Business 0450 · IGCSE · Economic issues

Economic issues — practice question

DPC runs 200 takeaway pizza outlets. More than 75% of its pizzas are ordered through e-commerce. The Managing Director believes 2017 was a successful year. She remarked: ‘Looking ahead, there are signs that the economy is growing.’ Even so, DPC faces several challenges. The Government intends to raise the minimum wage to $5 per hour. DPC also has to react to environmental pressures. Food waste and litter from discarded pizza boxes are problems. Complaints from the local community about this are too high?
(a)[2]

Identify two indicators of business success.

(b)[2]

Identify two characteristics of a growing economy.

(c)[4]

Identify and explain two ways an increase in the minimum wage could affect DPC.

(d)[6]

Identify and explain two benefits to DPC of using e-commerce.

(e)[6]

Explain two ways DPC could respond to environmental pressures. Recommend which of the two options it should choose. Justify your answer.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Expansion / number of shops

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