. Flashcards
What is supply
The number of products that a producer is willing to provide to buyers
what is demand
A consumer’s desire to pay a specific price to purchase goods and services
what is the business cycle
it is the fluctuations in an economy over a period of time
what is a expansionary
An expansion in the business cycle is when a business goes through an upturn in economic activity, moving from a trough to a peak.
what is a peak
The highest point in a business or a market cycle. It is where there is a change in income and employment.
what is a trough
It is where there is a downfall before a rise. It is where the business cycle or prices are bottoming, before it goes up into a peak. It consists of recessions and expansions.
what is a contraction
It is the downswing of the business cycle that leads toward a trough
what is deflation
It is a decline in the price of goods and services.
what is inflation
When goods and services increase in prices over a certain time period.
what is recession
A period of weak or negative growth, accompanied by a rise in unemployment.
what is depression
An extreme recession, a severe downturn in economic activity.
what is competitiveness
A Business delivering better value to customers than competitors. It plays a key role in providing advantage.
what is purchasing power
The number of goods or services that a certain amount of money can buy at a given time.
what is deregulation
The elimination of government power in an industry
what are microeconomics
Microeconomics is the study of individual and business economic activity. Two examples are: an individual creating a budget to put themselves in a better financial position; and a business cutting costs in order to maximise profit.
