The economic climate (OCR 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 state of economy & factors
What happens when consumer income increases?
What happens when consumer income increases?
Purchasing power rises, sales & profits up
What impact does lower consumer income have on businesses?
What impact does lower consumer income have on businesses?
Decreases sales and profits
What are unemployment levels?
What are unemployment levels?
% of labour force unemployed & seeking work
How do higher employment levels affect businesses?
How do higher employment levels affect businesses?
More people have income, boosting sales
What happens to consumer spending when unemployment is high?
What happens to consumer spending when unemployment is high?
Reduces, negatively impacting sales
How do luxury goods sales behave when income rises?
How do luxury goods sales behave when income rises?
Increase more than necessities
What may happen to cheaper goods businesses when incomes rise?
What may happen to cheaper goods businesses when incomes rise?
Fall in sales as consumers switch up
How might businesses reduce costs when income falls?
How might businesses reduce costs when income falls?
Cut production, reduce waste, boost productivity
What HR adjustments occur when income and employment fall?
What HR adjustments occur when income and employment fall?
Boost productivity, lay off staff, cut wages
How might businesses manage finances during falling income?
How might businesses manage finances during falling income?
Use cheaper loans, renegotiate terms
What marketing strategies help during falling income?
What marketing strategies help during falling income?
Enhanced ads, change features, cut prices