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Business Studies & Economics > Unit 5 Key Terms > Flashcards

Unit 5 Key Terms Flashcards

(67 cards)

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1
Q

Scarcity of Resources

A

Resources are limited because they are non-renewable.

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2
Q

Economic Problem

A

Unlimited wants and scarce/limited resources which forces us to make choices.

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3
Q

Value

A

How much someone enjoys something, shown by how much they would give up of something else to receive it.

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4
Q

Means of Exchange

A

The method of showing our valuation of something e.g. money.

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5
Q

Opportunity Cost

A

The value of the next best alternative given up when making a choice.

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6
Q

Trade-off

A

The item given up when making a choice.

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7
Q

Revenue

A

The money earned from sales. Selling price x Quantity sold.

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8
Q

Price Sensitivity

A

How sensitive demand is to a change in price.

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9
Q

Substitute (in terms of price sensitivity)

A

A substitute is a product/service you can easily swap to.

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10
Q

Stakeholder

A

An individual or group who has an interest in the actions of a business.

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11
Q

Stakeholder Power

A

Some stakeholders are more influential in the decision making of a business than others.

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12
Q

Conflict of Interest

A

When two or more stakeholders have a different viewpoint on the actions of a business.

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13
Q

Negative Externality

A

The cost inflicted on society as a result of an individuals’ actions that the individual doesn’t pay for.

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14
Q

Positive Externality

A

The benefit inflicted on society as a result of an individuals’ actions that the individual doesn’t get rewarded for.

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15
Q

Measuring Business Success

A

Quantifying the achievements of a business by survival, revenue, profit, market share or ethics.

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16
Q

Competitive Advantage

A

Any factor that helps a business succeed against a rival.

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17
Q

Cash Flow

A

The movement of money in and out of the business.

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18
Q

Gross Domestic Product (GDP)

A

The value of the spending or output, or income in an economy.

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19
Q

Economic Growth

A

An increase in GDP or aspect of GDP.

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20
Q

Inflation

A

An increase in the general level of prices in the economy.

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21
Q

Unemployment

A

The number of people out of work who are actively seeking employment.

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22
Q

Claimant Count

A

A measure of unemployment by counting the number of people claiming unemployment benefit.

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23
Q

Economic Shock

A

An unexpected event that affects the availability and price of resources.

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24
Q

Exchange Rate

A

The value of one currency in terms of another.

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25
Interest Rate
The cost/price of borrowing money and the reward for saving.
26
Taxation
Money raised by the government from taking a share of income, spending and profits.
27
Government Spending
Money spent by the government on essential services that wouldn't be provided by private businesses.
28
Internal Business Growth
An increase in the size of a business as a result of a business' own actions.
29
External Business Growth
An increase in the size of a business as a result of the business' own actions.
30
Merger
Where two businesses join forces and begin trading as one.
31
Takeover
Where one business buys another and incorporates it into itself.
32
Economies of Scale
Where a business benefits from its growth.
33
Diseconomies of Scale
Where a business suffers as a result of its growth.
34
Specialisation
Focusing on one job role, making it easier to become an expert.
35
Monopoly
Where one business dominates the market and has an element of control over it.
36
Natural Monopoly
Where market conditions mean that it is in everyone's best interest for a business to be in a monopoly position.
37
Collusion
Where several firms act together to effectively become a monopoly.
38
Competition Commission
A government organisation that prevents businesses taking advantage of their position.
39
Pressure Group
An organisation set up to influence businesses and/or government to protect stakeholders.
40
GDP per Capita
The amount of GDP per person. How GDP is spread between people in the economy. GDP divided by population.
41
Standard of living
A measure of overall wellbeing or quality of life and of people in the economy. Includes GDP/income but also includes other factors such as life expectancy, crime and literacy etc.
42
Human Development Index
A survey/indicator/measurement done by the UN to measure standard of living.
43
Distribution of Income
How the income in an economy is spread out/shared/divided up amongst all the people in the economy.
44
Sustainable Growth
Level of Economic Growth that meets the needs of current generation without affecting future generations.
45
Renewable Resources
Resources that can be recreated at least as fast as they are consumed.
46
Corporate Social Responsibility
A policy where businesses exceed/do more than their basic responsibilities.
47
Government Intervention
When the government uses tax, subsidies or regulation to influence how businesses behave.
48
Subsidy
Money provided by the government as an incentive for businesses to act in a certain way.
49
Self-regulation
Where a business voluntarily agrees to follow its own Code of Conduct.
50
Government Regulation
Where the government uses laws and punishments to influence how businesses behave.
51
Absolute Poverty
Where individuals cannot afford things required for an adequate standard of living.
52
Relative Poverty
Where individuals cannot afford things that are part of normal life in their society.
53
Poverty Threshold
The amount of income required to achieve an adequate standard of living.
54
Inequality
Where there is relative poverty in a country or area.
55
Lesser Economically Developed Country (LEDC)
A country that has a relatively low standard of living and lacks the capacity to produce manufactured goods.
56
Trade Barrier
A measure used by one country to make it less attractive to import goods from other countries.
57
Tariff
A trade barrier that works by putting a tax on imports.
58
quota
A trade barrier that works by a limit on the number of items that can be imported.
59
Subsidy (2)
A trade barrier that works by supporting domestic producers so that they have competitive advantage over foreign companies.
60
Protectionism
Using trade barriers to shield companies in your economy from international competition.
61
Free Trade
No barriers to trade between two economies.
62
Single Market
A group of economies that agree to act as one larger economy with no restriction of trade between members.
63
Single Currency
A way of improving the effectiveness of a single market by removing the trade barrier of currency exchange.
64
The European Union (UN)
Europe's single market.
65
Multinational
An organisation that has facilities in more than one country.
66
International Government
Organisations that try and co-ordinate individual governments, so that individuals governments act in the best interest of the world.
67
Non-governmental Organisations
Not for profit organisations that are set up to promote the interests of a specific stakeholder.

Business Studies & Economics (1 decks)

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