This is a solved exam paper for the BMP4003 Business Environment course, part of the BSC (Hons) Business Management program. It covers topics such as fiscal policy, unemployment, economic cycles, and market structures. The paper includes explanations, examples, and methods of measurement for each topic.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
BSC (Hons) BUSINESS MANAGEMENT SEMESTER 2, EXAMINATION 2021/22 BUSINESS ENVIRONMENT MODULE NO: BMP4003 Exam Paper Release Date & Time:Saturday 17 September 2022 at 10:00am Submission Cut-off Date & Time:Monday 19 September 2022 at 10:00am --------------------------------------------------------------------------------------------------------------- ANSWER BOOKLET All the pages of the answer booklet should be submitted including blank ones. Please type your answers in the spaces provided. Insert additional pages where required. Student Name ID Number
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Section A 1.Explain the effectiveness of fiscal policy in economic. Numbers of different theories can be used by the government for the successful implementation of the fiscal policy. Being an effective instrument that is able to have the right effect on the work structure and can make it possible to do the various changes in the offerings which such as demands and supply of the product and services. Fiscal policy can create a systematic improvement in the outputs which are manufactured by the business industry which is also known as the gross domestic product. If the revenue generation in the country is relatively in comparison to the amount which is invested, then the fiscal policy is known in the state of contract manner(Opoku, and Yan,2019). Fiscal policy is subjected to modify the arrangement of aggregate demand to support the growth of economy in the nation. Moreover, fiscal policy also influences the other elements such as exchange rates and balance of trade in the economy as it governs the transactional unit of the business firm. During the period fiscal development government can increase the rate of interest and which will work in grabbing the more borrowings in the form of the foreign exchanges. In this several types of benefits which a nation can observe with proper formation of fiscal policies that will stimulate the different types of economic frameworks and focuses on the betterment of the overall gross domestic product. It will also generate the required stability in the country by proper allotment of the rates in the numerous financial working of the government. 2.How would an increase in income tax influence the aggregate demand and theaggregatesupplyintheeconomy?Useexamplestoillustrateyour answer. The term income tax is explained as the portion of income which is being shared by theindividualtothegovernment,inordertohandlethedifferentworkingand infrastructure in the nation (Mosca, 2018). The tax can influence the demand and supply of the country as a whole. When there is increment in the income tax then it may lead to the low demand of the product as consumers have less disposable income with them and they focus on spending less money to purchase the goods and services. By this, suppliers will also decline the overall production which may adversely impact the supply of the product. But if there is low rate of income tax then it reduces the 3of8
sharing amount of the income to the government which will give them opportunity to pay the value for the product and services which they want to purchase. 3.Discuss the three main supply- side policies that the government can use to reduce the unemployment. Thecomplexsituationofunemploymentineconomycanberesolvedbythe government by considering few policies which are discussed below- ï‚·Better education and skill development courses-Knowledge is the main source that will strengthen the work skills of the person (M Abdalla, and Carabias, 2022). Government can work in this direction, by reducing the costs and expenses of the schooling and other academic programs will help in attaining the informed youth in the nation. ï‚·Jobinformation-Bygivingtherightpieceofadvertisementandpublication regarding the job opportunities will helps in informing the people about the vacant job post. This will encourage them to apply for such roles and improves their financial situation. ï‚·Trainingandsubsidiariesfortheunemployed-Themainreasonof unemployment is least trained and support from the government. By providing the cost-effective training and subsidiaries to them will help in making them ready for the jobs. 4.Briefly explain the different types of unemployment and the methods used to measure them. Different types of unemployment which cab be found in nation are listed below- ï‚·Demanddeficient-Thiskindofunemploymentsituationarisesduringthe recession. In this business institution receives low demands for their product and services which are offered by them. ï‚·Frictional-It is the period where a current employee or some individuals looking for some job opportunities. It is the less effective stage because it could be recovered in some period of time (Li, and Yao, 2020). ï‚·Structural-Some fails to get the right position or job roles in the business institution as it does not match the amount skills possess by them and remains jobless for the certain period of time. 4of8
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Voluntary-When the pay scale or the salary is not enough to give the proper support to financial needs of the person, then they starts leaving the jobs by their own choice, which is known as voluntary unemployment. To solve this issue of unemployment like determining the number of unemployed youths in the nation by conducting the regular surveys. For example, in United Kingdom Labour Force Survey is being utilized by the governments to evaluate the situation of unemployment. 5.Identify and describe the four stages of ‘Economic Cycle’. Expansion-The first cycle is related to introduction of new business and operations intheeconomythatwillpromotetheideaofprofitandrevenuegeneration (Kassouri,Alola,andSavaş,2021).Thisphasehelpsinidentifyingthose opportunities through which a nation can works in adopting distinct policies that will guide them in making the effective growth. Peak-This is the second stage which is often comes after the expansion and in this country will reach at that point where there is maximum profit earning. But on the other there is some adverse impact of peak growth on the nation as it creates several irregularities in the economic framework of the nation and it is the duty of the government to resolve them. Contraction-It is the period where the improvement begins and with there are distinct things which are faced by the government in respect to low employment, less growth and deteriorate prices. Trough-When the economy of the nation comes to its lowest phase, then it is termed as trough. It is connected with the recovery face where a country focuses on maintaining the better policies(Zielińska, 2019). Section B 1.Explain how an economy can achieve sustainableeconomicgrowthand analyze the different methods of measuring economic growth. The concept of sustainable economic growth is connected to the fulfilment of basic needs and wants of the consumers, while focusing on the safety of natural surrounding and environment. It is because government of the nation does not want to face nay kind of complexities in the external natural environment, which will hamper the availability of the 5of8
resources for the future generation. A wide range of natural components which are utilized by the government of the country. So, it is their duty to make sure that these factors must be utilized in such a manner that will no wastage and overuse. In addition to this, it should ensure the productivity in the nation. Elements like land, labor, capital, natural resources are such tools which ensure the optimum sustainability and also supports in the growth of the nation. Government can take help of real GDP to find out the growth of the economy. Some of measure which are followed by the government in order to maintain and measure the economic growth- Quarterly growth at an annual rate-If there is positive growth in rate of GDP for thedifferentquartersoftheyear,thenitwillindicatethegoodsignforthe successful rise in the economic structure of the nation(Kassouri,and Altıntaş, 2021). The four quarter or year over year growth rate-By examining the overall growth in relation to the all for four distinct quarters of the year on the regular basis will also help in achieving the information in respect to the economic situation. The annual average growth rate-Government can also include the estimation of the average for the GDP rate of the country. If it shows the better result then it will represent the stimulation in the economy. 2.Monopoly and perfect competition are two market structure at the opposite endofthetwospectrums.Compareandcontrastthetwostructuresto influence our view of which structure is most desirable. About monopoly-There are various forms of market framework is available in the economy of the country, in this one is Monopoly which is about the alone or single seller of the particular goods and services in the market. This type of market structure gives some set of power to the seller where he has all control over, he prevailing condition in the market. A monopolist has the capability to switch condition of the market as per the requirement for the personal growth of the business which is running in the monopoly market. In such market condition the amount competitors is quite less whichisaverygoodsignforthatparticularpersonwhoisconsideredasthe monopolist and with this he can resist the entry of new business institution. This is because he must be offer something unique product whose characteristics are quite tough to imitate by the other business organisation. The restriction regarding the new entry could be associated with the formulation of some economic and legal policies, or 6of8
might be few institutional or artificial guidelines. The main thing which separates the working of the monopoly form other market framework is that it has no substitute for all the set of products and services which they are offering to their consumers. Generally, the goods which are presented by the monopolist is termed as the symbol of status and purchase by those people who have good source of income generation About perfect competition-When there is large number of sellers who are dealing in the same type of product and issue the same value to consumer, then that situation of market is considered as the perfect competition. In this, sellers offer same type of products which have no distinct attributes and due to this, buyers get the various options to purchase them. The set of goods and services in the perfect competition is of homogenous in nature which creates the same pricing strategy for all the dealers who are operating their business in this market. Although there are numbers of sellers present in this market, but still consumers are aware of all types of condition and situation which are prevailing. They arecompletely knownabout thequality and product price which are presented in front of them. The main aim of the sellers in the perfect competition is earn a minimal amount of profit by setting up the affordable prices which could be afforded by the consumers who belong to different sections of income. There is less control of any individual on the prices due to some distinct reasons. If the increase the value of the product and attain extra profit, then new business firm tries to enter in this market and will obstruct the profit earning of the old seller in the perfect competition(BUTOV, and BUDNIKOVA,2022). The monopoly form of the market will be the most suitable structure as in this seller mainly focuses on the quality of the product and with the help of legal formalities, a monopolist can stop other to influence their profit earning. Furthermore, such market framework always try to present some new and innovative products in the market which will assist them to grab the attention of the consumers in the market. Products and services which exist in the monopoly form of the market could be used as the status of symbol, and for this people could be seen to purchase these products more frequently. So, monopoly is the most effective form of market framework as it will support in the better growth of economy too. 7of8
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Reference List BUTOV,A.A.andBUDNIKOVA,A.S.,2022.FEATURESANDSIGNSOFTHE MONOPOLISTIC COMPETITION MARKET. InШкола молодых новаторов(pp. 13-14). Kassouri, Y. and Altıntaş, H., 2021. Cyclical drivers of fiscal policy in sub-Saharan Africa: new insights from the time-varying heterogeneity approach.Economic Analysis and Policy,70, pp.51-67. Kassouri, Y., Alola, A.A. and Savaş, S., 2021. The dynamics of material consumption in phasesoftheeconomiccycleforselectedemergingcountries.Resources Policy,70, p.101918. Li, X. and Yao, X., 2020. Can energy supply-side and demand-side policies for energy saving and emission reduction be synergistic?---A simulated study on China's coal capacity cut and carbon tax.Energy Policy,138, p.111232. M Abdalla, A. and Carabias, J.M., 2022. The Dynamic Effects of Aggregate Demand and Supply Disturbances on the Aggregate Earnings-Returns Relation.Jose M., The Dynamic Effects of Aggregate Demand and Supply Disturbances on the Aggregate Earnings-Returns Relation (March 3, 2022). Mosca, M., 2018. Monopoly power: competition is never perfect. InMonopoly Power and Competition(pp. 81-120). Edward Elgar Publishing. Opoku, E.E.O. and Yan, I.K.M., 2019. Industrialization as driver of sustainable economic growthinAfrica.TheJournalofInternationalTrade&Economic Development,28(1), pp.30-56. Zielińska, A., 2019.The analysis of the unemployment structure in the Gostynin county against the background of the masovian district in years 2014–2017(Doctoral dissertation, Kolegium Nauk Ekonomicznych i Społecznych w Płocku). 8of8