Which of these businesses is most likely to sell more when consumer income falls?
Travel agent
Jeweller
Pound shop
Which of these phrases best defines an unemployed person?
Someone without a job who is in full-time education
Someone without a job who is actively seeking work
Someone without a job who is unable to work
What would happen if the US dollar appreciated against the pound?
UK goods would become cheaper to buy in the US
US goods would become cheaper to buy in the UK
UK businesses would expect to sell less in the US
What would an increase in interest rates encourage?
More consumer spending
More borrowing
More saving
What is expected to happen when unemployment falls?
More people will be without a job
Consumer spending will rise
More inferior goods will be sold
What happens when there is inflation?
Prices stay the same
Purchasing power decreases
Prices fall temporarily
What is an ‘exchange rate’?
A general and sustained increase in prices
The cost of borrowing money
The price of one currency in terms of another currency
The exchange rate changes from £1 = €1.20 to £1 = € 1.30. What has happened?
The pound has appreciated against the euro
The pound has weakened against the euro
The pound has depreciated against the euro
What does the acronym SPICED stand for when used to explain what happens if the pound appreciates?
Selling Pounds Increases the Chances that Exports are Dearer
Strong Pound makes Imports Cheaper but Exports Dearer
Some Products are Imported Cheaply or Exported Daily
Which of the following is an example of a tax on sales?
VAT
Income tax
Corporation tax