2.3 The Economic Climate Of Business

Question 1

The Economic climate

Answer 1

describes the state of key factors within a country such

as the level of goods and services produced and the number of jobs available.

Question 2

Interest rates

Answer 2

the cost of borrowing
money or the reward for
saving money, expressed
as a percentage.

Question 3

Overdraft

Answer 3

a flexible
loan which businesses
can use, whenever
necessary, up to an
aqreed limit.

Question 4

Consumer spending

Answer 4

the value of
goods and services
bought by consumers
over a time period,
usually a month or a year.

Question 5

Income elastic products

Answer 5

are those
whose sales are sensitive
to changes in consumers
incomes.