Which statement is true?

When prices are low, demand is relatively high

If the £ becomes stronger:

UK manufacturers may experience a fall in overseas sales

If the interest rate rises:

Consumers will save more, and borrow and spend less

Exports become cheaper, imports become more expensive

If interest rates fall:

It becomes cheaper for firms to borrow money

The price of chocolate falls. Which statement best describes the reason why this has happened

More manufacturers are making chocolate

Selling price - cost of goods sold

Which statement best describes an export for a UK firm:

A good or service they sell overseas

What are the factors of production?

Land, labour, capital and enterprise

What is the basic economic problem?

Unlimited wants and limited resources create scarcity

If firms can correctly forecast future economic conditions:

They are less likely to need to borrow money from a bank

The price of petrol rises, which statement best describes the effect on a small delivery firm:

The firm's costs rise and so might prices

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Business

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Questions 25

Answers

1
What is the largest stock exchange in the world in terms of market capitalisation?
Tokyo Stock Exchange
Nasdaq Stock Market
Hong Kong Stock Exchange
New York Stock Exchange
2
What does FIFO stand for?
Financial Information For Organisations
Forced Import For Outsourcing
Factor Inexorably Firm Osmosis
First-in, First-out
3
Which of the following is the most expensive currency?
Euro (EUR)
British Pound Sterling (BPS)
Kuwaiti Dinar (KWD)
Canadian Dollar (CAD)
4
What country had the highest crude oil production in 2014?
The United States
China
Saudi Arabia
Russia
5
What year did NAFTA enter into force?
1994
1998
2002
1990
6
If £1 = $1.80, then a £1,000 order of British cheese will sell in the USA for:
$1000
$180
$100
$1800
7
Which is NOT a business objective?
Scam customers
Increase sales
Survive
Make profits
8
Which statement is true?
When demand is high, supply is low
When supply is high, prices are high
When prices are low, supply is high
When prices are low, demand is relatively high
9
If the £ becomes stronger:
Importers to the UK will find it harder to generate UK sales
Costs of imported goods and raw materials rise
UK holiday makers may choose to holiday at home
UK manufacturers may experience a fall in overseas sales
10
Which country is the biggest producer of natural gas?
Qatar
Iran
Russia
The United States
11
If the interest rate rises:
Consumers will borrow more money
Consumers will save more, and borrow and spend less
Firms can borrow money more cheaply
Small firms can sell goods more cheaply
12
If the £ is weaker:
Exports and imports become more expensive
Exports become cheaper, imports become cheaper
Import and export prices are unaffected
Exports become cheaper, imports become more expensive
13
If interest rates fall:
It becomes cheaper for firms to borrow money
A firm's costs rise
A currency becomes stronger
Consumers safe more of their income
14
The price of chocolate falls. Which statement best describes the reason why this has happened
The cost of sugar has risen
Demand for chocolate has risen
Supply of chocolate has fallen
More manufacturers are making chocolate
15
Which city has the highest cost of living?
New York (The United States)
Hong Kong
Luanda (Angola)
Tokyo (Japan)
16
Value added is...
Cost of goods sold + selling price
Cost of goods sold - selling price
Selling price + cost of goods sold
Selling price - cost of goods sold
17
Which nation is not a member of the Asia-Pacific Economic Cooperation (APEC)?
China
Panama
Mexico
Russia
18
Which statement best describes an export for a UK firm:
A good or service they sell overseas
Raw materials they purchase from Germany
French cheese
A service purchased from a local supplier
19
What are the factors of production?
There are no factors of production
Land, labour, capital and enterprise
Employment, ethics, age and gender
Land, labour and enterprise
20
What is the basic economic problem?
Resources are available in infinite supply
Unlimited wants and limited resources create scarcity
Unlimited needs and limited resources creates scarcity
There aren’t enough needs and wants
21
Which of the following is NOT a commodity:
Gold
Nike trainers
Money
Coffee
22
If firms can correctly forecast future economic conditions:
They are more likely to survive a recession
They are less likely to need to borrow money from a bank
They are more likely to achieve growth over time
They are less likely to experience falling revenues
23
If £1 = $1.50, then a $450 weekend break in New York will cost a UK customer:
£225
$600
£600
£300
24
Which of the following countries is not one of the three largest trade partners of the USA?
Japan
Mexico
Canada
China
25
The price of petrol rises, which statement best describes the effect on a small delivery firm:
The firm will go bankrupt
The firm's costs rise and so might prices
The firm's prices will fall
The firm's costs rise but the prices will not

Business Flashcards | StudBud