Economic Environment NCV Level 4 — Memo
November 2022 — NCV Level 4 — Economic Environment
NCV Level 4
2022
NCV Business
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Q1— Section header —
1.1.10
1.2.1True
1.2.2True
1.2.3False
1.2.4False
1.2.5True
1.2.6False
1.2.7False
1.2.8True
1.2.9False
1.2.1020
Q2— Section header —
2.1.10
2.2The circular flow model is an economic model that presents how money, goods, and services move between sectors in an economic system. The circular flow model shows the interaction between two groups of
2.3Taxes
2.4Total spending = C (household consumption\ + G (government expenditure\ + I (investment expense\ Z (net exports\. (5\ [20 TOTAL SECTION A: SECTION B
Q3— Section header —
3.1The c onsumer price index is a measure that examines the weighted average price of a basket of consumer goods and services, such as transportation, food, and medical care. Increasing rate of inflation means consumers pay money for the same
3.5A rise the price of petrol leads to a fall in demand for cars (assuming the price of car is constant\ because cars and petrol are complementary goods,
3.6Price stability Full employment Balance of payments equilibrium [40]40
Q4— Section header —
4.1Is when a company buys a debt or invoice from another company or is a technique where an enterprise sells its accounts receivable ( i.e., invoices\ to a factor for immediate payment less a small discount.
4.2Exporter: The seller sells goods and receive payment according to the factoring agreement Export factor: is the exporter s bank or local factoring house which receives money from the importer in the foreign country
4.3Airway bill Certificate of origin Insurance certificate Packing list
4.4Factoring reduces your bookkeeping costs and your overhead expenses Factoring allows you to make cash payments to your suppliers, which means you can take advantage of discounts and reduce your production costs.
4.5Search for information about a customer Check the invoices a client brings for factoring. whereas economic growth refers to an increase in the real gross domestic product Establish criteria for determining the category of municipality to be
Q5— Section header —
5.1Restore water supply Supply clean water using water tanker trucks Provide temporary residential un its and rebuild partially damaged house Repair and rebuild infrastructure such as roads, bridges and schools that
5.2s important for any government to manage disasters. allocates resources does rational planning and ensures sustainable development Disaster management and planning is a key part of government work.
5.3Surpluses generated from services money is used to compare the value of different items in the goods market. Store of value: money can be stored and used at a later date if it has not lost value. Standard of deferred payment:
5.5A community needs access to primary health care Law and order are necessary in a community Childre n need a school to go to Places for community gathering
5.6Improving local production technique Adding value to locally produce commodities Improving local economies
5.7.140
Q6— Section header —
6.1.1Absolute advantage refers to the ability to produce a certain good or service at lower cost (i.e., more efficiently\ than another party.
6.1.2Promissory note is a written undertaking signed by the customer promising to pay the exporter when they have receive the goods
6.1.3
6.2When a market price is p itched above the equilibrium price, there is surplus in the market This encourages sellers to lower their prices and the lower the price the higher the demand Conversely, if the market is set below the equilibrium price, shortage will
6.3Foreign direct investment is founding or purchasing businesses and their associated infrastructure in a foreign country whil foreign portfolio investment is the purchase of securities like
6.4
6.5Exporting is risky International trade is more complicated than sticking to a domestic market The international trade environment changes rapidly and if you want to export it necessary to be aware of and monitor these changes.
6.6Sign contract with the local export factor Accept the terms and agree that all money will be paid to the factor Agree to pay the export factor interest on early money received Must specify item to the export factor
Topics Identified
5
Business EnvironmentsForms of OwnershipBusiness FunctionsLeadershipBusiness Plan
Mark Allocation
Sections20 + 40 + 40 + 40 + 40 = 180 marks
Paper information
TitleMemo
SubjectEconomic Environment
LevelNCV Level 4
Document typeNCV Business
Year2022
MonthNovember
Pages7
Downloads3
Examination context
Decade2020s
Years ago4y
SeasonSpring (SH)
Start dayTuesday
Exam periodNovember 2022
Days since exam1,439
About Economic Environment examination preparation
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