2.3 Economic Climate Flashcards
What is an economy
The economy is made up of millions of individual consumers, many thousands of businesses and governments. All take decisions on what to buy and produce
What is a consumer
Consumers are individuals who buy goods and services from businesses.
What is an economic climate
The economic climate describes the state of key factors within a country such as the level of goods and services produced and the number of jobs available.
What is m interest rate
Interest rates refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.
What is an overdraft
An overdraft is a flexible loan which businesses can use, whenever necessary, up to an agreed limit.
What is a consumer spending
Consumer spending refers to the value of goods and services
bought by consumers over a time period, usually a month or a year
What is income elastic products
Income elastic products are those whose sales are sensitive
to changes in consumers’ incomes.
