Quiz: Government And Economic Influences On Business

8 Questions | Total Attempts: 151

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Economy Quizzes & Trivia

A few questions about the fourth chapter from the IGCSE Business Studies book: Government and Economic influences on Business


Questions and Answers
  • 1. 
    Define economic growth:
    • A. 

      The increase in the average price level of goods and services over time

    • B. 

      The value of income and falls when prices rise faster than money income

    • C. 

      When a country's Gross Domestic Product increases – more goods and services are produced than in the previous year

    • D. 

      Records the difference between a country's exports and imports

  • 2. 
    What is a balance of payments deficit
    • A. 

      The records of the difference between a country's exports and imports

    • B. 

      The lack of sufficient products to fulfill the total wants of the population

    • C. 

      The value of income and falls when prices rise faster than money income

    • D. 

      A pricing strategy where a high price is set for a new product on the market

  • 3. 
    Define Gross Domestic Product (GDP):
    • A. 

      The tax paid by limited companies on their profits

    • B. 

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

    • C. 

      The money invested into a business by the owners

    • D. 

      The total cost of production divided by total output

  • 4. 
    What is unfair discrimination at work? 
    • A. 

      All employees must be a member of the same trade union

    • B. 

      A trade union which represent a particular type of skilled worker

    • C. 

      A group of employers join together to give benefits to their members

    • D. 

      When some employers do not treat workers or applicants equally due to various reasons

  • 5. 
    What is a reason why governments help businesses? 
    • A. 

      To encourage business development in poorer areas of the country – called regional assistance

    • B. 

      To encourage banks to lend to exporters at lower interest rates

    • C. 

      To increase business costs which will force them to increase prices

    • D. 

      To provide hygienic conditions and washing facilities

  • 6. 
    Choose the communist economic system in regards to business ownership:
    • A. 

      Government owns all or most enterprises.

    • B. 

      Businesses are privately owned with minimal government ownership or interference.

    • C. 

      Both

    • D. 

      None of the above

  • 7. 
    The Basic Economic Systems of capitalism in regards to control of markets:
    • A. 

      Complete government control of markets.

    • B. 

      Complete freedom of trade. No or little government control.

    • C. 

      Some markets, such as nuclear energy and the post office, are controlled or highly regulated.

    • D. 

      None of the above

  • 8. 
    The Basic Economic Systems of socialism in regards to management of enterprises:
    • A. 

      Significant government planning and regulation. Bureaucrats run government enterprises.

    • B. 

      Private-sector management similar to capitalism. Public sector similar to socialism.

    • C. 

      Each enterprise is managed by owners or professional managers with little government interference.

    • D. 

      A and C