Exam 1: The Business Environment and Business Economics

The definition of an industry following the Standard Industrial Classification (SIC) is based on the qualities that consumers attribute to products.

The development of a new production technology is an

The sector of the UK economy that has not grown over the last 20 years is the tertiary sector.

Tertiary production involves the service sector.

Changes in attitudes to equality would be classified as

The decline in the contribution of the manufacturing industry to national output is called de- industrialisation.

Which of the following statements concerning the Standard Industrial Classification (SIC) is true?

Microeconomics is the study of what?

Tertiary production refers to

The decline in the share of the secondary sector in GDP is known as

Business performance is entirely shaped by external factors.

The better informed a business is about its markets, its costs of production, alternative techniques and alternative products it could make, the better it will be able to fulfil its goals.

Macroeconomics is the study of what?

Business performance cannot be measured by profitability.

In UK industry, large firms (i.e. those with more than 250 employees) account for about _______% of employment and SMEs (i.e. those with fewer than 250 employees) account for about ______________% of workers.

Business performance could be examined by looking at

An example of an external effect of business decision- making is the level of interest rates.

If a firm is operating in a highly competitive market, how will it tend to behave?

There are three stages in studying decision- making. Explain what they are.

The extent to which an industry is dominated by large business enterprises is usually examined by a measure of