How can success be measured? Choose all that apply
A.
Market share
B.
Christmas bonus
C.
Profits
D.
Increased recycling
5.
A business choosing to invest in training staff rather than buy a new machine is an example of...
A.
trade off
B.
opportunity cost
6.
Why would demand for Hovis White Sliced bread decrease in the price increased?
A.
People prefer Warburtons
B.
It's price senstitive
C.
It's price insensitive
D.
Hovis isn't worth it
7.
What is the following definition describing? "The impact of an economic decision on individuals or groups outside who are not directly involved in the decision."
A.
Third Party
B.
Scarcity
C.
Externalities
D.
Monopoly
8.
Which one of the following best describes a negative externality?
A.
A financial cost to a firm when investing in a new venture
B.
The benefits to a third party of a business venture
C.
The cost to the government of business activity
D.
A cost arising from business activity paid by those outside the firm
9.
What could be the result of interest rates rising? Choose two.
A.
Consumers saving less
B.
Consumers saving more
C.
Business borrowing more
D.
Business borrowing less
10.
Monetary policy is primarily used to...
A.
Help people save
B.
Control inflation
C.
Allow businesses to expand
D.
Help people buy houses
11.
A cash flow problem can result if cash outflows are greater than cash inflows. Which one of the following is an example of a cash inflow for a builder?
A.
Interest on a bank loan
B.
Wages paid to workers
C.
A customer payment for building a house extension
D.
Building materials bought using trade credit
12.
How is unemployment measured?
A.
The number of people in long-term unemployment
B.
The number of people made redundant in a given month
C.
The Consumer Price Index
D.
A monthly count of those people claiming unemployment benefit
13.
Identify one positive externality which will result from the opening of a new supermarket in town. The supermarket is the largest employer and they have built several new roads to improve access.
A.
Lower prices for local residents
B.
Access to a wider range of products
C.
Quicker journey times for drivers in the local area
D.
More employment for local people
14.
Which of the following is least likely to help the economy grow?
A.
Higher levels of investment
B.
Higher interest rates
C.
Higher taxation
D.
Lower Government expenditure
15.
Which of the following statements is true about interest rates?
A.
Higher interest rates might cause unemployment
B.
Lower interest rates are likely to result in lower levels of inflation
C.
Interest rates might affect the demand for food
D.
The interest rate is set by the IMF
16.
Which of the following is used to measure the rate of inflation?
A.
Gross Domestic Product
B.
Gross National Product
C.
Consumer Price Index
D.
FTSE 100 Index
17.
Which one of the following is an important feature of competitive advantage?
A.
They must be focused on cutting costs
B.
They need to be defensible and distinctive
C.
They are designed to make a business more socially responsible
D.
They must involve raising productivity
18.
What is likely to be the key interest of shareholders in a company?
A.
The profit made by the business
B.
Staff turnover
C.
Employee's working conditions
D.
The generation of new jobs
19.
The demand for restaurants in Southport is price-sensitive. If one restaurant lowers its prices, what is the likely outcome?
A.
Total revenue will rise
B.
Demand will fall
C.
Average costs will fall
D.
Productivity will rise
20.
Read the casestudy, then identify two negative externalities from the list below.
