Scribd Logo
Upload

Welcome to Scribd!

  • 38 views

    Principles of Business For CSEC®: 2nd Edition

    Uploaded by

    yuvita prasad
    This document provides answers to chapter questions from a principles of business textbook. It addresses topics like the role of government in an economy, types of taxes, reducing inequality, subsidies, customs duties, and infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Principles of Business For CSEC®: 2nd Edition

    Uploaded by

    yuvita prasad
    38 views3 pages
    This document provides answers to chapter questions from a principles of business textbook. It addresses topics like the role of government in an economy, types of taxes, reducing inequality, subsidies, customs duties, and infrastructure.

    Original Description:

    fgdgdg

    Original Title

    Chapter_9_online_test_answers

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides answers to chapter questions from a principles of business textbook. It addresses topics like the role of government in an economy, types of taxes, reducing inequality, subsidies, customs duties, and infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    38 views3 pages

    Principles of Business For CSEC®: 2nd Edition

    Uploaded by

    yuvita prasad
    This document provides answers to chapter questions from a principles of business textbook. It addresses topics like the role of government in an economy, types of taxes, reducing inequality, subsidies, customs duties, and infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Principles of Business for CSEC®

    2nd edition

    Answers to Chapter 9: The role of government in an


    economy
    1. The correct answer is (B). Rapid fluctuations in the rate of inflation will make it difficult for
    investors to predict returns on investment as a result of changes in price levels.
    2. The correct answer is (D). Sustainable development is a desired path to economic growth,
    while at the same time conserving and enhancing environmental resources.
    3. The correct answer is (D). Pensions and other benefits (such as disability and sickness
    benefits) are paid out of the national insurance fund.
    4. The correct answer is (A). Technical support is non-financial in nature and includes providing
    knowledge and research-based advice to farmers, as well as practical demonstrations on
    how to improve crop yields.
    5. (a) Answers could include any three of the following:
    • Income tax/pay as you earn (PAYE)
    • Corporation tax
    • Capital gains tax
    • Capital transfer tax

    Mark Scheme
    Answers should include any three of the above.

    (b) 
    (i) Answers could include any four of the following:
    • Security of the state
    • Protection of the general welfare of citizens
    • Job security and severance benefits to workers
    • Protection of the environment
    • Maintenance of a safe environment for investors
    • Regulation of business activity in terms of providing clear guidelines as to how
    to set up businesses

    Mark Scheme
    Answers should include any four of the above.

    1 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
    Chapter 9: The role of government in an economy
    (ii) Answers could include the following points:
    • Inequality is reduced by using taxes
    • Greater taxes are paid by those with higher incomes, reducing their disposable
    income
    • The money collected through taxes is redistributed to lower income earners as
    social services or welfare benefits

    Mark Scheme
    Answers could gain 1 mark for indicating the policy used by government, 1 mark for
    indicating the impact on higher income earners, and 1 mark for indicating the impact
    on lower income earners.

    (c) (i) Answers could include the following points:


    • Subsidies are paid to the poultry producers to reduce their costs
    • This encourages them to increase output or reduce their prices

    Mark Scheme
    Answers giving a limited outline gain 1 mark; answers giving a good outline gain
    2 marks.

    (ii) Answers could include the following points:


    • Customs duties increase the prices of imports
    • This makes local prices more competitive
    • It makes local users switch to buying local poultry, encouraging the industry
    to grow

    Mark Scheme
    Answers giving a limited outline gain 1 mark; answers giving a good outline gain
    2 marks.

    (d) 
    (i) Answers could include the following points:
    • Roads and transport are important because workers use these to get to and
    from work
    • This helps them to earn a living
    • This in turn increases standards of living

    Mark Scheme
    Answers could gain 1 mark for indicating why infrastructure is important, 1 mark for
    indicating the impact on citizens, and 1 mark for indicating how citizens develop.

    2 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019
    Chapter 9: The role of government in an economy

    (ii) Answers could include the following points:


    • Roads and transport are important because businesses need to access
    resources and transport goods
    • This increases the production of businesses
    • This means that businesses will grow and have a greater chance of survival

    Mark Scheme
    Answers could gain 1 mark for indicating why infrastructure is important, 1 mark
    for indicating the impact on businesses, and 1 mark for indicating how businesses
    develop.

    3 Principles of Business for CSEC®, 2nd edition © Oxford University Press 2019

    You might also like