CHAPTER 3: THE ENVIRONMENT AND BUSINESS: ECONOMY AND THE STATE
Quiz
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Businesses attempt to survive by largely ignoring the environment in which they operate.
Businesses are always affected by environmental changes that occur around them.
The environment is always more powerful than any individual business and hence businesses must adapt or die.
The relationship that exists between a business and its environment is complex and interactive.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
PEST analysis forms the basis of Porter’s ‘five forces model’.
PEST analysis examines a number of environmental influences on business but is descriptive rather than predictive.
PEST and SWOT are essentially the same type of analysis.
LoNGPEST takes a long-term view of those environmental factors affecting a specific firm.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Gross domestic product is the total value of a nation’s manufacturing output.
Gross national product is the total value of the output of an economy plus the values of outputs derived by residents overseas less those produced by non-residents.
Gross national income is another form of gross domestic product.
Purchasing power parity is a measure of how rich individuals are in a given country.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Japan’s economic growth 1950-75 was due mostly to the expansion of the home market.
Japan’s economic growth 1950-75 was due mostly to the expansion of the export market.
Japan’s economic growth 1950-75 was due mostly to establishing operations in major export markets.
Japan’s economic growth 1950-75 was due mostly to a combination of the control of imports, low wages, long working hours and the reinvestment of profit.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The BRICs report by Goldman Sachs focuses on the predictive economic growth of China and India.
The BRICs report by Goldman Sachs argues that the purchasing power of the Chinese and Indian population will outstrip that of the USA by 2050.
The BRICs report by Goldman Sachs has been shown to be an accurate prediction of economic trends up to 2050.
The BRICs report by Goldman Sachs argues that the economic growth of China and India will be based on manufacturing and service industry output, while that of Russia and Brazil will rely more upon the value of natural resources.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The Chinese and Indian economies are similar in that both focus on manufacturing.
The Chinese economy has grown faster than the Indian economy because China has a greater supply of cheap labour.
The Chinese economy has grown faster than the Indian economy because China has attracted more foreign investment and international joint ventures.
China is a highly controlled state run economy whereas India’s democratic government have encouraged a free market for many years.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The USA economy will be overtaken by the Chinese economy in the next 15 years.
The USA currently contributes around 25% of the world’s manufacturing output and over 30% of the world’s service industry output.
The value of US exports is far greater than the value of US imports.
The value of US exports is far greater than the value of US multinational operations overseas.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Anglo-Saxon capitalism rejects state intervention of the economy at all costs.
Anglo-Saxon capitalism emphasises individualism and the concept of private property.
Social market capitalism sets out to control the workings of the free market.
Asian capitalism supports the concept of a free market and the state operates a ‘hands off’ approach.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
State control and a centrally planned economy are still key features in many countries in the world.
Many former state controlled economies are now in transition, incorporating some features of a free market economy.
Workers are invariably better off under a social market system.
In Asian capitalist systems the state provides for all the welfare needs of individuals.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
In Anglo-Saxon capitalism competitive markets are controlled by the state.
In Anglo-Saxon capitalism the privatization of state owned industries has resulted in a highly dispersed pattern of share ownership.
In Anglo-Saxon capitalism managers are motivated to maintain profits and share price to prevent hostile takeovers.
In Anglo-Saxon capitalism trade unions are welcomed for the stability they bring to work place operations.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
In social market capitalism the state places significant limits on the operation of free markets.
In social market capitalism employees are the most important stakeholder.
In social market capitalism hostile takeovers are rare and all takeovers are controlled by law.
In social market capitalism firms care more for their employees by paying comparatively higher wages than in other capitalist systems.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
In Asian capitalism the state places significant limits on the operation of free markets.
In Asian capitalism savings form an important form of investment for the economy.
In Asian capitalism it is forbidden by law to make employees redundant.
In Asian capitalism stock markets tend to be highly volatile.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Anglo-Saxon capitalism is typified by a free market with the state providing comprehensive welfare provision.
Anglo-Saxon capitalism is typified by active stock markets which feature hostile takeovers.
In Anglo-Saxon capitalist countries the state is influential in economic planning.
In Anglo-Saxon capitalist systems it is important to maintain employment levels during a recession.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
Key roles of the state are providing a legal framework, establishing economic policies and protecting the vulnerable.
The state comprises a unified group of institutions that control economies based on agreed policy.
The state is really another name for government.
The most influential element of the state in any country is the civil service.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
State intervention in the economy is difficult particularly in the area of legislation.
State intervention in the economy is difficult because many firms are now more powerful than governments.
State intervention in the economy is difficult in that since privatization the state has lost its role as a major employer.
State intervention in the economy is difficult because the business community may oppose attempts by government to control it.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The World Trade Organization was set up with the backing of leading US firms to assist them in increasing trade.
The World Trade Organization was created because the assumptions and aims of the General Agreement on Tariffs and Trade were no longer valid.
The World Trade Organization only grants membership to those countries with a democratically elected government.
The World Trade Organization offers a more formal structure for the furtherance of trade agreements than existed under the General Agreement on Tariffs and Trade.
These questions are designed to test your understanding of the material contained within each chapter. For each question you are given a choice of 4 statements. Only one of these statements is correct.
The EU originated from a handful of Western European countries with a focus on coal and steel production.
Employment issues lay at the heart of the Single European Act 1992.
The Copenhagen Summit agreed to the enlargement of the EU by 15 new countries joining in May 2004.
The UK has opted out of European Monetary Union because of the poor exchange value of the pound against the euro.