Economic Variables (Leaving Cert Business): Flashcards
📚Flashcards
Practise the cards
10 cards from this deck
ShowHide
Practise the cards
10 cards from this deck
Economic variable
Economic variable
Measurable factor reflecting economic performance
Inflation
Inflation
Rate prices rise, reducing purchasing power
High inflation impact on sales
High inflation impact on sales
Reduces purchasing power → lower sales
High inflation impact on costs
High inflation impact on costs
Higher input costs (raw materials & wages)
Interest rates
Interest rates
Cost of borrowing money (annual % of loan)
High interest rates impact on sales
High interest rates impact on sales
Reduces spending on big-ticket items (houses/cars)
Employment rate
Employment rate
% of working-age population employed
High employment impact on sales
High employment impact on sales
Increases sales (more disposable income)
Exchange rates
Exchange rates
Value of one currency for conversion to another
Strong domestic currency & exports
Strong domestic currency & exports
Makes exports more expensive & less competitive