Questions and Answers of Business Economics And Managerial

Explain how economies of scale coupled with economies of scope and the experience curve can together enable a firm to achieve competitive advantage.
Analyse ways in which economies of scale can enable a global business to dominate a range of international markets.
Can a firm concentrate on both differentiation and cost leadership?
How can competitive advantage enable a business to succeed in a market economy? What are the principal sources of competitive advantage?
How is institutional economics different from neoclassical economics? What new dimensions does institutional economics bring to the study of economic change?
What are institutions? What are the principal institutions in a market economy? To what extent do these institutions encourage stability or change?
What is a market economy and why might such an economy be exposed to fluctuation and change?
What is a risk register and how does this enable a business to manage economic risk?
Why does climate change present one of the biggest risks to all organisations?What actions could these firms take to mitigate these risks?
Identify five key ways in which the external economic environment can impact on business.
Why is the Triple Bottom Line so important? What does clear and transparent ESG reporting tell you about a company?
Why do you think environmental economics has been neglected until recently? Is it possible to combine environmental economics with classical and neoclassical economics?
Study the Brundtland definition of sustainable development. Explain how it encapsulates the concepts of futurity, intergenerational equity and intragenerational equity.
Explain the concept of the ‘total economic value’ of projects and plans. How does the total economic value differ from the net benefit of a project?
Explain how ‘technocentric’ and ‘ecocentric’ views of sustainability differ.How might government policy- making differ depending on which of these approaches is applied? Do you think that
What is meant by the net economic value of a project? Explain how this would be calculated?
How does the Triple Bottom Line model enable a business to formulate plans, policies and performance indicators?
Identify four policies and measures that countries could adopt that were recommended by the Kyoto Protocol.
How can cost– benefit analysis help to conserve environmental assets?
How can the ‘tragedy of the commons’ be applied to the growth of modern economies?
Draw a diagram to illustrate the economic impact of subsidising the production of a specific product of your choice.
How do taxes and subsidies work as incentives?
What are the main arguments used to support and criticise a shift in emphasis from a focus on direct taxes to indirect taxes. Relate your answer to taxes such as income tax, corporation tax and VAT.
Explain the difference between progressive and regressive taxes and between direct and indirect taxes. In each case provide one or more examples.
Why is the current government seeking to reduce the PSBR?
What are the main sources of government revenue?
What are the main types of government spending in the UK economy?
What are automatic stabilisers? How might income tax operate as an economic stabiliser? Relate your answer to: (a) a boom in the economy; and (b) a recession in the economy.
How is the view of classical economists and monetarists different to that of Keynesian economists in relation to how fiscal policy should be used to manage the economy?
What are the main weapons of: (a) fiscal policy; and (b) monetary policy?
What are the key functions of money and which of these functions are threatened in a period of inflation?
What do you understand by the term ‘quantitative easing’? How might quantitative easing help an economy in a period of recession? Who would be responsible for quantitative easing?
What was Milton Friedman’s view about appropriate changes in the quantity of money in an economy over time?
Explain the way in which Milton Friedman adjusted the original quantity theory of money.
What is the Monetary Policy Committee? What decisions does it make? What actions could the monetary policy take in a period of rising inflation?
What are the main functions of the Bank of England?
What important recommendations did the Walker Report make in relation to corporate governance of BOFIs?
In what ways are ordinary high street banking operations different from investment banking?
What is meant by the creation of credit? How does the financial system depend on customers having confidence in the banks?
What is money? Can banks create money?
What is the relationship between market models of economic growth and globalisation?
What are the characteristics of the BRICS? Identify one other country that shares similar characteristics with at least one of the BRICS – and explain how.
What level of market involvement would you recommend for a UK- based business entering a relatively unstable but potentially lucrative overseas market?
What are the disadvantages of FDI to a host country? Why might it welcome FDI despite these disadvantages?
How can GSAs help UK- based companies to engage in more global business activity?
What is the difference between a quota and a tariff? What part do these restrictions have to play in the globalisation process?
Is globalisation a process that increasingly gains momentum over time or is this an inaccurate representation of views about the globalisation process?
Which do you think has contributed most towards the development of a global economy – the WTO, the IMF or the BRICS Bank?
To what extent does the recent financial crisis support a ‘first wave’ view of globalisation?Or does it coincide more with a ‘second wave’ or ‘third wave’ view?
Define the following: (a) multinational company; (b) transnationality index;and (c) foreign direct investment.
What are the ‘terms of trade’?
Why did the UK exit from the EU? What were the main arguments for and against leaving the EU?
What are the benefits and costs of having a single economic currency?
What are the key economic features of the EU?
In what ways has the development of the EU involved a deepening process(i.e., greater integration) and in what ways has a widening process (expansion)occurred?
How is a floating exchange rate different from a fixed one?
Describe the typical pattern of the UK’s balance of payments on current account.
Outline the structure of the balance of payments accounts.
What are the main benefits to a country from engaging in international trade?
Differentiate between absolute and comparative advantage. How does comparative advantage provide a basis for international trade specialisation?
What would an ‘ideal’ set of economic indicators look like for business?
How can rapidly rising inflation make it difficult for businesses to make plans?
What does the consumer price index measure? What is the rate of inflation?
What key changes have taken place in employment patterns in the UK economy in recent times?
Why might GDP per capita not be a particularly effective measure of human welfare. What alternative indicators might be used to measure well- being?at are headline indicators? Why are they
Explain the following terms: GDP measured using purchasing power parity;and GDP per capita. Why might a country have a relatively high GDP and a relatively low GDP per capita?
What are economic indicators? Which economic indicators are particularly significant for business and why?
How can the market take account of environmental degradation and pollution?
To what extent do the realities of global economic change (such as the financial crisis, and the economic impacts of Covid and the war in Ukraine) limit the ability of governments to choose which
To what extent is the concept of Big Society and the Third Way congruent with that of free market capitalism?
Contrast the views of the role of individuals in the Third Way social investment society and in the Big Society.
What is the relationship between economic ideas and economic policymaking?How then are economic ideas likely to impact on business?
What was Keynes’ view of the role of the state in the management of the economy?
How did Keynes’ view of full employment differ from that of the classical economists?
Contrast the roles of monetary policy and fiscal policy in Keynesian and classical economic theory.
What were the key developments in neoclassical economics that built on the earlier work of the classical economists?
What is a free market? What did Adam Smith see as being the role of the free market in society?
What is environmental policy? How can the government encourage the growth of new green industries?
What is the difference between monetary and fiscal policy? How can the government use monetary and fiscal policy to stimulate the economy?
What actions can the government take to support regions where economic performance is relatively weak?
Explain how and when the government might use: (a) accelerative; and(b) decelerative industrial policies.
What is the national debt? Explain how the size of the national debt can change over time. What are the implications for the credit rating of a country?
How does the government operate as a producer and as an employer? To what extent has this role changed over time?
How can markets be said to fail? What actions can the government take to combat market failure?
How might the government’s industrial or regional policy clash with its competition policy?
How can the government seek to stabilise economic fluctuations resulting from the trade cycle? Is it appropriate to seek to stabilise the economy in this way?
Rank what you consider to be the government’s top ten economic roles in order of importance. Explain your order of ranking.
Identify a recent example of a proposed takeover or merger that has been examined by the Competition and Markets Authority. What were the recommendations made as a result of the investigation into
What are the three main types of activity that competition law is based on?
What sorts of considerations should a government take into account so as to ensure that its interventions in markets do not distort them in such a way as to limit competition or to hurt consumers?
What are some of the main actions that a government can take to make markets work better?
What sort of ideology underpins support for the free market model?
What is the significance of ‘crowding out’ in economics?
Why might the government choose to privatise an industry?
Why might the government choose to nationalise an industry?
What are the main benefits of a market economy when compared with a planned economy?
What are some of the key reasons why the government becomes involved in economic decision- making in a market economy?
Explain how each of the following economic factors are likely to impact on strategy formulation: (a) changes in interest rates; (b) recession; (c) economic growth; and (d) changes in wage rates in
Who in the organisation should be responsible for formulating corporate strategy? Why is it important for those that shape strategy to have a good understanding of the economic environment?
What do you see as being: (a) the controllable elements of strategy formulation;and (b) the uncontrollable?

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