Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
HCB makes cars in country X. Its factory employs 200 workers. New technology has caused the business to change its production method. HCB’s Managing Director is thinking about how it can act more ethically. She knows that other firms in country X have begun importing cars. Rising inflation has led to an increase in the interest rate in country X.
(a)[2]
Define what is meant by ‘inflation’.
(b)[2]
Identify two ways technology could alter production methods.
(c)[4]
Outline two ways HCB could become more ethical.
(d)[6]
Explain two ways HCB could be affected by an increase in the interest rate in country X.
(e)[6]
Do you think manufacturing businesses will always gain from the introduction of import tariffs? 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: “A rise in the overall price level of goods and services over time” …