Quiz: Government And Economic Influences On Business

8 Questions | By Katecambel | Updated: Mar 22, 2022 | Attempts: 225

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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