Cycle Test 5 October Flashcards
(38 cards)
What is economic growth
Rate at which an economy of a country is increasing or possibly decreasing over a period of time
What happens when a economy produces more goods and services than last year?
The country is experiencing a positive economic growth
What happens when a economy produces less goods and services than last year
The country is experiencing negative economic growth
What does GDP stand for
Gross (total) Domestic (country) Product
What is a GDP used for
Measure the economic growth of a country - GDP is the total value of all final goods and services produced in a country in a year
What does a higher GDP mean for a country? What happens when the population grows
They are getting wealthier - need to provide more jobs for the population
What is a recession
Difficult time when economic activity decreases + economic growth = low/negative.
What is an economic shock
Unpredictable event that causes widespread disruption = recession (natural disaster/pandemic)
What is a salary
Fixed amount for worker on performance, productivity - end of every month
What is wage
Hourly, daily or weekly payment - amount of work finished in hours, day or week — number of hours - some work overtime for extra money
What is the main difference between salary + wage
Salary = fixed
Wage = not fixed - performance of worker
What is an formal business
- regular working hour
- regular wages/salary
-registered with the government + follows laws - business license
-obtain loans from bank - larger number of consumers
- permanent, recognised address = premises
- official business records
- employees
- owners + worker = trained and skilled
= a proper business
What is an informal business
- irregular working hours (longer)
Lower, daily wages = cash
Not taxed
Not registered = monitored by government
No business license
Cant obtain bank loans
Limited consumers
Easy to start - no starting costs
Usually small (size)
No recognised/fixed business site
No official business records
Usually don’t employ / employ a few
Owners + workers = rely on own skill + talent
How can a natural disaster affect a business
Business can loose their premises + suffer severe property damage = damages suffered economically = millions of rands + long lasting
How can health epidemics and pandemics affect businesses
Cause hardship and financial loss for individuals + businesses - people away from work = productivity suffers = business experience loss of scales opportunities and income
What is risk - taking in an entrepreneur
Not rely on others to tell them what to do + take risks
What is perseverance in an entrepreneur
Nothing stops them from achieving goals, commit for time, effort and hard work
What is discipline in an entrepreneur
Focus on business - don’t get distracted - work methodically don’t postpone anything = do immediately
What is attention to detail in an entrepreneur
Pay attention to small things like customer care + expenses - don’t focus on bigger picture
What is passion in an entrepreneur
Enjoys doing what they do - don’t ind spending extra to to insure of a successful business
What is decision - making in an entrepreneur
Make quick + best decisions for their business
What is self - confidence in an entrepreneur
Believes in themselves + own ability - courage to go be successful
What is competitive in an entrepreneur
Try compete + thrive on competition + not afraid = make them better + improve
What does the S in SWOT mean
Strengths
