An example of a external benefit.
Jobs will be created
Cost of land
Cost of construction
Labour costs
An example of a external cost.
Pollution
An example of a private cost.
Pollution caused by waste products
Health hazards
Money made from the sale of products
Why might a firm not respond to pressure group activity?
Well organized and funded
The cost to the business of changing its methods is more than the possible cost of poor image and lost sales
They have public support and in the media
Consumer boycotts cause reduced sales
Which one is a pressure group?
SAARC
Greenpeace
WWF
ASEAN
Which one of the following given below is not an external constraint of business?
Technological change: New products.
Technological change: New production processes.
Employees problems
Environmental issues.
Which of the following given below is not an instance when pressure group is less likely to change business actions?
They have popular public support.
Consumer boycott result in much reduced sales
Group is well organized and financed
What the firm is doing is unpopular but not illegal, such as testing drug on animals.
The costs paid by the rest of society, other than the business, as a result of a business decision.
External cost
Private cost
Social cost
Total cost
An example of a private benefit.
Other firms may move into the area to provide services to the firm.
Important products will be produced to benefit the society.
Something that limits or controls the actions or decisions of a business.
Cost
Benefit
Constraint
Restraint
