2.3 - The Economic Climate Of Business

Question 1

The economy

Answer 1

Made up of millions of individual consumers, many thousands of businesses and gov.s. All make decisions on what to buy and produce

Question 2

Consumers

Answer 2

Individuals who use goods and services produced by a business

Question 3

The economic climate

Answer 3

Describes the state of key factors within a country such as the level of goods and services produced and the number of jobs available

Question 4

An Overdraft

Answer 4

A flexible loan which businesses can use, whenever necessay, up to an agreed limit

Question 5

Consumer Spending

Answer 5

Refers to the value of goods and services bought by consumers over a time period, usually a month or a year

Question 6

Income elastic products

Answer 6

Those whose sales are sensitive to changes in consumers’ incomes

Question 7

Interest Rates

Answer 7

Refers to the cost of borrowing money or the eward for saving money, expressed as a percentage