Page 458 - Cambridge IGCSE Business Studies

IGCSE Business Studies Student CD-ROM

Section 6 – Multiple choice

1 Which of the following is not an economic objective of the government of a country?

A Economic growth
B Higher inflation

C Lower unemployment
D Healthy balance of payments

2 The price increase of goods and services over time is known as
A inflation
B GDP

C balance of payments
D globalisation.

3 Which stage of the business cycle is characterised by a decline in economic activity?
A Boom

B Growth
C Recession

D Slump

4 Which two factors are the main elements of a government’s economic policy?

A Interest rates
B Infrastructural improvements

C Tax rates
D Waste collection

5 How will the cost of borrowing money from banks be affected by an increase in interest rates?
A It will become more expensive

B It will stay the same
C It will become cheaper

D It will depend on the bank

6 Which of the following is not a type of tax?

A Tariff
B VAT
C Income tax

D Quota

© Cambridge University Press 2014 IGCSE Business Studies Section 6 – Multiple choice 1