2.3 - The economic climate of business Flashcards
1
Q
The economy
A
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.
2
Q
Consumers
A
Consumers are individuals who buy goods and services from businesses.
3
Q
economic climate
A
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
4
Q
Interest rates
A
Interest rates refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.
5
Q
An overdraft
A
An overdraft is a flexible loan which businesses can use, whenever necessary, up to an agreed limit.
6
Q
Consumer spending
A
Consumer spending refers to the value of goods and services bought by consumers over a time period, usually a month or a year.
7
Q
Income elastic
products
A
Income elastic products are those whose sales are sensitive to changes in consumers incomes.