Unemployment and inflation (Edexcel GCSE Business): Flashcards
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Definition of unemployment
Definition of unemployment
People actively seeking work unable to find employment
Two ways to measure unemployment
Two ways to measure unemployment
Benefit registrations and surveys of job seekers
Effect of high unemployment on recruitment
Effect of high unemployment on recruitment
Easier to attract job applicants
Downside of recruiting when unemployment is high
Downside of recruiting when unemployment is high
Unemployed may lack current skills/experience
Effect of high unemployment on consumer spending
Effect of high unemployment on consumer spending
Reduces consumer demand for products/services
Effect of unemployment on sales
Effect of unemployment on sales
Falling sales revenue
Definition of inflation
Definition of inflation
Rate at which prices across economy are rising
Tool used to measure inflation
Tool used to measure inflation
Consumer Price Index (CPI)
Items tracked by CPI
Items tracked by CPI
Food, housing, clothing, other consumer products
Effect of inflation on business costs
Effect of inflation on business costs
Sharp rises in operating costs
Effect of inflation on consumer purchasing power
Effect of inflation on consumer purchasing power
Disposable income effectively decreases
Double impact of inflation on businesses
Double impact of inflation on businesses
Rising costs and reduced customer demand
Type of influence: unemployment & inflation
Type of influence: unemployment & inflation
External influences businesses must adapt to
Sector most affected by unemployment
Sector most affected by unemployment
Luxury goods retailers (vs essential services)