theme 1

Question 1

what are the principles of consumer laws

Answer 1

-services should be provided with reasonable care
-goods should be delivered and installed with safety
-products sold should be of good quality
-consumers have the right to reject or return goods

Question 2

what are the principles of employment laws

Answer 2

-all employees should be paid at least minimum wages
-employees should not be discriminated against
-redundancy procedures should be fair
-health and safety requirements should be met

Question 3

what are the benefits and drawbacks of legislation laws on businesses?

Answer 3

• costly to pay workers minimum wage or maintain health and safety regulations
• employees may be more motivated leading to more productivity
  -legal action taken against the business

Question 4

what might change the level of demand in the economy

Answer 4

recession-demands will fall
changes in taxation-increase in tax reduces customer’s disposable income
interest rates-if rates fall, borrowing will increase
exchange rates-imports are more expensive

Question 5

list three impacts of unemployment

Answer 5

-easier to recruit new employees
-lower consumer demand
-economic activity falls

Question 6

what is inflation

Answer 6

the change in the average level of prices in the economy

Question 7

list two impacts of inflation

Answer 7

-business costs to rise unexpectedly.Can raise prices of products
-reduces consumer’s disposable income

Question 8

list three ways a business can respond to external influences

Answer 8

-cut investment and spending if economic activity is low
-lower prices against new competitors
-change policy to adhere to legislation