Economics Quiz - Exam Solutions - Module Name - Semester 1

This document provides solutions to an economics quiz, covering topics such as the cost of production, unemployment rate, public and private sectors, and investment. It also explores the influence of legal and political factors on a local business, specifically a restaurant. The quiz questions and answers are presented, along with an analysis of how changes in laws and political climate, such as Brexit and changes in working hours and minimum wages, impact the restaurant's operations and staffing. The solution highlights the practical application of economic principles in a real-world scenario, demonstrating the interconnectedness of economic factors and business decisions.

ASSESSMENT (ONLINE
EXAM)

Table of Contents
QUESTIONS...................................................................................................................................3
1...................................................................................................................................................3
2...................................................................................................................................................3
3...................................................................................................................................................3
4...................................................................................................................................................3
5...................................................................................................................................................3
6...................................................................................................................................................3
7...................................................................................................................................................3

QUESTIONS
1
(c) Cost of production
2
(b) Unemployment Rate
3
(d) Owned by the government and is in public sector
4
(d) Private sector
5
(a) Households and Firms
6
(a) Investment
7
Influence of legal or political factors on business that is located in my neighbourhood:
There is a restaurant nearby called “Ganapati” and it has been immensely affected by the
changes in the political factors specifically. After the Brexit, they are having a difficulty in
maintaining their staff because earlier they had employees who came from the areas that now fall
under EU and due to change of laws, they are basically categorised as immigrants in their own
country. This has created many problems for the hotel manager as these are experienced and
talented staff that he has developed with great effort and loyalty.
In context of legal factors, the change in the number of working hours is one of the key factor
affecting their hotel because due to its popularity, the hotel is opened till late and now manage
has to employ people on shifts increasing its operating costs.
Another legal rate is change in minimum wages and this has also created additional financial
burden on the owner of the hotel.