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Description
Flashcards by James Dodd, updated more than 1 year ago
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Created by James Dodd
over 6 years ago
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| Question | Answer |
| Resources | Things that are needed in order to satisfy wants, e.g. money, time, staff or land |
| Scarce Resources | A situation where there aren't enough resources for everyone to get what they want all of the time |
| Means of exchange | A method for allowing transactions to take place, e.g. money or (years ago) gold |
| Satisfaction | The enjoyment received when consuming a product or service (or resource) |
| Value | The worth of soemthing represented by the amount of money we are prepared to pay for it |
| Choices | Decisions that need to be made as a result of having scarce resources |
| Oppurtunity Cost | The value of the next best alternative that has been given up |
| Trade-off | The item we have to give up in order to get something else |
| Price sensitivity | How much the demand changes according to a change in the price. Price sensitivity depends on numerous factors, most notably the number, price and availibilty of substitutes |
| Substitute | A rival product that a consumer can switch to if the price of a product changes |
| Revenue | The money earned from selling products and services. It is calculated by multiplying the selling price by the quantity sold. |
| Conflict of interest | Where different groups of stakeholders each have a different perspective on an issue |
| Power and influence of a stakeholder | Some stakeholder are more influential in the decision-making of a business |
| Stakeholder | An individual, group or organisation that is interested in the actions and success of a business |
| Negative Externality | A cost inflicted on other stakeholders when an individual or business makes a choice |
| Positive Externalities | A benefit shared by other stakeholders when an individual or business makes a choice |
| Market Share | A company's sales as a percentage of the entire sales in a particular market |
| Profit | What revenue is left after costs have been paid |
| Competitive advantage | Any factor that helps a business succeed when fighting against a direct rival |
| Cash | The money the firm holds in notes and coins and in its bank account |
| Cash Flow | The movement of money into and out of the firm's bank account |
| Changing demand | Businesses have to adapt their plans depending on whether demand is increasing or decreasing |
| Economic growth | The rate at which demand is changing in the economy |
| Consumer Price Index | A percentage figure that shows how much prices are increasing per year |
| Cost of living | When prices are rising people describe the cost of living as increasing |
| Inflation | An increase in the general price level of prices in an economy |
| Claimant count | The measure of unemployment used by the UK government. It counts the number of people claiming Job Seekers Allowance to estimate the number unemployed |
| Unemployment | The number of people out of work and actively seeking work |
| Shock | An unexpected event that affects the economy in terms of availability and price of resources or products |
| Currency | The unit of money in a particular country or region |
| Exchange rate | The price of one currency in terms of another |
| Bank of England | The instituion responsible for setting the interest rate on a monthly basis |
| Interest Rate | The percentage that shows how expensive it is to borrow money and how beneficial it is to save it |
| Government Spending | Money spent by the government to provide essential services that profit-driven businesses would not |
| Taxation | Money raised by the government from taking a share of income, spending and profits |
| External growth | An increase in business size as a result of a merger or takeover |
| Internal growth | An increase in the business size as a result of the business's own actions or decisions |
| Merger | Where two businesses agree to join forces and begin trading as one |
| Takeover | Where one business purchases another and incorporates it into its own operations |
| Economies of scale | When a business benefits from its growth |
| Diseconomies of scale | When a business suffers as a result of business growth |
| Specialisation | Focusing on one job role, making it easier to become steadily more expert |
| Collusion | Where several firms act together to effectively become a monopoly |
| Monopoly | Where a single supplier dominates the sales in a market and therfore has a degree of control over it |
| Natural monopoly | Where market conditions mean that it is in everyone's best interest for a business to be in a monopoly position |
| Competition Comission | A UK and EU government organisation that prevents businesses taking advantage of their market position |
| Government regulation | Where the Government uses laws and punishments to influence how the businesses behave |
| Self-regulation | Where companies voluntarily agree to create and follow their own code of conduct |
| Corporate Social Responsibility (CSR) | A policy to convince stakeholders in a business that its actions are in the best interests of society, not just those of its shareholders |
| Pressure groups | An organisation set up to influence businesses and government to protect stakeholders |
| Economic Growth | Occurs when gross domestic product increases from one period of time to another. It is shown as a percentage change |
| Gross Domestic Product (GDP) | The measure of the value of goods and services produced in an economy over a period of time |
| Standard of living | How economists look at an indivdual's share of the national income |
| GDP per capita | The amount of income the country has overall, divided by its population to give the income per person |
| Human Development Index (HDI) | The United Nations' measure of standard of living it includes GDP per capita as well as education and health care |
| Distribtion of income | How the national income is shared among the population. It can reveal if very few take the majority of the income or if it is shared equally |
| Renewable resources | Resources that are recreated by the environment at least as fast as they are consumed |
| Sustainable growth | A level of economic growth that meets the needs of current generations while preserving the environment so future generations can meet their needs |
| Basic responsibilities | Measures put in place by the Government to prevent businesses damaging the environment and exploiting stakeholders |
| Governmenent Intervention | When the Government uses taxation, subsidies or regulation to influence how businesses behave |
| Regulation | When the Government uses laws and punishments to influence how busineeses behave |
| Subsidy | Money provided by the Government as an incentive to individuals or businesses to act in a certain way |
| Taxation | Money raised by the Government by taking a slice of the income and spending of households and businesses |
| Absolute poverty | Where individuals cannot afford things required for an adequate standard of living |
| Inequality | A word to describe the fact that there is relative poverty in a country or area |
| Poverty threshold | The minimum level of income necessary to achieve an adequate standard of living |
| Relative poverty | Where individuals cannot afford things considered part of normal life in their society |
| Exporting | Selling products produced in one country to customers in another country |
| Importing | Buying products produced in another country |
| Less Economically Developed Country (LEDC) | A country that has a relatively low standard of living and lacks the capactity to prodcue manufactured goods |
| Trade | When economies begin to benefit from exchanging goods with each other |
| Free Trade | There are no barriers to trade between two economies |
| Protectionism | Using trade barriers to shield companies in your econmy from international competition |
| Quota | A limit on the number of goods that can be imported |
| Trade subsidy | A handout given to home producers to make imported goods uncompetitive |
| Tariff | A tax on the import of goods |
| Trade barrier | A measure used by one country to make it less attractive to import goods from other countries |
| European Union (EU) | Europe's single market, a trade bloc which allows free trade between all members |
| Single currency | A way to improve the effectiveness of a single market by removing the trade barrier of currency exchange |
| Single market | A group of economies that agree to act as one larger economy with no restriction on trade between the members |
| Multinational | An organistaion that has facilities (offices, factories, etc) in sevreal countries |
| International Government | Organisations that try to coordinate the effects of indivdual governments |
| Charities | Organistaions comitted to raising awareness and money for a cause such as world poverty |
| Non-Government Organisations (NGO) | Not-for-profit organisations that are separate from government and set up to promote the interests of the poor (and the environment) and relive their suffering |