Pre-seen Business Environment 2 exam questions
Exam duration 90 minutes. The questions are worth equal marks.
2 of these questions will be in the exam, and 2 of these questions will be in
the resit exam. NB the resit questions will not necessarily be the other two. All
are equally likely in both the first sit and resit.
1. With reference to the UK economy, discuss whether cutting government
spending is a sensible policy. Ensure that you discuss both sides of the debate
and limit your answers to the underlying economics. In your answer consider
the impact on firms, and make reference to economic models and theories.
(Note well that this question does not ask for a discussion of the associated
politics.)
2. Explain why many analysts think that the Bank of England’s Monetary Policy
Committee are focused on growth rather than the mandated inflation target.
Discuss what has been done with monetary policy to promote economic
growth in the UK, and consider its impacts. Consider the effect on firms and
make use of economic concepts and theories in your answer.
3. The trading relationship between the US and China includes, on both sides,
concerns about protectionist policies. Assess whether or not such policies are a
sensible option in the current economic climate. Make use of economic
models and concepts in your answer, refer to the current so-called ‘currency
wars’, and consider the impact on businesses.
4. Consider the economic arguments for and against the UK joining the
eurozone, from the perspective of businesses in the UK as well as the
economy. In your answer explain, with recent evidence from members of the
eurozone, why this debate is currently largely academic.
Learning outcomes:
1. ANALYSE THE INTERACTION OF THE INTERNAL AND EXTERNAL
INFLUENCES ON A BUSINESS IN ITS ENVIRONMENT, AND GENERATE
SOLUTIONS TO THE PROBLEMS CAUSED BY THAT INTERACTION.
2
.
2. DEMONSTRATE KNOWLEDGE AND UNDERSTANDING OF THE
CONCEPTS OF THE MACROECONOMY AND ITS RELEVANCE TO
BUSINESS.
3
.00
3. ANALYSE AND ASSESS THE VALIDITY OF COMPETING ARGUMENTS
WITH REFERENCE TO KEY MACRO ENVIRONMENT ISSUES.
3
.00
4. COMMUNICATE EFFECTIVELY, INFORMATION AND ARGUMENTS
MAINLY IN WRITTEN FORM.
A pass answer (grade points 4-7) will explain some of the relevant economic
theory correctly, although not in depth, and will make minor reference to the
current business environment and use few sources. Evidence of wider
reading (than class notes) will be limited.
A merit answer (grade points 8-12) will be more detailed than a pass answer,
demonstrating an understanding of links between the theory and the current
business environment with some appreciation for the relative merits of
different relevant aspects, along with evidence of wider reading.
A distinction answer (grade point 13-15) will add to a merit answer with a
more thorough appreciation of the main arguments and some recognition of
the complexities of the economy, It will show an analysis of the relevant merits
of arguments that will be expressed clearly and concisely. Wide reading and
different points of view will be demonstrated in the answers.
NOTE WELL: POLITICS AND MACROECONOMICS ARE OFTEN
INTIMATELY LINKED, BUT YOUR ANSWER SHOULD SHOW AN
APPRECIATION OF THE ECONOMIC CONSIDERATIONS WITH LIMITED
(IF ANY) DISCUSSION OF POLITICS. IT IS YOUR ECONOMIC KNOWHOW THAT IS BEING ASSESSED.