Essential Revision Questions for Theme
2
1.
Large
firms gain a competitive advantage over smaller rivals so they can…….
2.
Define
economies of scale
3.
Internal
economies are where….?
4.
Explain
technical economies of scale
5.
Explain
marketing economies of scale
6.
Explain
managerial economies of scale
7.
Explain
two more economies of scale….
8.
Define
and explain external economies of scale
9.
Explain
minimum efficient scale
10. What is a) a monopsony b) a monopoly
11. Why is brand recognition so important?
12. Draw a diagram to show diseconomies of
scale and give examples
13. Define corporate culture
14. Define organic growth
15. List six ways a business may grow
16. Complete:
Type
|
Organic
|
Inorganic
|
Advantages
|
||
Disadvantages
|
17. What is ‘conglomerate integration’?
18. Define ‘competitive advantage ‘and
explain how R&D may give you a competitive advantage
19. What is the importance of risk
spreading economies?
20. What are the incentives to increase
market power?
21. What is the difference between ‘product
innovation’ and ‘process innovation’?
22. What is the role of Innovate UK?
23. What extension strategies are there for
the product life cycle?
24. How does asymmetric information arise
and what is the significance of this?
25. What is ‘viral marketing’?
26. What are the advantages of online
retailing compared to High Street stores? (Make sure you read: http://bit.do/Jessbringscake)
27. What is ‘viral marketing’?
28. What is micro marketing?
29. Explain ‘creative destruction’
30. Draw and explain ‘the Long Tail’
32. Small firms may differentiate over a)
USP b) flexibility c) customer service d) niche markets e) relationships – make
sure you can expand on each point
33. What is the relevance of ‘ceteris
paribus’ to PED, YED etc?
34. What factors influence PED?
35. How is PED important for a business?
36. List and explain six types of pricing
37. What factors influence the most
appropriate pricing strategy?
38. Demand is price inelastic – would you
gain by raising price?
39. How may price change to reflect social
trends?
40. Non-price competition is using the
marketing mix – what is in the marketing mix?
41. What are the advantages of online distribution
to a) customers and b) businesses?
42. What factors affect the degree of
income elasticity?
43. How income elasticity of is demand
important to a business – and are there limitations to its use?
44. Define ’recession’
45. Define productivity
46. List six factors influencing
productivity?
47. How does productivity affect
competitiveness? (Make sure you read: http://bit.do/Jessbringscake2)
48. How does productivity affect economic
growth?
49. Define ‘human capital’?
50. Define ‘investment’
51. Define a) capital intensive and b)
labour intensive production
52. Much capital is purpose designed – what
is the problem with that?
53. What is the formula for capacity
utilisation?
54. State and explain two different ways of
meeting quality standards
55. Define cell production
56. What is the difference between quality control
and quality assurance?
57. Explain the usefulness of Kaizen
58. What are the disadvantages to JIT?
59. Why are lead times important to lean
production?
60. What is the relevance of market
research to competitive advantage?
61. How have open economies affected
globalisation?
62. Why does structural change come with
globalisation? (Make sure you watch the videos at: http://bit.do/Jessbringscake3 )
63. What is the attraction of the UK to
FDI?
64. What made globalisation possible?
65. What is ‘trade liberalisation’?
66. What are ‘international capital flows’?
67. How do developments in transport and
communication cut the costs of international trade/
68. What is a MNC?
69. Define a) developed economies b) developing economies c) em3erging economies
70. Why is GDP not a very satisfactory indicator
of growth?
71. What does HDI measure and what does it
NOT tell us?
72. What is the difference between mean and
median incomes?
73. Define and explain absolute advantage?
74. Define and explain comparative
advantage?
75. Explain ‘common markets’?
76. What is the connection between international
trade and economic growth?
77. In the context of trade, what are
‘invisibles’?
78. What is a ‘floating exchange rate’?
79. If sterling rises, who loses?
80. If sterling falls, who loses?
81. How might a fall in the exchange rate
cause inflation?
82. What are the stages of th4e economic
cycle?
83. What are ‘animal spirits’?
84. Complete the table:
Boom
|
Downturn
|
Recession
|
Recovery
|
|
Employment
|
||||
Skills shortages
|
||||
Inflation
|
||||
Confidence
|
||||
Investment
|
85. Explain the terms ‘leading and lagging indicators’
86. How MAY a recession affect a firm? (It
depends…..)
87. What are the leakages in the circular
flow of income?
88. What are the injections in the circular
flow of income?
89. The formula for AD =…..?What are
capital goods?
90. What is the ‘balance of trade’?
91. Now watch this:
http://bit.do/Jesshaseatenallthecake1
92. What is a) inflation b) deflation c) reflation?
93. What are a) index numbers and b)
weights?
94. What is the difference between real and
nominal values?
96. How might inflation affect a firm?
97. What is a wage-price spiral?
98. How might inflation affect and
individual?
99. How is unemployment measured?
100.
What
causes structural unemployment?
101.
What
is technological unemployment?
102.
What
are two types of labour immobility and how may the government reduce each?
103.
What
are the main causes of unemployment/
104.
Watch
this and then be able to explain what can cause unemployment: http://bit.do/Jesshaseatenallthecake1
105.
How
might unemployment affect a firm?
106.
How
might unemployment affect and individual?
107.
What
are the four main macroeconomic objectives?
108.
Watch
this and then be able to explain how to reduce demand pull inflation: http://bit.do/Jesshaseatenallthecake1
109.
Why
is zero inflation NOT the target?
110.
What
is on the current account?
111.
What
is an external deficit?
112.
Watch
this and be able to explain how a falling pound may cause inflation: http://bit.do/Jesshaseatenallthecake1
113.
When
does a current account occur?
114.
Watch
this and be able to use it to show the impact of a current account deficit; http://bit.do/Jesshaseatenallthecake1
115.
What
is a) real income b) disposable income?
116.
Explain
expansionary fiscal policy
117.
What
is the difference between a) direct and b) indirect taxes
118.
Define
‘national debt’
119.
What
is a contractionary policy?
120.
What
are austerity policies?
121.
Using
this: http://bit.do/Jesshaseatenallthecake1 explain the possible effect of
austerity policies on the economy
122.
What
decisions are taken by the Monetary Policy Committee?
123.
Using
this: http://bit.do/Jesshaseatenallthecake1 explain the impact of a rise in
interest rates on the economy
124.
List
seven supply side policies?
125.
Using
this: http://bit.do/Jesshaseatenallthecake1 explain the effect of supply side policies
on the economy
127.
Explain
the main macroeconomic policy conflicts. (Also watch here: http://bit.do/Jessnoweatsfruit1)
128.
Explain
the significance of ‘short termism’
129.
What
is ‘sustainable growth’?
130.
What
are a) free market policies and b) interventionist policies?
131.
The
government may intervene using subsidies. Arguments for/against?
132.
The
government may intervene using taxes to reduce market failure. Advantages/disadvantages/
133. The
government may intervene by banning the product – problems?
134.
The
government may intervene for macroeconomic aims – using this: http://bit.do/Jesshasgoneback2cake explain how the government may
intervene to reduce inflation, or stimulate growth.
135.
Is
inflation a problem|?
136.
If
PED = -0.6 what does that tell us about revenue if we raise our prices?
137.
What
are quality circles?
138.
What
is the significance of elasticity if we follow a penetration pricing policy?
