C3 PEST Factors

Question 1

Political factors

Answer 1

Instability
National security
Major trading partners
Changes in government
Pressure groups

Question 2

What does fiscal policy consider

Answer 2

Level of taxation and government spending

Question 3

Direct taxes examples

Answer 3

Income
National insurance 
Capital gains
Inheritance
Corporation

Question 4

Examples of indirect taxes

Answer 4

VAT
Excise duty
Council 
Business rates
Customs

Question 5

What is monetary policy used for

Answer 5

Used to regulate inflation via manipulation of interest rates

Question 6

Definition of inflation

Answer 6

Increase in the average price level

Question 7

How do you measure inflation?

Answer 7

Via CPI (consumer price index)

Question 8

Inflation target

Answer 8

2% ± 0.5

Question 9

Inflation caused by increasing production costs

Answer 9

Cost push

Question 10

Inflation caused by factors causing prices to rise as demand rises

Answer 10

Demand push

Question 11

Exchange rate is …

Answer 11

The value of one currency in terms of another

Question 12

3 types of unemployment

Answer 12

Structural
Cyclical
Frictional

Question 13

What causes Demographic change

Answer 13

A change in the structure of the population

Question 14

Automation is….

Answer 14

Robots carrying out repetitive tasks in manufacturing

Question 15

Benefits of automation

Answer 15

Reduced employee costs
Increased productivity
Increased quality
Increased safety

Question 16

Drawbacks of automation

Answer 16

Social costs
Environmental costs
Decreased flexibility
Cost of investment and maintenance

Question 17

How to consumers benefit from technology?

Answer 17

Internet allows comparisons
Increased choice 
Lower prices
Increased quality
Increased convenience

Question 18

Drawbacks to consumers from the use of technology

Answer 18

Increased fraud
Spam calls and emails
Pressure to have latest good

Question 19

Technology impact to businesses

Answer 19

Shortened product life cycle
Faster obsolescence
Easier global communications
Increased flexibility 
Reduce costs