WorksheetsH1.5 External Factors (PESTEC)
Total questions: 21
Worksheet time: 19mins
An increase in the (a) rate causes borrowing costs to increase, giving people less money to spend.
An increase in (a) means prices are generally rising, and so the cost of living is higher.
Which of these is NOT a consequence of high inflation?
Supplies get more expensive
Workers may expect higher wages
Business will make more profit
People have less disposable income
A fall in (a) tax will mean people pay less to the government from their salary. This means they will have money to spend.
(a) fiscal policy aims to create economic growth through reduced taxation and increased government spending.
A rise in the (a) rate makes a currency stronger, which makes foreign supplies cheaper. However, this makes your products more expensive for foreign consumers.
The number of people willing and able to work, but unable to find a job is know as the (a) rate.
Which of the following is NOT true when unemployment is high?
There is an increase in crime
the government will save money
people have less money to spend
the business can pay lower wages
(a) factors are concerned with changing demographics of the population, changing tastes and beliefs.
(a) policy prevents unfair mergers which would give a firm too much power, and prevents the use of destroyer/predatory pricing.
(a) factors relate to changing attitudes from people as well as changes in weather.
(a) factors refer to the actions of a business that sells similar products or services. For example, if Honda (b) the price of their cars, Kia may have to (c) it.
(a) factors refer to advancement in machinery, (b) , and vehicles. If a business fails to (c) in the best technology, its (d) may fall behind rivals.
Is increasing taxation a political, economic, or social factor?
Political
Economic
Social
If interests rates increase people have to pay (a) each month for their mortgage. Therefore. it makes sense for a business to (b) prices, because people have less disposable (c) .
What does the first E stand for in terms of external factors?
(a)
Which is not an objective (aim) of the private sector?
To maximise profits
To grow
To maximise sales
To raise awareness of their cause
True or False? Flexible working arrangements mean staff are able to work at a time when they are the most productive. This will decrease quality in the organisation as well as lowering morale.
True
False
Environment consists of those factors that affect a business enterprise from outside. External environment includes shareholders, competitors, customers, society, government laws and regulations, policies and technology.
a. Internal Environment
b. Micro Environment
c. Macro Environment
d. External Environment
True or false? The economic cycle is measured in terms of PDG
TRUE
FALSE
Match the following statement with the relevant external factor
Political
The NMW is increased by 10%
Economic
A recession is forecast next year.
Social
The population is becoming more diverse.
Environmental
Consumers look for flights whose carriers offset carbon emissions
Competitive
A similar business launches a new product with better battery life.
