Lesson 3.19.1

3.19.1 External factors and influences Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.19.1, External factors and influences: 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. Which element of a PESTLE analysis considers changes in country demographic structures?

    • Political
    • Social
    • Legal
    • Economic

  2. What type of government policy controls economic activity through taxation and public spending?

    • Monetary policy
    • Protectionist policy
    • Fiscal policy
    • Supply-side policy

  3. What does the acronym SPICED stand for regarding currency exchange rates?

    • Soft pound costly
    • Slow pound cheap
    • Strong pound cheap
    • Strong pound costly

  4. Which economic term describes a general and persistent rise in the price level?

    • Recession
    • Deflation
    • Inflation
    • Stagflation

  5. Which law sets the legal minimum hourly pay rate for workers in the UK?

    • National Minimum Wage
    • Employment Rights Act
    • Equality Act
    • Working Time Directive

  6. What type of policy uses interest rates and money supply to influence economic activity?

    • Fiscal policy
    • Monetary policy
    • Regional policy
    • Trade policy

  7. Which stage of the business cycle is characterised by falling GDP for two consecutive quarters?

    • Boom
    • Recession
    • Recovery
    • Slump

  8. Which type of tax is levied directly on the profits of UK limited companies?

    • Capital gains tax
    • Income tax
    • Corporation tax
    • Value Added Tax

  9. If the UK pound appreciates against the euro, what happens to UK export prices abroad?

    • They remain constant
    • They decrease
    • They become zero
    • They increase

  10. A rise in the UK base interest rate will most likely cause consumer spending to do what?

    • Double
    • Decrease
    • Remain unchanged
    • Increase

  11. An ageing UK population presents an immediate market opportunity for producers of which products?

    • Nursery equipment
    • Healthcare items
    • Skateboards
    • Youth fashion

  12. If inflation rises rapidly, what happens to the real purchasing power of fixed cash incomes?

    • It falls
    • It stays constant
    • It rises
    • It doubles

  13. Which trade barrier is a physical limit on the volume of goods imported into a country?

    • Subsidy
    • Tariff
    • Import quota
    • Embargo

  14. If a foreign currency weakens against the pound, importing raw materials from that country becomes what?

    • Unchanged in cost
    • More expensive
    • Cheaper
    • Illegal

  15. A government increases the legal national living wage. What is the direct financial impact on firms?

    • Higher sales revenue
    • Lower fixed costs
    • Higher variable costs
    • Lower corporation tax

  16. What form of inflation occurs when rising raw material prices force businesses to increase product prices?

    • Deflationary pressure
    • Cost-push inflation
    • Demand-pull inflation
    • Hyperinflation

  17. Which external force is directly addressed when a firm complies with GDPR rules regarding customer data?

    • Legal factor
    • Demographic factor
    • Economic factor
    • Ethical factor

  18. High national unemployment usually benefits an expanding business in which specific operational way?

    • Higher product demand
    • Higher market prices
    • Easier recruitment
    • Increased staff turnover

  19. Which economic term describes government protection of domestic industries through import taxes?

    • Quota
    • Deregulation
    • Subsidy
    • Tariff

  20. What term describes consumers choosing products based on a business's moral and environmental impact?

    • Brand loyalty
    • Price sensitivity
    • Conspicuous consumption
    • Ethical consumerism

All OCR Business quizzes