1.5.4 The Economy & Business

Question 1

Consumer incomes:

Answer 1

the amount households
have available to spend after income taxes have
been deducted.

Question 2

Economic climate:

Answer 2

like the weather, the economy
can run cold or hot; the economic climate is a
measurement of the current economic outlook,
which might be promising or worrying.

Question 3

Exchange rate:

Answer 3

the value of one currency
measured by how much it will buy of other
currencies.

Question 4

Taxation:

Answer 4

charges placed by government on
goods, imported goods and the incomes of
individuals and companies.