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Edexcel IGCSE Business Studies 1.6 Government objectives & policies Question Bank

Practise how government spending, legislation, trade policy and interest rates shape business costs, demand and strategic decisions.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • explain how taxation, public services or legislation affect a business or country
  • apply trade bloc benefits or tariffs to market access and business activity
  • evaluate interest rate changes using case evidence on borrowing costs and demand

Covered syllabus points

1.6.1 Government spending1.6.2 How governments affect business activity1.6.3 Effects of interest rates on businesses and consumers

1.6 Government objectives and policies question 1

[Maximum number: 1]

Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.

The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.

Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.

There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.

Which one of the following is an example of a public service provided by the government?

Select one answer.

A

Clothing retailer

B

Police force

C

Mobile phone provider

D

Grocery store

1.6 Government objectives and policies question 2

[Maximum number: 3]

Premier Inn wants to retain its employees so it can continue to maintain the service it provides for guests.

Explain one advantage for a country of being in a trading bloc.

1.6 Government objectives and policies question 3

[Maximum number: 6]

Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify Studio's aim is to have 'a communal art space where people can come together and paint, where people would be given as much creative freedom as they would have if they were in their own spaces.'

Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can purchase art materials after attending the studio.

Artify Studio is a profit-making organisation with a social element. It employs seven part-time people, all of whom are art enthusiasts.

Analyse the effect of a decrease in interest rates on Artify Studio.

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