Cycle Test 5 October

Question 1

What is economic growth

Answer 1

Rate at which an economy of a country is increasing or possibly decreasing over a period of time

Question 2

What happens when a economy produces more goods and services than last year?

Answer 2

The country is experiencing a positive economic growth

Question 3

What happens when a economy produces less goods and services than last year

Answer 3

The country is experiencing negative economic growth

Question 4

What does GDP stand for

Answer 4

Gross (total) Domestic (country) Product

Question 5

What is a GDP used for

Answer 5

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

Question 6

What does a higher GDP mean for a country? What happens when the population grows

Answer 6

They are getting wealthier - need to provide more jobs for the population

Question 7

What is a recession

Answer 7

Difficult time when economic activity decreases + economic growth = low/negative.

Question 8

What is an economic shock

Answer 8

Unpredictable event that causes widespread disruption = recession (natural disaster/pandemic)

Question 9

What is a salary

Answer 9

Fixed amount for worker on performance, productivity - end of every month

Question 10

What is wage

Answer 10

Hourly, daily or weekly payment - amount of work finished in hours, day or week — number of hours - some work overtime for extra money

Question 11

What is the main difference between salary + wage

Answer 11

Salary = fixed
Wage = not fixed - performance of worker

Question 12

What is an formal business

Answer 12

• 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

Question 13

What is an informal business

Answer 13

• 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

Question 14

How can a natural disaster affect a business

Answer 14

Business can loose their premises + suffer severe property damage = damages suffered economically = millions of rands + long lasting

Question 15

How can health epidemics and pandemics affect businesses

Answer 15

Cause hardship and financial loss for individuals + businesses - people away from work = productivity suffers = business experience loss of scales opportunities and income

Question 16

What is risk - taking in an entrepreneur

Answer 16

Not rely on others to tell them what to do + take risks

Question 17

What is perseverance in an entrepreneur

Answer 17

Nothing stops them from achieving goals, commit for time, effort and hard work

Question 18

What is discipline in an entrepreneur

Answer 18

Focus on business - don’t get distracted - work methodically don’t postpone anything = do immediately

Question 19

What is attention to detail in an entrepreneur

Answer 19

Pay attention to small things like customer care + expenses - don’t focus on bigger picture

Question 20

What is passion in an entrepreneur

Answer 20

Enjoys doing what they do - don’t ind spending extra to to insure of a successful business

Question 21

What is decision - making in an entrepreneur

Answer 21

Make quick + best decisions for their business

Question 22

What is self - confidence in an entrepreneur

Answer 22

Believes in themselves + own ability - courage to go be successful

Question 23

What is competitive in an entrepreneur

Answer 23

Try compete + thrive on competition + not afraid = make them better + improve

Question 24

What does the S in SWOT mean

Answer 24

Strengths

Question 25

What does the W in SWOT mean

Answer 25

Weaknesses

Question 26

What does the O in SWOT stand for

Answer 26

Opportunities

Question 27

What does the T in SWOT stand for

Answer 27

Threats

Question 28

The history of banks - what happend in the year 1300BC?

Answer 28

Greece and Rome became the leaders in money lending

Question 29

What is the story behind the word ‘banco’

Answer 29

Traders set up shops/benches called ‘banco’ which were used to exchange money, make loands and weighed coins - later led to ‘bank’

Question 30

What was the coin in Florence called

Answer 30

Florin

Question 31

What year and what country was the first national bank in

Answer 31

Sweden was the first national bank in 1668

Question 32

What is the worlds oldest surviving bank

Answer 32

Sweden national bank

Question 33

What did the bank of England do

Answer 33

Printed the first cheques

Question 34

How many signatures did the first bank notes have? How did people feel about paper money

Answer 34

8 signatures, it took awhile for people to adapt and the didn’t accept its value

Question 35

Where was the first credit card issued

Answer 35

A bank in America

Question 36

What year and what country introduced first internet banking service

Answer 36

A bank in America in 1981

Question 37

What are primary needs

Answer 37

Essential needs - necessary for survival = food, water, shelter, clothing and sanitation

Question 38

What are secondary needs

Answer 38

Wants - our desire and become important when primary needs are satisfied = non-essential needs = makes lives easier, more enjoyable - entertainment/leisure - wants are unlimited