Page 452 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

7 Which of the following statements is true about the benefits of technology to consumers?
A Lower prices – lower quality products

B Higher quality products – higher prices
C Lower prices – higher quality products

D Lower prices – less choice

8 Which of the following is an example of variable costs?
A Factory rent

B Components

C Managers’ salaries
D Advertising expenditure

9 Which of the following is not an economy of scale?
A Purchasing economy
B Technical economy

C Production economy
D Managerial economy

10 A benefit to a business of economies of scale is:
A price will fall

B average cost will rise
C total costs will fall

D average cost will fall.

11 Which of the following describes break-even?

A Revenue is higher than total costs.
B Revenue is the same as fixed costs.

C Revenue is the same as total costs.
D Revenue is the same as variable costs.

12 What will happen to break-even output when price remains the same but total costs rise?
A Break-even output will be lower.
B Break-even output will not change.

C Break-even output will be higher.
D It is not possible to say what will happen to break-even output.

13 A benefit to a business of producing quality products is:
A competitors will have to lower their prices to compete

B the costs of waste is reduced which increases average costs
C the business might be able to charge a premium price

D they will be more capital intensive.

© Cambridge University Press 2014 IGCSE Business Studies Section 4 – Multiple choice 2