The economic climate (OCR GCSE Business): Flashcards

Income levels, employment rates, consumer spending

Money from employment, investments, and other sources

Increases purchasing power, higher sales and profits

Reduces spending, decreases sales and profits

% of labour force unemployed and actively seeking work

More income to spend, boosts sales and profits

Reduces consumer spending, negatively impacts sales & profits

Increase in sales as consumers have more money to spend

Luxury goods sales increase more than necessities

May see fall in sales as consumers switch to quality goods

Cut production, reduce waste, increase productivity

Improve productivity, lay off workers, reduce wage bills

Cheaper loans, renegotiate overdrafts, cut interest payments

Enhanced advertising, change features, lower prices