2.3 How changing economic circumstances Impacts businesses Flashcards
1
Q
The economy
A
Made up of millions of individual consumers, thousands of businesses and governments
2
Q
Consumers
A
People who buy goods and services from businesses
3
Q
The economic climate
A
The state of key factors within a country such as the level of goods and services produced and the number of jobs available
4
Q
Interest rates
A
The cost of borrowing money or the reward for saving money
5
Q
Overdraft
A
A flexible loan which businesses can use, up to an agreed limit
6
Q
Consumer spending
A
The value of goods and services bought by consumers over a period of time
7
Q
Income elastic products
A
Those whose sales are sensitive to changes in consumers’ incomes
