25 Key Revision Questions For GCSE Economics.

By Ernest Stevens,2014-01-10 02:29
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25 Key Revision Questions For GCSE Economics.

25 Key Revision Questions

    Sean wants to launch a new press up bar to make it more comfortable when completing press ups. His fixed costs are ?3,000 and variable costs are ?1,800. He thinks he will sell 2000 per month at ?7 each. Sean reckons he would need ?150,000 start-up capital to start his business.

    1. Explain two sources of finance that might be appropriate for Sean to start up

    his business. For each give one advantage and one disadvantage.

    2. What is the total revenue for 2000 products?

    3. What are the total costs for 2000 products?

    4. How much profit or loss is made on 2000 products?

    5. Think of three things that could effect the accuracy of his sales forecast of

    2000 per month

    6. Sean is hoping to employ 10 staff from the beginning. Outline two legal

    requirements he must understand as an employer

    7. Suggest two ways that Sean could motivate his new employees

    8. Explain two ways the current trend in the UK economy of low interest rates

    affect Sean’s business

    9. Sean also wants to develop his bars for export to the US. Explain how a weak

    pound will help him

    Alfie is setting up a sandwich shop. He had considered entering into the subway franchise as a franchisee but in the end decided to set up as an independent shop as a sole trader. He hopes to sell 4000 sandwiches a month at ?2.50 each. He has fixed costs of ?6000 and variable costs of ?1.50 per sandwich.

    10. State two potential advantages Alfie would have benefitted from if he had

    entered the subway franchise

    11. Why do you think Alfie chose an independent business

    12. Alfie was advised at the time to construct a market map for the local sandwich

    market in his area and place his business on it. State two reasons why this

    might be useful for Alfie

    13. What is the total revenue for 4000 products?

    14. That is the total costs for 4000 products?

    15. How much profit or loss is made on 4000 products?

    16. In this case what advice would you give Alfie?

    17. Alfie is now considering whether or not to register his business as a Private

    Limited Company (Ltd.). Explain two reasons why Alfie should register his

    company as an Ltd.

    18. After a few months trading Alfie has seen the importance of keeping cash in the

    business and having a savings account so that he can pay any debts when they

    come due. Because of this he does not want to use all of his cash to pay for

    stock each week. Suggest and explain two appropriate sources of finance that

    he could use to buy this stock so that he can keep an healthy amount of cash in

    his business

    Gino is opening a new hair salon for men Goodfellas Ltd. The idea is that the salon will be positions in the market as a barber but will be able to charge higher prices because of the quality and stylish hair cuts on offer He has fixed costs of ?7000 and variable costs of 50p per haircut. He hopes to cut 500 mullets per month at a price of ?10 per cut

    19. We are told that Gino is seeking to add value by offering stylish cuts. Can you

    suggest two other ways that he could add value to his service?

    20. What is the total revenue for 500 cuts?

    21. That is the total costs for 500 cuts?

    22. How much profit or loss is made on 500 cuts?

    23. What things could he do to make more profit?

    24. Identify two taxes that Goodfellas Ltd. will have to pay

    25. What do you think is the most important characteristic Gino will need to success

    as an entrepreneur, why?

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