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Flashcards in Pme Deck (15):

Management skills for a business operator?

Business- time management, organisation skills

Leadership- mentoring, clear understanding of the market

Teamwork- communication

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


Define 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


Opportunity cost?

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.


Define deflation?

Price of goods and services drop as know one wants to buy.