1.5.4 The Economy And Business Flashcards
1
Q
What is unemployment?
A
The number of people looking for work but who cannot find a job at a point in time
2
Q
How does people’s income affect business?
A
If the level is lower they may switch to cheaper alternatives and but if is higher the would have more disposable income
3
Q
What is disposable income?
A
The amount of money remaining after all compulsory expenses are paid
4
Q
What is the average income?
A
£23,000
5
Q
What is inflation?
A
A general rise in prices or a fall in the value of money
6
Q
What is retail price index (RPI)?
A
A measurement of a basket of goods and services representative of what people buy in the U.K.
7
Q
What is consumer price index (CPI)?
A
Similar to RPI but mainly excluding housing costs
