12 Questions
What is the impact of rising inflation on businesses?
Businesses' costs will increase, leading to higher prices for customers
What is the most likely impact of a fall in economic output on businesses?
Businesses are unlikely to expand as there is less need for their products or services.
How does a growing GDP impact businesses?
Businesses will benefit from increasing sales as more people have jobs and income to spend
What is the primary impact of a country running out of foreign currencies on its balance of payments?
The price of the country's currency will fall against other currencies.
What is the impact of low unemployment on businesses?
Businesses will need to pay higher wages to attract and retain employees
How does an increase in income tax most directly impact businesses?
Businesses will have less money after taxes, which could lead to a fall in sales.
How does low inflation impact businesses?
Businesses will face difficulty in expanding their operations
What is the primary impact of an increase in import tariffs and quotas on businesses?
Businesses that compete with imported goods will benefit, but those that rely on imported raw materials will have higher costs.
What is the impact of rising unemployment on businesses that sell cheaper products?
These businesses will see an increase in sales as customers look for more affordable options
How do higher interest rates most directly impact business investment?
Higher interest rates will make it more expensive for businesses to borrow money to finance investment and expansion.
How does low unemployment impact a business's ability to recruit new employees?
Low unemployment makes it more difficult for businesses to recruit new employees
Which of the following is the primary way that government spending changes can impact businesses?
Increased government spending will create more demand in the economy, which can benefit businesses.
Test your knowledge on how changes in employment levels, inflation, and other economic factors affect businesses. Understand the impact of growth, boom, recession, and slump on business operations and strategies.
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