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3.7.4-3.7.5 AQA Business A level Revision

Total questions: 51

Worksheet time: 35mins

Name
Class
Date
1.

What does GDP stand for?

a)

Gross Domestic Product

b)

General Domestic Product

c)

Global Domestic Product

d)

Government Domestic Product

2.

What is the definition of gross domestic product?

a)

The value of all goods and services produced within a country's borders in a given year

b)

The total value of all goods and services consumed within a country in a given year

c)

The value of all goods and services imported and exported by a country in a given year

d)

The total value of all goods and services produced and consumed by a country in a given year

3.

What happens to GDP if a country imports a product?

a)

It does not affect the country's GDP

b)

It increases the country's GDP

c)

It decreases the country's GDP

d)

It depends on the value of the imported product

4.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
5.

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

a)

Demand-pull inflation

b)

Cost-push inflation

c)

Demand-push inflation

d)

Cost-pull inflation

6.
What causes cost push inflation
a)

An increase in demand for goods and services

b)

An increase in supply

c)

A rise in production costs passed on to consumers

d)

A fall in the price of imports

7.

Which type of interest rate is generally considered to be riskier?

a)

fixed

b)

variable

8.

If the UK Pound increases in value compared to other currencies, it has

a)

depreciated

b)

appreciated

9.

A UK exporter would benefit from :

a)

a stronger pound £

b)

a weaker pound £

10.

If Inflation rises by 5% and average incomes (wages) rise by 3% then :

a)

the real rate of inflation = 8%

b)

the real rate of inflation = 3%

c)

the real rate of inflation = 2%

11.

The Business Cycle describes :

a)

a popular form of transport to the office

b)

up and downs of interest rates

c)

up and downs of economic growth

d)

up and downs of inflation rate

12.

The Recovery (upturn) phase =

a)
b)
c)
13.

The Boom phase =

a)
b)
c)
14.

A business can pass-on the extra cost of inflation, by raising prices if :

a)

demand is price elastic

b)

demand is price inelastic

15.

The UK Pound appreciates in value to £1 = 1.50 Euros. How much is the 60 pence tin of beans in Euros ?

a)

0.9 Euros

b)

0.40 Euros

c)

9 Euros

d)

4 Euros

16.

If Interest rates rise :

a)

Consumers spend more and save less

b)

Loan repayments become cheaper

c)

The Pound will usually fall in value

d)

The Pound will usually rise in value

17.

Monetary Policy relates to decisions about...

a)

Interest rates & taxes

b)

Taxes & government spending

c)

Interest rates & the money supply

d)

Government spending & the money supply

18.
An example of expansionary fiscal policy would be
a)
cutting taxes.
b)
cutting government spending.
c)
cutting production of consumer goods.
d)
cutting prices of consumer goods.
19.
Fiscal Policy is the means by which the government keeps the economy stable through taxes and programs provided to the people.
a)
True
b)
False
20.

Corporation Tax is a tax on

a)

Goods and Services

b)

Subsidies

c)

Environment

d)

Business Profits

21.

What does it mean when people say the £ is strong against the Euro?

a)

The euro buys less pounds

b)

The euro buys more pounds

c)

The pound buys less euros

d)

The pound buys more euros

22.

Why do businesses not want a strong pound?

a)

Their imports are cheaper

b)

Their exports are more expensive

c)

Their exports are cheaper

d)

Their imports are more expensive

23.

Why do businesses not want a weak pound?

a)

Their imports are cheaper

b)

Their exports are more expensive

c)

Their exports are cheaper

d)

Their imports are more expensive

24.

Which of following is most likely to occur as interest rates fall?

a)

Sales of luxury products increase

b)

Sales of essential products increase

c)

Sales of luxury products decrease

d)

Sales of essential products decrease

25.

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

26.

Exports are...

a)

goods and services that are purchased from overseas businesses

b)

goods and services that are exported to overseas governments

c)

goods and services that are sold domestically to the household sector

d)

goods and services sold by local businesses to overseas consumers

27.

Which of these statements are the advantages of Globalisation

Hint: There is more than one correct answer

a)

Brand awareness is increased

b)

Communication is harder

c)

Market Share is increased

d)

Dealing with different Currency is difficult

28.

Which of these statements are NOT an advantages of Globalisation

Hint: There is more than one correct answer

a)

Working across Different Time Zones

b)

Communication is harder

c)

Market Share is increased

d)

You gain more profit

29.

Globalisation means a business will have more competition

a)

True

b)

False

30.

Globalisation can be harmful on the worlds community and environment

a)

True

b)

False

31.

Globalisation is a method of Business Growth

a)

True

b)

False

32.

What is the correct term for large companies that operate all over the world?

a)

Global Business

b)

Multinational Corporations

c)

Multinationals

d)

Big Firm

33.

Which do you think are real reason why most people don't buy fairtrade products?

a)

They don't want to help people

b)

They can be more expensive

c)

They don't like the packaging

d)

They think the products are lower quality

34.

Which one of the following is a cause of globalisation

a)

Firms experiencing diseconomies of scale

b)

An increase in tariffs

c)

A decrease in the number of global trade blocks

d)

containerisation

35.

Which method of protection raises revenue for the government?

a)

domestic subsidies

b)

embargo

c)

quota

d)

tariff

36.
An import quota is a
a)
tax on import quantities above the legal limit.
b)
way to increase tariff revenues for the exporting country.
c)
legal limit on the amount of a good that can be imported into a country.
d)
legal incentive for members of WTO to increase their exports of a good or service.
37.

Tariffs are used to protect “Infant Industries”

a)

True

b)

False

38.

What is PROTECTIONISM?

a)

economic policy of restricting imports from other countries

b)

economic policy of restricting exports from other countries

c)

economic policy of imports from other countries

d)

economic policy of exports from other countries

39.
A means of preventing a foreign product or service from freely entering a nation's territory.
a)
trade surplus
b)
trade embargo
c)
trade barriers
40.
An association of 12 member nations of southeast Asia to promote economic growth, free trade and economic collaboration between member nations.
a)
ASEAN
b)
EU
c)
NAFTA
41.

Which of the following statements is true in relation to UK legislation?

a)

Product descriptions must be true, accurate and not misleading

b)

Employers do not have to pay the national minimum or living wage

c)

Customers cannot reject a falsely described product once purchased

d)

Gender is not a protected characteristic of the Equality Act (2010)

42.

Which law would be broken if an employee refused to wear safety equipment provided by the business?

a)

Equality Act (2010)

b)

Health and Safety at Work Act (1974)

c)

Consumer Rights Act (2015)

d)

Trades Description Act (1968)

43.

Which of the following laws prevents employees being discriminated against on the basis of characteristics such as gender and race?

a)

Equality Act (2010)

b)

Health and Safety at Work Act (1974)

c)

Consumer Rights Act (2015)

d)

Trades Description Act (1968)

44.

What is the name of the legally binding agreement that every employer must offer it's employees?

a)

Employee Protection Contract

b)

Minimum Wage Agreement

c)

Contract of Employment

d)

Health and Safety Agreement

45.
What is the purpose of the trade descriptions act?
a)
Putting an end to unfair trade
b)
Putting an end to false advertisement
c)
Putting an end to fair trade
d)
Outlining how trade should be conducted
46.
What are the three main areas of legislation that affect business?
a)
Employment law
b)
Payment law
c)
Consumer protection
d)
Competition law
47.

Examples of emerging economies can be found in the acronym: 'B.R.I.C.S'.

This stands for:

_____, _____, _____, ____ and ____ ______.

(a)  

48.
Selling goods and services to another country is considered?
a)
Exporting
b)
Importing
49.

The Internet has helped small businesses compete in global markets because it ________

a)

allows them to establish a physical presence in each country

b)

avoids transactions involving foreign exchange

c)

reduces entry costs

d)

eliminates price controls

50.

Which of the following are reasons for trading internationally?

a)

Economies of scale

b)

Easy to trade internationally

c)

Access to new markets can only sale one product

d)

dont have to pay tax

51.

Define emerging markets.

a)

Countries with established economies and stable industrialization.

b)

Countries with declining economic growth and industrialization.

c)

Countries in the process of rapid industrialization and economic growth

d)

Countries with stagnant economies and slow industrialization.