Business Impact of Economic Changes Quiz

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What is the impact of falling output on employment levels?

Employment levels remain unchanged

There is a temporary increase in employment

Fewer workers need jobs and unemployment rises (correct)

More workers need jobs and unemployment falls

If a country runs out of foreign currencies, what happens to the price of its currency?

The price of the country's currency rises against other currencies

The price of the country's currency remains unchanged

The country's currency is replaced by a new currency

The price of the country's currency falls against other currencies (correct)

How does an increase in income tax affect businesses?

Businesses are unaffected by changes in income tax

Businesses see an increase in sales due to higher disposable income

Businesses have more money after tax due to lower personal income

Businesses have less money after tax and may see a fall in sales (correct)

What is the impact of an increase in import tariffs and quotas on businesses?

Businesses benefit if competing with imported goods, but face higher costs for imported raw materials Signup and view all the answers

When the government wants to boost economic growth, what does it do?

Increase public spending to create more demand Signup and view all the answers

What is a supply-side policy aimed at achieving?

Encouraging competition and business investment Signup and view all the answers

How does rising inflation affect businesses?

Increases costs and leads to falling sales Signup and view all the answers

What is the impact of high unemployment on businesses selling cheaper products?

Sales increase as customers cut back on spending Signup and view all the answers

Why might it get difficult for businesses to recruit new employees when GDP is increasing?

When unemployment starts to fall Signup and view all the answers

How does low inflation impact workers' wages?

Workers' wages will not buy as many goods as before Signup and view all the answers

What is a consequence of low unemployment according to the text?

Unemployed people do not produce goods and services Signup and view all the answers

How does increasing GDP generally benefit businesses?

Increasing sales due to more people having jobs and income to spend Signup and view all the answers

Business Impact of Economic Changes Quiz

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Questions and Answers

What is the impact of falling output on employment levels?

If a country runs out of foreign currencies, what happens to the price of its currency?

How does an increase in income tax affect businesses?

What is the impact of an increase in import tariffs and quotas on businesses?

When the government wants to boost economic growth, what does it do?

What is a supply-side policy aimed at achieving?

How does rising inflation affect businesses?

What is the impact of high unemployment on businesses selling cheaper products?

Why might it get difficult for businesses to recruit new employees when GDP is increasing?

How does low inflation impact workers' wages?

What is a consequence of low unemployment according to the text?

How does increasing GDP generally benefit businesses?

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