Unit 1.3.4 Economic Conditions Flashcards
(13 cards)
1
Q
Interest rate
A
- The price paid
- For money that has been borrowed
- Expressed as a percentage
2
Q
Economic conditions
A
The status of a country’s financial stability + security
3
Q
4 elements of the business cycle
A
- Expansion
- Contraction
- Peaks
- Troughs
4
Q
Expansion
A
- Increased consumer spending
- Rising sales + profits
- Falling unemployment
5
Q
Contraction
A
- Decreased consumer spending
- Decreased sales + profit
- Rising unemployment
6
Q
Peaks
A
- Sales + profits at highest levels
- Business operating at full capacity
- Low level of unemployment
7
Q
Troughs
A
- Sales + profits at highest levels
- Consumer spending at lowest
- High unemployment
8
Q
Tax rate
A
- Percentage of income/spending
- Required to be paid to the government
- By individuals or businesses
9
Q
Employment level
A
- Measured as the percentage of the labour force
- Working in paid employment
10
Q
Labour force
A
- The number of people aged 15+
- Who are willing + able to work
11
Q
Unemployment rate
A
- Percentage of labour force
- Who are unemployed
12
Q
Business confidence
A
- Measure
- Of business owners’ expectations + feelings
- About future economic performance
13
Q
Consumer confidence
A
- Measure
- Of consumers’ expectations + feelings
- About future economic conditions
