CCEA Business Studies A2 Unit 2 questions and answers
2025 A+ Grade
Macro economics
- correct answer The study of the performance and behaviour of an economy as a whole.
mixed economy
- correct answer An economic system that allows both the government and the private sector to allocate
resources, e.g. the UK has a mixed economy.
Business Cycle
- correct answer A measure of the regular fluctuations in the level of economic activity. It is made up of
the following elements: peak, recession, trough and recovery.
Gross Domestic Product (GDP)
- correct answer The value of goods and services produced by an economy over a specific time period.
Peak (Boom)
- correct answer The stage when an economy is at the peak of activity.
Recession
- correct answer Income and output begin to fall and business confidence is reduced.
Trough (Slump)
- correct answer The lowest point in the trade cycle - production is low, businesses close and
unemployment is high.
Recovery
- correct answer At this stage income will start to rise and business output will increase, firms will invest
more, consumers will start to increase spending and businesses will start to recruit new workers.
, Business Confidence
- correct answer An economic indicator that measures the amount of optimism or pessimism that
business managers feel about the prospects of their companies/organisations.
Government Policy Objectives
- correct answer A series of actions through which the authorities attempt to create the best possible
economic environment for business and individuals. The main targets are: steady economic growth,
controlled inflation, low unemployment, stable exchange rates and a balanced balance of payments.
Economic Growth
- correct answer An indication of the change in output or income within the economy.
Sustainable Development
- correct answer Growth which continues year on year.
Inflation
- correct answer A continuing tendency for prices to rise.
Unemployment
- correct answer The number of people who are of working age but not in a job.
Balance of Payment
- correct answer An accounting record of all monetary transactions between a country and the rest of
the world
Current Balance
- correct answer The difference between the value of money entering and leaving a country as a result
of trade in goods services and transfers.
Imports
- correct answer Goods and services purchased from abroad for use in a particular country.
Exports
- correct answer Goods and services sold by a particular country to another country.
2025 A+ Grade
Macro economics
- correct answer The study of the performance and behaviour of an economy as a whole.
mixed economy
- correct answer An economic system that allows both the government and the private sector to allocate
resources, e.g. the UK has a mixed economy.
Business Cycle
- correct answer A measure of the regular fluctuations in the level of economic activity. It is made up of
the following elements: peak, recession, trough and recovery.
Gross Domestic Product (GDP)
- correct answer The value of goods and services produced by an economy over a specific time period.
Peak (Boom)
- correct answer The stage when an economy is at the peak of activity.
Recession
- correct answer Income and output begin to fall and business confidence is reduced.
Trough (Slump)
- correct answer The lowest point in the trade cycle - production is low, businesses close and
unemployment is high.
Recovery
- correct answer At this stage income will start to rise and business output will increase, firms will invest
more, consumers will start to increase spending and businesses will start to recruit new workers.
, Business Confidence
- correct answer An economic indicator that measures the amount of optimism or pessimism that
business managers feel about the prospects of their companies/organisations.
Government Policy Objectives
- correct answer A series of actions through which the authorities attempt to create the best possible
economic environment for business and individuals. The main targets are: steady economic growth,
controlled inflation, low unemployment, stable exchange rates and a balanced balance of payments.
Economic Growth
- correct answer An indication of the change in output or income within the economy.
Sustainable Development
- correct answer Growth which continues year on year.
Inflation
- correct answer A continuing tendency for prices to rise.
Unemployment
- correct answer The number of people who are of working age but not in a job.
Balance of Payment
- correct answer An accounting record of all monetary transactions between a country and the rest of
the world
Current Balance
- correct answer The difference between the value of money entering and leaving a country as a result
of trade in goods services and transfers.
Imports
- correct answer Goods and services purchased from abroad for use in a particular country.
Exports
- correct answer Goods and services sold by a particular country to another country.
