 For
this task you need to
recognise the role of government
in establishing the business
climate through the use of
incentives to business such as
cutting the business rates of tax
or through regional development
policies.

Regional and local government also
have business generation at the heart
of what they do in promoting local
economic wellbeing and there are
plentiful illustrations of how they
create business micro environments.
Outline the role of government in
creating the business climate
 This provides evidence for P4
 Produce
a table showing; “The
Government’s role in the
economy”
 If completed you need to write
a paragraph on the
competitiveness of British
industry and explain what is
meant by Equality
 Write
about The Role of
Government
 What is the difference between
the European Government &
The UK National government?
 How does Local Government
help business?

http://www.bbc.co.uk/news/business10730689
Economic Growth – when the economy
is growing the nation earns more
money each year. The value of the
goods and services produced in the
UK is called GDP-Gross Domestic
Product
 It can be calculated 3 ways; By:
 Expenditure
 Income
 Output
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If we work harder or invest in more
machines/education that will help us produce
more. This will increase productivity.
The more we produce, the more we earn and
the more we have to spend; our Standard of
Living should hopefully improve as well.
Full Employment occurs when everyone who
wants a job can have one, this is beneficial to
the local community, businesses and
government – Why?

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Unfortunately people may lose jobs because
of
Seasonal Unemployment – e.g. a ride
attendant at Alton Towers
Technological Unemployment – machines
replace the skills of humans
Cyclical Unemployment – Recession causes
lack of demand for products or services
Structural Unemployment – whole industries
change/decline – e.g. Bradford Textile
Industry
What is the difference between the
RPI and the CPI?
 What do you understand by these
terms?
 What is the base rate at the moment?
 What is the MPC?
 What is the Balance of Payments?


This provides evidence for P4
You have told me about why the
government wants:
 Steady economic growth
 Full Employment
 Sustained Low Inflation
 A surplus on the balance of payments

 Finally
you need to export a mind
map into word – this needs to
explain the economic cycle
 You need to include notes on
consumption, investment, interest
rates, business confidence,
exports, imports and expenditure
on new projects.