revision Flashcards
(31 cards)
What does GDP stand for?
Gross Domestic Product
GDP is the total market value of all finished goods and services produced within a country’s borders in a specific time period.
What happens to GDP during economic growth?
GDP increases as income rises and spending increases
More money allows the government to spend on public services like schools, police, and hospitals.
What occurs when the economy goes into recession?
GDP decreases due to reduced government spending
During recessions, the government has less money, leading to cuts in public services.
What are some impacts of decreased GDP on consumer behavior?
- Reduced consumer spending
- Higher interest payments
- Less disposable income
- Bigger overheads
These factors can lead to further economic decline.
How are changes in price related to consumer buying habits?
When the price of a good or service goes up, consumers change their buying habits
Conversely, if the price goes down, consumers may also maintain their buying habits.
Fill in the blank: GDP is measured in _______.
Income
True or False: Increased government spending typically occurs during periods of recession.
False
During recessions, government spending typically decreases due to reduced income.
What characterizes the response of consumers when the price of a good increases?
Consumers abandon buying habits
They may seek alternatives or reduce consumption in response to higher prices.
What is one consequence of higher interest rates on consumers?
Higher interest payments
This can lead to less disposable income for consumers.
Characteristics of inelastic goods
When the fright of a good or service goes up consumers buying habits stay about the same and when the price goes down consumer habits also remain unchanged
What subsidy?
Subsidy is a benefit given by the government to a group or individual informs of cash or tax breaks
Benefits of subsidy
Can assist struggling industries by lowering the burdens placed on them or encouraging new developments with financial support
What is total float
Is the amount of time an activity can be delayed from a start date without delaying the finish of the product?
Free float
Free float is the amount of time activities can be delayed without causing delay on the next activity
What’s CPA? (critical path analysis)
Is a technique used to identify the sequence of task for the term the short as possible duration to complete a project?
what job production?
Involves firm reducing items that meets a specific requirement of the customer
Advantages of job production
Add value
Meet customer needs
Motivational
Higher quality
Disadvantages of job production
Time consuming
Skills labour
No opportunity for economics of scale
What is batch product?
Batch production occurs when many similar items are produced together
Advantages of batch production
More flexibility
More chance of economies of scale
Flexibility
Faster than job production
Disadvantages of batch production
Potential for demotivation
Time lost switching between batches
Need to stock work in progress
What is flow production?
Flow abduction involves continuous movement of items through the production process
Advantages of flow production
Standardised products
Economies of scale should lower the cost per unit of production
