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Section 6 - Revision Questions

This document provides a set of revision questions covering topics related to business studies including economics, business cycles, taxes, government policies, globalization, and sustainability. The questions range from short definition questions to longer explanation questions testing understanding of key concepts.

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34 views

Section 6 - Revision Questions

This document provides a set of revision questions covering topics related to business studies including economics, business cycles, taxes, government policies, globalization, and sustainability. The questions range from short definition questions to longer explanation questions testing understanding of key concepts.

Uploaded by

basheerqawlaq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Cambridge IGCSE and O Level Business Studies

Section 6 – Revision questions


Two-mark questions
1 Define ‘gross domestic product’.

2 Identify two economic objectives of a government.

3 Identify two stages of the business cycle.

4 Define ‘balance of payments’.

5 Identify two examples of direct taxes.

6 Define ‘indirect taxes’.

7 Identify two ways in which the government can control business activity.

8 Define ‘externality’.

9 Identify two effects of business activity on the environment.

10 Define ‘social cost’.

11 Define ‘sustainable development’.

12 Identify two unethical business practices.

13 Define ‘pressure group’.

14 Identify two methods used by pressure groups to influence businesses and the government.

15 Define ‘globalisation’.

16 Identify two characteristics of globalisation.

17 Define ‘multinational’.

18 Identify two examples of trade blocs.

19 Define ‘quota’.

20 Define ‘depreciation of a currency’.

© Cambridge University Press 2018 Section 6 – Revision questions 1


Cambridge IGCSE and O Level Business Studies

Four-mark questions
1 Describe the main characteristics of the boom stage of the business cycle.

2 Outline two economic objectives of a country.

3 With the aid of examples, explain the difference between direct and indirect taxes.

4 Outline how an increase in income tax rates can affect consumer spending.

5 Outline how an increase in interest rates will affect businesses.

6 How will changes in government spending on infrastructure affect businesses in that sector?

7 What are greenhouse gases? How does business activity contribute to the emission of greenhouse gases?

8 Outline two negative externalities caused by a new factory located near a residential area.

9 Outline how the government can use incentives to encourage businesses to be environmentally friendly.

10 Outline two steps a business can take to become sustainable.

11 Outline two advantages to a business of following ethical business practices.

12 With the help of an example, explain the significance of cost–benefit analysis when evaluating the impact
of a project.

13 Outline the opportunities and threats of globalisation.

14 Outline the importance of becoming a multinational company to a business.

15 Use an example to explain the impact of depreciation of a currency on a business.

16 Outline the effect of appreciation of a currency on exporters.

17 List and explain two characteristics that will make a country attractive for investment in by multinational
companies.

18 With the aid of an example, explain how free trade agreements may benefit international trade.

19 Outline two advantages of a multinational company to the host country.

20 Outline two ways in which a government tries to control the amount of international trade
of its country.

© Cambridge University Press 2018 Section 6 – Revision questions 2


Cambridge IGCSE and O Level Business Studies

Six-mark questions
1 Country A is in recession. Its government has two main objectives: to reduce unemployment and to improve
the country’s balance of payments. In order to improve the balance of payments, the government has set quotas
and tariffs on imports and lowered interest rates to encourage exports. The currency of Country A has been
depreciating against the currencies of its international trading partners.
a Explain the main characteristics of an economy in recession.
b Do you think setting quotas and tariffs and lowering interest rates will help improve the balance of
payments of Country A? Justify your answer.
c Do you think the depreciation of Country A’s currency against the currencies of its international trading
partners will help the exporters of Country A? Justify your answer.

2 Surjit Banda owns a rubber manufacturing plant and has lately been facing opposition from local pressure
groups in his country for the plant’s impact on the environment. Surjit has responded to the pressure groups by
saying that his business activity is sustainable and that his manufacturing plant has helped the economy of the
country. Surjit has plans to export his products to neighbouring countries and wants to be known as an ethical
supplier.
a Do you think Surjit’s business activity has more social benefits than costs? Carry out a cost–benefit analysis
to justify your answer.
b Why is it important for Surjit to respond to the pressure groups? Explain the opportunities and threats
posed by pressure groups.
c Explain why it is important for Surjit’s business to be known as ethical.

© Cambridge University Press 2018 Section 6 – Revision questions 3

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