Lesson 3.11.1

3.11.1 Political factors Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.11.1, Political factors: 20 multiple choice questions for the OCR Business (H431), Unit 3: External influences, written with Revision Ninja.

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The 20 questions

  1. What term describes the risk of business loss due to unpredictable government decisions?

    • Social change
    • Economic recession
    • Technological displacement
    • Political uncertainty

  2. Which benefit is most directly gained by a firm operating in a politically stable country?

    • Guaranteed demand
    • Zero taxation
    • Predictable planning
    • Unlimited subsidies

  3. How does high political instability in a target market usually affect international trade volume?

    • Eliminates tariffs
    • Reduces trade volume
    • Increases trade volume
    • Has zero effect

  4. Which level of government decides local planning permission rules for factory extensions?

    • Local government
    • Global trade body
    • Supranational government
    • National government

  5. A government provides financial grants to solar energy firms. What is this intervention called?

    • A quota
    • A subsidy
    • An embargo
    • A tariff

  6. What is a likely immediate business response to an upcoming close general election?

    • Tripling output capacity
    • Cutting selling prices
    • Increasing dividend payouts
    • Delaying major investment

  7. What trade policy places a tax directly on imported foreign goods?

    • Quota
    • Tariff
    • Embargo
    • Subsidy

  8. Which government policy uses changes in taxation and spending to influence business activity?

    • Supply-side policy
    • Monetary policy
    • Trade policy
    • Fiscal policy

  9. A complete ban on trading goods with a specific country is known as what?

    • An embargo
    • A tariff
    • A quota
    • A subsidy

  10. How does an increase in national corporation tax rate affect a company's retained profits?

    • Increases retained profits
    • Reduces retained profits
    • Eliminates gross profit
    • Doubles cash flow

  11. What type of political agreement allows countries to trade goods without paying tariffs?

    • Customs embargo
    • Free trade agreement
    • Monopolistic union
    • Protectionist treaty

  12. A local council introduces congestion charges in a city centre. Which stakeholder group suffers most?

    • Foreign suppliers
    • Remote workers
    • Overseas shareholders
    • Delivery vehicle owners

  13. What physical restriction sets a legal maximum limit on imported goods?

    • Export subsidy
    • Import quota
    • Import tariff
    • Trade surplus

  14. A government nationalises an industry. What happens to ownership of the businesses involved?

    • Becomes non-profit
    • Transfers to shareholders
    • Transfers to workers
    • Transfers to state

  15. What effect does political conflict in an oil-exporting nation typically have on global fuel costs?

    • Increases fuel prices
    • Stabilises fuel prices
    • Eliminates fuel costs
    • Decreases fuel prices

  16. Which international government body can enforce trade rules across European member states?

    • High Court
    • Local council
    • European Union
    • Bank of England

  17. Why might foreign direct investment drop sharply in a nation facing political instability?

    • Labour costs drop
    • Capital risk increases
    • Exchange rates rise
    • Subsidies double

  18. Which political factor directly forces car manufacturers to produce lower-emission vehicles?

    • Environmental regulation
    • Planning laws
    • Import quotas
    • Monetary expansion

  19. How does sudden political instability in a country usually affect its currency value?

    • Currency depreciates
    • Inflation drops
    • Currency appreciates
    • Currency stays fixed

  20. A government deregulates the banking sector. What is the immediate expected effect on market entry?

    • Easier market entry
    • Complete market ban
    • Increased tax rate
    • Harder market entry

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