Government and Economic Influences on Business Quiz

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| By Katecambel

Katecambel

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Quizzes Created: 6 | Total Attempts: 4,459

Questions: 8 | Attempts: 249 | Updated: Dec 14, 2023

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Navigate the complex intersection of government policies and economic influences with our "Government and Economic Influences on Business Quiz." This quiz is tailored for business enthusiasts, students, and professionals looking to deepen their understanding of the intricate relationship between government decisions and economic factors impacting businesses. Delve into questions covering regulatory frameworks, fiscal policies, and the dynamic forces shaping the business landscape. Whether you're a student aspiring to grasp the fundamentals or a business professional seeking to stay informed, this quiz provides a comprehensive exploration of the critical interactions between government actions and economic forces affecting businesses. Challenge yourself with Read morescenarios reflecting real-world business challenges, and gain valuable insights into the nuanced world of government and economic influences on business. Immerse yourself in this informative quiz to enhance your knowledge and strategic understanding of the business environment.

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
Correct Answer
C. When a country's Gross Domestic Product increases – more goods and services are produced than in the previous year
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
Correct Answer
A. The records of the difference between a country's exports and imports

Explanation
A balance of payments deficit refers to the records of the difference between a country's exports and imports. This means that the value of imports is greater than the value of exports, resulting in a deficit in the balance of payments. This deficit indicates that the country is spending more on foreign goods and services than it is earning from its exports.

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

Explanation
Gross Domestic Product (GDP) is a measure that represents the total value of all goods and services produced within a country's borders in a specific time period, usually one year. It includes the value of both final goods and intermediate goods used in production. GDP is used to assess the economic performance and growth of a country, as it provides an indication of the overall size and productivity of the economy. It is calculated by summing up the value added at each stage of production across all sectors of the economy.

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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
Correct Answer
D. When some employers do not treat workers or applicants equally due to various reasons

Explanation
Unfair discrimination at work refers to the situation where some employers do not treat workers or applicants equally due to various reasons. This means that certain individuals may be treated unfairly or unfavorably based on factors such as their race, gender, age, disability, or any other protected characteristic. This type of discrimination is unjust and goes against principles of equality and fairness in the workplace. It is important for employers to ensure that all employees are treated fairly and given equal opportunities without any form of discrimination.

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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
Correct Answer
A. To encourage business development in poorer areas of the country – called regional assistance

Explanation
Governments help businesses to encourage business development in poorer areas of the country, which is known as regional assistance. This support aims to stimulate economic growth and reduce regional disparities by providing resources, incentives, and infrastructure to attract businesses and investment to these areas. By doing so, governments can create job opportunities, improve living standards, and promote overall development in economically disadvantaged regions.

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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
Correct Answer
A. Government owns all or most enterprises.

Explanation
The correct answer is "Government owns all or most enterprises." This answer accurately describes the communist economic system, where the government has control over the means of production and owns the majority of businesses. In a communist system, private ownership and interference from the government are minimal, if not completely absent.

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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
Correct Answer
B. Complete freedom of trade. No or little government control.

Explanation
In capitalism, the basic economic system is characterized by complete freedom of trade with little or no government control. This means that individuals and businesses have the freedom to engage in trade and economic activities without excessive government interference. The market forces of supply and demand determine prices and allocation of resources. This system allows for competition, innovation, and efficiency in the economy. However, it is important to note that some markets, such as nuclear energy and the post office, may be controlled or highly regulated due to their nature and importance.

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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
Correct Answer
A. Significant government planning and regulation. Bureaucrats run government enterprises.

Explanation
The correct answer is A and C. The basic economic systems of socialism involve significant government planning and regulation, where bureaucrats are responsible for running government enterprises. Additionally, each enterprise can also be managed by owners or professional managers with little government interference. This means that both options A and C are correct explanations of the management of enterprises in socialism.

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Current Version
Dec 14, 2023

Quiz Edited by
ProProfs Editorial Team
Apr 23, 2010

Quiz Created by
Katecambel

Government And Economic Influences On Business Quiz

Define economic growth:

What is a balance of payments deficit?

Define Gross Domestic Product (GDP):

What is unfair discrimination at work?

What is a reason why governments help businesses?

Choose the communist economic system in regards to business ownership:

The Basic Economic Systems of capitalism in regards to control of markets:

The Basic Economic Systems of socialism in regards to management of enterprises: