Dynamic Business Environment

The word count for this work is 1200 words, 300 words for each question.

Also, could you please answer to the multiple-choice questions please, by just highlighting the correct answer.

  1. What are the implications to the government being in long term debt?
  • What is the impact of high levels of unemployment and what is the best way for a government to reduce unemployment?
  • Discuss the implications of a government trying to promote “faster growth” within the economy.
  • Detail the benefits of free trade to A) a country; B) a business within that country.

Government policy

1 – In relation to economic indicators GDP stands for:

A – Gross Domestic Price

B – Gross Dimensional Product

C – Gross Domestic Product

D – Grand Domestic Price

2 –  ___________ demand is the name for the total planned demand in a given period for all goods and services within an economy?

A – Total

B – Aggregate

C – Average

D – Annual

3 – ‘The consumption function’ suggests that consumption of goods increases when disposable income rises, what 3 other factors can lead to an increase in consumption?

A – Interest rates

B – Buyer confidence

C – The price of assets

D – Unemployment

4 – Aggregate Supply is defined as:

A – The quantity of goods & services an economy can produce at different price levels

B – The quantity of goods & services a business can produce at different price levels

C – The quantity of materials an economy can produce at different price levels

D – The quantity of good will an economy can produce at different price levels

5- Which of the following is not typically a government objective?

A – Low unemployment

B – Fast economic growth

C – Stable prices

D – Greater regional income inequality

6 – Which of the following would NOT be affected by a change in interest rates?

A – The cost of borrowing

B – The return on savings

C – The attractiveness of financial assets

D – Unemployment figures

7 – Which of the following is not an example of fiscal policy?

A – Higher interest rates

B – Lower income tax

C – Higher corporation tax

D – Greater government spending

8 – The government’s budget position measures the difference between:

A – Export spending and import spending

B – Government spending and income

C – Government consumption and investment

D – Consumption and savings

9 – Monetary policy does not include:

A – Changes to the interest rate

B – Changes to bank lending

C – Changes to bank borrowing

D – Changes to taxation rates

10 – If the economy grows the government’s budget position will automatically:

A – Improve due to increased spending

B – Worsen

C – Improve due to greater tax revenues

D – Stay the same

Unemployment and Inflation

11 – What is meant by inflation?

A – A sustained increase in the exchange rate

B – A sustained increase in the general price level

C – A sustained increase in firms’ costs

D – A one off increase in prices

12 – What might be an appropriate supply side policy to reduce unemployment?

A – Increasing unemployment benefits

B – Increasing the tax rate on earnings

C – Reducing the training budget for back to work schemes

D – Reducing the power of trade unions to push up wages

 

13 – Inflation is measured by

A – DTI

B – EMU

C – WTO

D – CPI

14 – Unemployment may lead to

A – An outward shift of the production possibility frontier

B – A movement along the production possibility frontier

C – Production outside of the production possibility frontier

D – Production within the production possibility frontier

15 – Which of the following is likely to be true with high, unanticipated inflation?

A – A country will become more internationally competitive

B – It will become easier for businesses to plan

C – Individuals with constant nominal income will be worse off in real terms

D – Costs will fall

16 – If prices are falling this is known as?

A – Deflation

B – Reflation

C – Inflation

D – Hyperinflation

17 – Which of the following is NOT a cause for unemployment

A – Structural changes to the economy

B – Seasonal demand

C – Lack of skilled workforce

D – New business and enterprise

18 – Supply side policies increase the _________________ which in turn reduces the natural rate of unemployment

A – Job acceptance rate

B – Jobs available

C – Taxation levels

D – Inflation levels

19 – Which of the following would NOT help control inflation……

A – Decrease the value of the currency

B – Control growth of the money supply

C – Try to control wages

D – Reduce aggregate demand

20 – Which of the following is NOT a consequence of unemployment:

A – Waste of resources (producing within the PPF)

B – Reduction in tax income

C – Increase in benefit payments

D – Increase in GDP

Growth and balance of payments

21 – Which of the following is NOT a stage of the economic cycle?

A – Boom

B – Recession

C – Slump

D – Decline

22 – Balance of payments records the value of transactions between one country and ______________________ over a given period of time?

A – Another country

B – The rest of the world

C – The rest continent

D – The rest of the EU

23 – Supply side policies help grow the economy, which of the following is NOT an example of a supply side policy?

A – Providing incentives for investment

B – Encouraging competition

C – Remove regulations for new ‘start ups’

D – Economies of scale

24 – Economic growth can be best shown by:

A – An outward shift of the production possibility frontier

B – An inward shift in the production possibility frontier

C – A fall in GNP

D – A lower GDP per person

25 – A recession occurs when?

A – GDP grows slowly

B – GDP grows quickly

C – There is negative economic growth for two successive quarters

D – There is zero growth for two successive quarters

26 – What does the J curve represent?

A – How the government’s budget position changes over time

B – How the exchange rate changes over time

C – How the current account position changes following a depreciation of the currency

D – How the current account position changes following an appreciation of the currency

27 – A current account trade deficit means that:

A – Spending on imported goods and services equals the export earnings over a given period

B – Spending on imported goods and services is greater than the export earnings over a given period

C –Spending on imported goods and services is less than the export earnings over a given period

D – Government spending on imported goods and services equals the export earnings over a given period

28 – “A fast growth of consumption helped by rising real incomes, strong confidence and surge in house prices and share prices”

This best describes which stage of the economic cycle?

A – Boom

B – Recession

C – Slump

D – Recovery

29 – Which of the following is NOT an example of a ‘Balance of payments’ entry:

A – Exports and imports of goods such as oil, agriculture, raw materials, machinery, transport etc

B – Exports and imports of services such as travel, financial and business services

C – Income/financial flows including investments and interest earned

D – Current GDP

30 – Which of the following is NOT a typical symptom of a recession?

A – Rising unemployment

B – A decline in consumer and business confidence

C – A contraction in consumer spending

D – Rising levels of purchasing 

International business and trade

31 – Complete the sentence. A country is likely to export products if it has……?

A – A comparative advantage

B – A comparative disadvantage

C – A higher opportunity cost than other countries

D – High rates of inflation

32 – Complete the sentence. International trade……?

A – Moves production within a country’s production possibility frontier

B – Shifts a country’s production possibility frontier outwards

C – Enables a country to consume outside of its production possibility frontier

D – Shifts a country’s production possibility frontier inwards

33 – What is a tariff?

A – A tax on foreign products imported into a country

B – A limit on the number of foreign products that can be imported

C – A legal restriction on the volume of imports

D – A form of subsidy to domestic producers

34 – Which of the following is NOT an example of how to enter an overseas market?

A – Forming a partnership or venture with a local business in another country

B – Setting up your own business operations abroad

C – Taking over an existing business in that country

D – Selling imported goods in the UK

35 – What is the European Union?

A – A collection of countries with the same currency

B – A collection of countries which allow freedom of movement of people, goods and money between members

C – A union of countries which agree to trade only with each other

D – A union of countries which have the same tax rates

36 – Which of the following is NOT a benefit of protectionism?

A – Protect strategic industries that may be thought of as essential to the safety of the economy

B – Protects jobs in a particular industry that is suffering

C – Retaliation against actions taken by the other government to limit trade.

D – Keeping ALL domestic prices low

37 – The level of exports can be influenced by many factors, which of the following is NOT a factor?

A – The exchange rate

B – Barriers to trade being evident

C – Income levels abroad

D – Transportation

38 – What is protectionism?

A – Shielding a country’s domestic industries from foreign competition by taxing imports.

B – Shielding a country’s domestic industries from foreign competition by banning imports.

C – Looking after local labour over foreign labour

D – Providing additional support for home-grown organisations

39 – What is the term for when a government gives a business some capital allowing them to reduce their costs and undercut overseas producers?

A – Quotas

B – Tariffs

C – Subsidies

D – Administrative regulations

40 – Free trade exists where there are no barriers to trade; this means that businesses can easily export or import products, without limits being placed on the nature or level of trade between countries.

True or false

Type of service-Academic paper writing
Type of assignment-Essay
Subject-Business
Pages / words-4/1100
Academic level-Freshman (College 1st year)
Paper format-MLA
Line spacing-Double
Language style-AU English

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