2nd Year Christmas Tests

Question 1

Name 2 pricing strategies

Answer 1

Cost plus pricing and competitive pricing

Question 2

Define the term taxation

Answer 2

Taxation is the way the government collects money to pay for public services.
The Office of the Revenue Commissioners (‘Revenue’ for short) is the state body responsible for collecting all taxes in the Republic of Ireland.

Question 3

Define the term current expenditure

Answer 3

Current expenditure: Money spent by the government on a regular or ongoing basis.
The majority of government current expenditure involves day-to-day spending on essential public services, including health, education, security, etc. wages for public sector

Question 4

Define the term capital expenditure

Answer 4

Capital expenditure: Spending on ‘once-off’ projects or on infrastructure that will
have long-term benefits for the country.

Question 5

Explain the terms industrial relations

Answer 5

Industrial relations refers to the relationship that exists between employers and their employees in the workplace.

Question 6

Define the term industrial disputes

Answer 6

It is when you and your boss don’t have a good relationship and can lead too staff turnover and overtime ban

Question 7

Outline why current expenditure increases

Answer 7

Current expenditure may increase if the country/household decides decides to spend it on a big project but other areas will be affected. Eg raising the amount of money in the pension might mean nurses get paid less

Question 8

Explain the difference between a financial,cultural and social enterprise

Answer 8

A financial enterprises goal is to make a profit eg. McDonald’s a benefit of it is that it creates jobs, a cultural enterprises goal is to promote arts,heritage,traditional sports,theatre and music. Eg. GAA. And a social enterprises main goal is to help the community and the people in it eg UNICEF

Question 9

Define the term the national budget

Answer 9

The national budget is the government’s financial plan for the year ahead. It shows
expected revenue and planned expenditure.

Question 10

Define the term opportunity cost

Answer 10

The opportunity cost is the item we must go without when we have to make a choice.

Question 11

Define the term surplus

Answer 11

A surplus occurs when planned income is greater than planned expenditure.

Question 12

Define the term deficit

Answer 12

A deficit occurs when planned expenditure is greater than planned income.

Question 13

Define the term inflation

Answer 13

Inflation is a sustained increase in the general level of prices of goods and services from one year to the next.

Question 14

Name and explain 1 impacts of inflation on business

Answer 14

Workers may demand wage increases so that they can afford the same amount of goods and services as they did before inflation.

Question 15

Name and example 1 impact of inflation on households

Answer 15

Inflation reduces the purchasing power of money. Higher prices means that consumers will not be able to buy as many goods and services, which will result in a lower standard of living.

Question 16

How do we measure inflation

Answer 16

The official rate of inflation is measured by the Consumer Price Index (CPI).

Question 17

List 3 other economic indicators

Answer 17

Employment levels, National income, Interest rates

Question 18

Define the term a trade union

Answer 18

A trade union is an organisation that represents workers, protects their rights and negotiates with employers on pay and conditions of work.

Question 19

Name and explain 2 rights of an employee

Answer 19

Receive at least the legal minimum wage - employees should always receive a fair day’s pay for a fair day’s work and they should Receive a written contract of employment

Question 20

Name and explain 2 rights of an employer

Answer 20

To hire suitable staff for their business and To dismiss dishonest or unsuitable staff.

Question 21

Name and explain 2 responsibilities of an employee

Answer 21

Carry out their duties as stated in their contract of employment and wear the right protective clothing and equipment

Question 22

Name and explain 2 responsibilities of an employer

Answer 22

Give employees a written contract of employment and pay agreed wages. They must pay at least the minimum wage to their employees and give equal pay to men and women.

Question 23

Define the term price

Answer 23

The price is the amount of money a seller charges a customer for a product or service

Question 24

Define the term product

Answer 24

It’s a good or service bought to satisfy consumers needs or wants bought by a business

Question 25

What is product design

Answer 25

It is the first stage in making a product. Well designed products will attract more people

Question 26

Define the term product life cycle

Answer 26

The product life cycle is the different stages that a product goes through from the time it is launched until it is taken off the market. It is usually illustrated on a five-stage diagram that shows the changes in product sales over time.

Question 27

What is a brand name

Answer 27

A brand is a name, symbol, design or other feature that makes a product easy to recognise and distinguishes it from competing products.

Question 28

Define the term unique selling point

Answer 28

A business will try to create a unique selling point (USP) for its product or service. This is what makes the product different from its competitors. For example, Volvo’s USP is safety, while Toyota’s is reliability.

Question 29

Define the term promotion

Answer 29

Promotion means making customers aware of the product or brand in order to increase sales and create brand loyalty.

Question 30

Define the term sales promotion

Answer 30

Sales promotions are incentives offered to customers to get them to buy products.eg. Buy 1 get 1 free

Question 31

Define the term advertising

Answer 31

Advertising involves communicating with the public to let them know about a product and get them interested in buying it.ed. TV advertising

Question 32

Define the term public relations

Answer 32

The role of public relations is to help create a positive image of the business.eg. Sponsoring a team

Question 33

Define the term place

Answer 33

Place refers to where customers will buy the product and the channel of distribution used to get the product to this location.

Question 34

Define the term channels of distribution

Answer 34

Channels of distribution refers to the way in which the product gets from the manufacturer to the consumer.

Question 35

Define the term debit servicing

Answer 35

It is when the government have to try/pay back all there debit owed.eg having to pay banEU grants

Question 36

Define the term flexitime

Answer 36

Flexitime means that an employee can start and finish work at a time that suits them each day as long as they do the hours stated in their contract.

Question 37

Define the term time rate

Answer 37

Wage calculation based on the number of hours worked. Employees must ‘clock in’ and ‘clock out’ of work so that their employer knows how manyhours they have worked.

Question 38

Define the term overtime payments

Answer 38

When an employee works longer than the standard working week, they may receive a higher rate of payment for those extra hours.

Question 39

Define the term price rate

Answer 39

Calculation based on the number of items completed.

Question 40

What is commission

Answer 40

Some workers, especially sales staff, receive a payment based on the value of the goods or services they have sold.

Question 41

Define the term bonus payment

Answer 41

Some employers reward their staff with extra payments for meeting performance targets or deadlines.

Question 42

Evaluate the benefits and costs of a government economic policy and assess who enjoys the benefits and who bears the costs

Answer 42

Government economic policy refers to all the ways in which the government tries to have an impact on the economy. Every policy decision will involve both a financial cost and an opportunity cost.

Taxpayers usually bear the costs of government policy, either through increased taxation or cutbacks in public services.

Question 43

Type of loan I would take out for a house

Answer 43

Mortgage

Question 44

Then the type of loan I would take out for a car

Answer 44

Medium term loan

Question 45

Name the type of loan, I would take out for groceries

Answer 45

Bank overdraft

Question 46

Tell me about it motor insurance

Answer 46

Motor insurance is compulsory in Ireland. This means that it is required by law and it is a criminal offence to drive without motor insurance.

Question 47

What is third party car insurance

Answer 47

Injury to another person or damage to another person’s car or property caused by the insured driver. It does not cover the policy holder or their vehicle.

Question 48

What is third party fire and theft car insurance

Answer 48

Third party, fire and theft
As per third party, plus compensation for the insured person if their vehicle catches fire or is stolen.

Question 49

What is comprehension car insurance

Answer 49

This benefits all parties and vehicles that suffer loss or injury in an incident, including the insured person and their vehicle.