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WorksheetsWeek 5 part one summary sheet questions
Total questions: 1
Worksheet time: 16mins
Which of the following is NOT a benefit of multinationals to a host country?
Increase in income and employment
Transfer of technology
Exploitation of less developed countries
Improvement in human capital
What is one of the drawbacks of multinationals for a host country?
Increase in exports
Environmental damage
Enterprise development
Increase in tax revenue
How do multinationals contribute to the foreign currency reserves of a host country?
By paying low wages
By increasing tax revenue
By increasing exports
By repatriating profits
What is a concern related to the accountability of multinationals?
They provide training for their workers
They are often involved in environmentally destructive industries
They may be able to evade laws in countries with weak or corrupt governments
They help improve public services by paying taxes
What is the role of governments in relation to public services?
To decrease the range of public services
To provide a range of public services
To privatize all public services
To ignore the provision of public services
Which of the following is NOT listed as a public service in the document?
Social security
Health
Retail
Defence
How does government spending influence businesses?
It has no impact on businesses
It is generally unwelcomed by businesses
It is generally welcomed by businesses and can lead to benefits such as more jobs
It only benefits the government itself
What can be a consequence of constraining levels of public spending?
Increased demand for luxury goods
Higher income for consumers
Negative impact on businesses due to factors like funding cuts
Expansion of government projects
What type of tax do sole traders and partnerships pay?
Corporation tax
Income tax
Indirect tax
Fiscal tax
What is likely to happen if income tax is increased?
There is more spending in the economy
Businesses will expand production
There is less spending in the economy
Foreign businesses will be attracted to the country
What is a potential effect of lowering corporation tax according to the document?
Businesses are likely to reduce reinvestment and dividends
It will discourage foreign businesses from locating in the country
Jobs will be created and living standards will improve
It will lead to an increase in public spending
What is one of the roles of government in providing a legal framework for businesses to operate in?
To ensure all businesses have equal market share
To prevent businesses from meeting the needs of stakeholders
To protect consumers from exploitation and ensure fair business practices
To assist businesses in price fixing and market sharing
Which of the following is an example of anti-competitive practice?
Offering better customer service
Price fixing
Encouraging innovation
Improving product quality
Why is competition considered good for the economy?
It leads to higher prices for all products
It reduces the variety of products available to consumers
It encourages enterprise and efficiency, and creates a wider choice for consumers
It allows dominant firms to control the market
What does competition in the market encourage businesses to do?
Charge higher prices to cover costs
Reduce the quality of goods and services
Improve the quality of goods and services
Limit the choice of products for consumers
What is the simplest way for a company to gain a high market share according to the text?
By engaging in predatory pricing
By offering low prices for all
By limiting innovation
By reducing the number of products they sell
What is one way governments can promote competition among businesses?
Introduce pro-competitive legislation
Increase barriers to entry
Encourage monopolies
Limit the growth of small firms
What is the term used to describe government actions that restrict international trade to benefit domestic industries?
Globalization
Liberalization
Protectionism
Free trade
Which of the following is NOT a purpose of environmental legislation by governments?
Minimizing waste and pollution
Forcing businesses to close until problems are solved
Protecting consumers from exploitation
Addressing global warming concerns
What is a trade bloc?
A single country's trade strategy
A group of countries within the same geographical region agreeing to reduce or remove trade barriers
An international organization that enforces trade laws
A tariff imposed on imported goods
Which of the following is an example of a trade barrier?
Subsidies
Deregulation
Free trade agreements
Globalization
What is the main goal of the European Union (EU) as a trading bloc?
To protect jobs in member countries
To create economic and political integration among the European countries
To establish a common currency for all countries in the world
To enforce strict environmental regulations on member countries
What is a loan?
A) A long-term financial investment
B) Money borrowed from the bank
C) A payment made by the government
D) A short-term financial obligation
What is likely to happen when interest rates are high?
A) It is cheaper to borrow money
B) Demand in the economy is likely to increase
C) Higher interest rates will reduce profits for businesses
D) Businesses are more likely to invest in capital goods
What is the purpose of monetary policy according to the text?
A) To increase the disposable income of homeowners
B) To control the production of capital goods
C) To control the economy using interest rates
D) To ensure that businesses invest in new machinery
Which group is negatively affected when interest rates are low?
A) Consumers who rely heavily on income from savings
B) Businesses that produce high value goods
C) Homeowners with mortgage payments
D) Businesses with a lot of debt
What is disposable income?
A) Income before paying any bills
B) Income from investments only
C) Income that you have after you have paid all your bills
D) Income generated from capital goods
