)

inflation

c)

economic growth

2.

Which of the following is not a macroeconomic goal?

a)

low unemployment

b)

rise in the minimum wage

c)

price level stability

3.

The business cycle directly measures which economic goal?

a)

full employment

b)

growth

c)

price stability

4.

Unemployment measures...

a)

the value of all final goods and services produced

b)

an increase in the general price level

c)

the percentage of people looking for work that can't find it

d)

the economic freedom an economy offers

5.

Which of the following is a peak?

a)

A

b)

B

c)

C

d)

D

6.

Which of the following is a recession, or contraction?

a)

A

b)

B

c)

C

d)

D

7.

Which of the following is a trough?

a)

A

b)

B

c)

C

d)

D

8.

Which of the following is an expansion, or recovery?

a)

A

b)

B

c)

C

d)

D

9.

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

a)

Peak

b)

Contraction/Recession

c)

Trough

d)

Expansion/Growth/Recovery

10.
When inflation is high the _______________of the dollar decreases
a)
cost value
b)
purchasing power
c)
importance
d)
validity
11.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
12.

What is inflation?

a)

Increase general price level of goods and services

b)

Increase price level from one private organisation

c)

Decrease general price level of goods

d)

Increase general price level of services

13.

The four stages an economy through over a period of time, as an economy does not grow at a steady rate.

a)

Inflation

b)

Business Cycle

c)

Exchange rate

d)

Economic growth

14.

The total value of output of goods and services in a country in one year.

a)

Economic Growth

b)

Balance of payment

c)

Gross Domestic Product

d)

Real Income

15.

Goods ans services sold from one country to another countries.

a)

Exports

b)

Imports

c)

Tariff

d)

Quota

16.

A change in interest rates by the government or central bank, e.g Indonesian Central Bank

a)

Export policy

b)

Trade policy

c)

Fiscal policy

d)

Monetary policy

17.

Paid directly from incomes e.g. income tax or profit tax.

a)

Indirect taxes

b)

Direct taxes

c)

Import tariff

d)

Export quota

18.

Any change by the government in tax rates or public sector spending.

a)

Monetary policy

b)

Fiscal policy

c)

Direct taxes

d)

Indirect taxes

19.

Which one is NOT the economic objectives?

a)

low inflation

b)

low unemployment

c)

lower level of output

d)

increasing GDP

20.

A recession will lead to fall in demand for all goods and services.

a)

True

b)

False

21.

Which one is NOT monetary policy (changing interest rates)

a)

higher interest on new loans and overdraft increases costs

b)

less new investment

c)

increase in spending on government services or investments in schools

d)

could lead to higher exchange rate

22.

A tax on imports

a)

tariff

b)

import tax

c)

supply

d)

embargo

23.

A limit to the number of imports that may enter a country

a)

tariff

b)

embargo

c)

demand

d)

quota

24.

Rules used to try to limit trade with other countries

a)

embargo

b)

tariff

c)

trade barriers

d)

quota

25.

Which of the following is a benefit of implementing supply-side policies?

a)

Increases employment

b)

Very costly

c)

People are resistant to change

d)

Policies take a long time to implement

26.

Which one of the following is NOT a supply side policy?

a)

The government increasing competition in all industries

b)

The government reducing import controls

c)

The government investing in training and education

d)

The government privatising national industries

27.

True or false.

Companies should take the expectations of the broader community into account when making decisions.

a)

True

b)

False

28.

What is corporate responsibility.

a)

Polluting

b)

Not giving back to the community.

c)

Doing business to meet the needs of the current generation, without harming the ability of future generations.

d)

Business contributions to the community.

29.

Business activities that meet present needs without harming the future are said to be …………………………….

a)

Renewable

b)

Sustainable

c)

Ethical

d)

Profit-making

30.

Which of the following is not an aspect of corporate social responsibility?

a)

Social Cost

b)

Social Benefit

c)

Interest Stakeholders

d)

Price of Goods

31.

Which of the following example of an unethical business practice?

a)

Selling products at competitive prices

b)

Advertising products on television

c)

False advertising of products and services

d)

Payment of overtime for extra work done by workers

32.

The Positive Impact of a business decision on society

a)

Externality

b)

social cost

c)

social benefit

d)

emission

33.

Which is an example of unethical business behavior?

a)

True advertising

b)

Proper disposal of waste

c)

Avoiding paying taxes to the government

d)

Listening to customer complaints

34.

The national government gets most of its money from...

a)

sales tax

b)

property tax

c)

income tax

d)

school tax

35.
The following picture represents which externality?
a)
Private Cost
b)
External Cost
c)
Social Benefit
d)
Private Benefit
36.
The following picture represents which externality?
a)
Social Cost
b)
Social Benefit
c)
Private Cost
d)
External Cost
37.
An external benefit is when...
a)
The consumers are benefited
b)
The society is benefited
c)
The government is benefited
d)
The country is benefited
38.

Diseconomies of Scale result in a lower per unit production cost over the long run

a)

True

b)

False

39.
Some business costs are classified as fixed costs because they
a)
must be paid within a set time
b)
don't change when sales go up or down
c)
are unpredictable and must be estimated
d)
cost all businesses the same amount
40.
One of the main purposes for calculating break-even is to help the business to
a)
determine stock value
b)
prepare an income statement
c)
forecast sales
d)
set selling prices
41.
Which of the following best describes quality?
a)
The service provided to a customer before, during and after purchasing.
b)
Products being made to a high standard to meet customer needs.
c)
A high level of productivity.
42.

A business checks products after they are made. What is this an example of?

a)

Quality Control

b)

Quality Circles

c)

Quality Assurance

43.

When products are checked at each stage of production, what is this an example of?

a)

Quality Control

b)

Quality Circles

c)

Quality Assurance

44.
What is the best methods of improving quality
a)
Expansion
b)
Lowering costs
c)
Staff and Management Training