The economic climate on business (AQA GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What does the economic climate refer to?
What does the economic climate refer to?
Overall economic conditions
What is a direct effect of interest rate increases on businesses?
What is a direct effect of interest rate increases on businesses?
Business loans become pricier
Why might businesses save money when interest rates are high?
Why might businesses save money when interest rates are high?
To earn higher returns on savings
How do rising interest rates indirectly affect businesses through consumers?
How do rising interest rates indirectly affect businesses through consumers?
Consumers spend less overall
Which businesses are most affected when consumers reduce spending?
Which businesses are most affected when consumers reduce spending?
Non-essential goods & services
How does high employment benefit worker productivity?
How does high employment benefit worker productivity?
Workers have more job security
What recruitment challenge do businesses face when employment is high?
What recruitment challenge do businesses face when employment is high?
Vacancies are difficult to fill
What happens to wages when employment levels are high?
What happens to wages when employment levels are high?
Wages are likely to increase
What typically happens to consumer spending when unemployment is high?
What typically happens to consumer spending when unemployment is high?
Spending typically decreases
Why might businesses relocate to areas with higher unemployment?
Why might businesses relocate to areas with higher unemployment?
Larger pool of available workers
What do consumers spend more on when their incomes increase?
What do consumers spend more on when their incomes increase?
Luxury goods & services
Which products maintain stable demand despite income changes?
Which products maintain stable demand despite income changes?
Necessity items like bread & milk