STEEPLE/PESTELE

Question 1

What does STEEPLE stand for?

Answer 1

Social
Technological
Envronmental
Economic
Political
Legal
Ethical

Question 2

What is the European Union?

Answer 2

The economic and political union of most European countries aimed at reducing trade barriers and harmonizing economic policy

Question 3

What is the Euro Zone?

Answer 3

A group of European countries who have adopted the Euro as their currency

Question 4

What are the key policies of the EU?

Answer 4

Laws must be followed by all countries
Freedom of movement to all EU citizens
Freedom of trade in the single market

Question 5

What are some reasons to leave the EU?

Answer 5

UK is EUs biggest export - will want to be trade partners
UK will have freedom from EU Law
Won’t have to pay an admission fee

Question 6

What are some reasons for not leaving the EU?

Answer 6

The UK will lose access to the single market

There will be a restriction in movement of people

Question 7

What are some political factor which could affect businesses?

Answer 7

Brexit 
EU
The competitive markets authority
Privatisation
Minimum wage

Question 8

What social factors could affect a business?

Answer 8

Demographic change 
Change is social habits 
Change in employment habits
Change in role of women
Changing attitude to work
Education required for longer

Question 9

What is ethics?

Answer 9

It is the judgment about whether something is morally right or wrong

Question 10

What are some examples of ethical considerations?

Answer 10

Selling arms to countries at war
Placing high prices on medicine
Use of child labour to allow family to live
Bosses to earn huge bonuses despite poor performance

Question 11

What are the different types of pollution?

Answer 11

Air pollution - Industrial processes
Water pollution - Plastics and chemical waste
Land pollution - Deforestation
Noise pollution - Motorways and airports
Congestion - Petrol and land used for roads

Question 12

Sustainability is …

Answer 12

preventing the negative impacts of economic activities on Earth and its environment

Question 13

What are some government measures to protect the environment?

Answer 13

Sustainable development strategy
Climate change levy
The carbon trust 
Carbon trust standard 
Congestion charge
Alternative energy sources

Question 14

What is the Climate Change Levy?

Answer 14

A tax on the use of energy in industry and commerce

Question 15

What is the Carbon Trust?

Answer 15

A government body which offers advice to businesses on reducing carbon emissions

Question 16

What is the Carbon Trust Standard?

Answer 16

A kitemark that shows a business has reduced its carbon footprint

Question 17

How can a business act sustainably?

Answer 17

Recycling schemes
Disposing of chemicals correctly
Water and energy saving 
Paperless systems 
Using alternative energy sources

Question 18

What is Gross Domestic Product (GDP)?

Answer 18

The total value of output produced by an economy in a year

Question 19

Economic growth is …

Answer 19

the annual percentage change of GDP

Question 20

A recession is …

Answer 20

when the is negative economic growth for two consecutive quarters/periods

Question 21

How can a business facilitate economic growth?

Answer 21

Invest in human capital - training

Invest in physical capital - better machines

Question 22

How can the government facilitate economic growth?

Answer 22

Encourage investment
Invest in infrastructure
Improve human capital - better education

Question 23

What does economic growth cause?

Answer 23

Higher standards of living

Question 24

What are standards of living?

Answer 24

The amounts of goods and services a person can buy with their income in a year

Question 25

What is inflation?

Answer 25

The persistent general tendency for the average price in the economy to rise

Question 26

What is the consumer price index (CPI)?

Answer 26

A measure that examines the weighted value of an average basket of goods/services

Question 27

What is the effect of inflation on exports?

Answer 27

It makes export less competitive as it raises their price for the foreign countries

Question 28

What is the effect of inflation on investments?

Answer 28

As it becomes more expensive for foreign countries to invest

Question 29

Why does inflation cause uncertainty?

Answer 29

Because it makes it difficult to calculate the profits from investments

Question 30

What are exchange rates?

Answer 30

The value of one currency in terms of another

Question 31

If the pound increases can you buy more or less of foreign currencies?

Answer 31

More

Question 32

What does SPICED (Hint: Exchange rates)

Answer 32

``` Strong Pound Imports Cheap Exports Deer Invert it for a weak pound ```

Question 33

How can you tell if something is an import?

Answer 33

If the money is leaving the country

Question 34

How can you tell if something is an export?

Answer 34

If the money is entering the country

Question 35

Why might a currency weaken?

Answer 35

Less demand for the currency due to low-interest rates and uncertain foreign investment

Question 36

Why might a currency strengthen?

Answer 36

Higher demand due to high interest rates and foreign investment

Question 37

What are the short-term solutions to combating fluctuating exchange rates?

Answer 37

Do nothing - accept lower mark up | Cut overheads

Question 38

What are the long-term solutions to combating fluctuating exchange rates?

Answer 38

Change to domestic suppliers Increase prices Focus on exports`

Question 39

Interest rates are ...

Answer 39

the reward for saving and the cost of borrowing expressed as a percent of the original amount

Question 40

Who set the interest rates in the UK?

Answer 40

The Monetary Policy Committee (MPC) which are part of the Bank of England

Question 41

What is the relationship between interest rates and inflation?

Answer 41

Increase in interest rate reduces spending and therefore demand which causes a decrease in inflation as prices fall to meet demand

Question 42

What is the relationship between interest rates and exchange rates?

Answer 42

If interest rates are high the pound will be strong as the will be high demand from increased foreign investment

Question 43

What is unemployment?

Answer 43

When people who are willing and able to find a job are not able to find employment

Question 44

How does GDP, employment and standard of living link together?

Answer 44

As employment rises there are more people in work producing goods and services which increases GDP. This leads to an increase in GDP per capita so each person is spending more so standard of living increases

Question 45

What is the balance of payments/trade?

Answer 45

The difference between the value of imports and exports

Question 46

A trade deficit is...

Answer 46

When the value of imports exceeds the value of exports

Question 47

A trade surplus is?

Answer 47

When the value of exports exceeds the value of imports

Question 48

What is a indirect tax?

Answer 48

Taxes on expenditure paid to the tax authority by the supplier not the consumer

Question 49

What is a direct tax?

Answer 49

These are taxes on income, profits and wealth paid by the bearer to the tax authorities

Question 50

What is income tax?

Answer 50

A tax taken out of a persons income

Question 51

What is national insurance?

Answer 51

A tax paid as contribution to the NHS and pensions paid by employee and employer

Question 52

What are some examples of direct tax?

Answer 52

National insurance Income tax Corperation tax

Question 53

What are some examples of indirect tax?

Answer 53

VAT | Tabacco/alcohol/petrol tax

Question 54

What are the main purposes of taxation?

Answer 54

Generate revenue for the government Control economic activity - stamp duty for house prices Influence expenditure on certain items

Question 55

What is a subsidy?

Answer 55

Payments form the government to suppliers to reduce costs

Question 56

What are some legal factors?

Answer 56

Contract law - contracts must be upheld Sales of goods act - satisfactory quality Weights and measures act - must be accurate Data protection act - only for fair use National minimum wage Health and safety act Smoking in the workplace

Question 57

What are the advantages of technological improvement?

Answer 57

``` Increased efficiency Communication easier Reduced cost - long run Remote working Reduce physical storage space Employees learn a new skill - motivation ```

Question 58

What are the disadvantages of technological improvement?

Answer 58

``` High innital cost Redundancies Might need specilists to run Staff training Decreased motivation as workers resist change ```