The economy and business (Edexcel GCSE Business): Flashcards
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Practise the cards
14 cards from this deck
What is economic climate?
What is economic climate?
Level of demand & spending in an economy at any time
What does GDP measure?
What does GDP measure?
Total value of goods & services produced in a country
Four sources of demand in economy
Four sources of demand in economy
Consumers, government, businesses, overseas
Effect of high demand on businesses
Effect of high demand on businesses
Improved sales & reduced risk
Effect of low demand on businesses
Effect of low demand on businesses
Declining sales & increased risk
Effect of falling interest rates on demand
Effect of falling interest rates on demand
Increases demand (borrowing cheaper, saving less appealing)
Effect of rising interest rates on demand
Effect of rising interest rates on demand
Reduces demand (borrowing costlier, saving more attractive)
Effect of weak pound on UK exports
Effect of weak pound on UK exports
UK goods cheaper for foreigners, increases overseas demand
Effect of higher taxes on demand
Effect of higher taxes on demand
Reduces demand (less disposable income)
Effect of lower taxes on demand
Effect of lower taxes on demand
Increases demand (more disposable income)
Economic boom definition
Economic boom definition
Period of high demand & economic activity
Recession definition
Recession definition
Period of low economic activity & demand
Effects of high economic activity (3 key)
Effects of high economic activity (3 key)
Incomes rise, unemployment falls, inflation may increase
Effects of low economic activity (3 key)
Effects of low economic activity (3 key)
Incomes fall, unemployment rises, inflation may decrease