1539434
Description
Flashcards by Zara Kanani, updated more than 1 year ago
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Created by Zara Kanani
over 9 years ago
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| Question | Answer |
| How many stages of the personal life cycle are there and what are the names of them? | There are 5. *Childhood, *Adolescence *Young Adult *Middle Adult *Late Adult |
| What is the personal life cycle? | It is when peoples needs which start to differ as they get older, income changes and so do priorities. Needs also change. |
| Definition income? | *The total money received from a person's wages interest and dividends. |
| Definition borrowing? | *Getting money from a lender that must be repaid in the future. |
| Definition savings? | *Putting money aside for later use. |
| Definition of needs and wants? | *Needs are essential to us. *Wants are things we can survive without. |
| Definition debt? | *The amount owed pending borrowing. |
| Name 5 needs? | *Food/water *Shelter *Clothes *A good education *Money |
| Name 5 wants? | *Phone, *Car, *Internet *TV *Laptop and Other material items. |
| What are opportunity costs? | When we make a choice to give something up to get something else, so instead of buying a car you could have been able to afford a new phone. |
| Define demand? | *Is the quantity of a good or service that a consumer will purchase at a particular price. |
| What is the basic economic problem? | *This is when resources are limited but needs and wants are infinite. |
| What happens when the demand for a product increases? | *The prices of the product increase, an example of this would be the Iphone. |
| What are the benefits of companies competing? | *They have to start lowering the prices for an item. * They start selling better quality products. *Bring in a greater variety of food. |
| What is the law of demand? |
The greater the price of a product the lower the quantity demanded.
*Here is the demand curve
Image:
demand_curve.gif (image/gif)
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| Name one thing which effects demand? | *The level of income. |
| Name some methods of borrowing? | *Credit Card *Personal loan *Mortgage *Hire purchase *OVerdraft |
| Name some methods of saving? | *High street banks *Investments *National Savings |
| Savings Account? | *Reward= low-median *Risk= low *Short-long term account *Easy to withdraw money |
| ISA? | *Reward= low-medium *Risk= low *Medium-long term account *Easy to withdraw money |
| National savings and Investment account? | *Reward= low *Risk= very low *Medium long term account *You need a written notice to make a withdrawal. |
| Unit Trust? | *Reward= medium/high *Risk= medium/high *Long term account *Accessing the money in this account can take time. |
| What type of loan is a mortgage? | *A secured loan |
| What type of loan is a credit or store card? | *This is an unsecured loan with a high interest rate and flexible payments. |
| What type of loan is a personal loan? | *This is an unsecured loan with a medium interest rate with no flexible payments. |
| What is a hire purchase? | *This is a secure loan with a medium interest rate, but no flexibility with payments. |
| What is an overdraft? | *It is an unsecured loan with a high interest rate, with great flexibility. |
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