Flashcards in Pme Deck (15):
Management skills for a business operator?
Business- time management, organisation skills
Leadership- mentoring, clear understanding of the market
Strategic- decision making and problem solving
Types of unemployment?
Frictional- unemployment due to frictional in the economy. Helps for switching of jobs
Structural- due to structural changes in the economy that eliminate some jobs but free up others
Seasonal- due to seasonal changes e.g a snow power
Cyclical- due to contractions meaning the more well performing the better and the worse the more unemployment
People who are seeking work but cannot be employed
What is complementary goods vs supplementary goods
Complementary good is a good/service that goes well with another good/service e.g a Big Mac and fries
supplementary goods are when a good or service replaces another similar good/ service. Eg is a ps4 for a PS3
Define a need and a want and give an example for each?
Need is is what people believ the nessesity of life. Eg food
Want is a good or service that allows us to enjoy a greater standard of living eg tv
Define good or service and one example for each?
A good is a physical, tangible thing that is visible.
A service is a performance of any duties of work for another
What is the difference between a economy and economist?
An economy is the production or consumption of goods and service for a favour or money
An economist is a person who is in the field of economy, they can study in the field of commerce.
4 types of economies?
Traditional- these people are self sufficient and rely on the goods of food and shelter
Planned- government control what is being produced how it is produced and whom is producing it
Market- the public ...
Mixed- both the people and government have ideas contributing towards the economy
What is goodwill when choosing an existing business?
Goodwill is the average of the profits from the past few years plus the assets minus the liabilities
What are the three stages of production?
Primary stage: farming, extracting natural resources from earth
Secondary: manufacturing, the production of goods to send off to retailers
Tertiary: selling, selling goods and services to consumers at an agreed price
What are the factors of production?
Natural and land: oak tree, raw materials
Human and labour: concretor, all the labour skills + physical labour
Expertise and management: CEO of Nike , all the various skills of managing
Manufacturing and capital: Nike factory, factories in use of producing
Financial resource: money
Define costumer sovereignty?
This is when the producer reacts to the demands of the consumer
When you forfeit a need for a good or service.
Define inflation and what causes inflation?
The measurement of prices, the price of goods and services increases, due to the in excess of goods and services to meet the high demand.