2.3 - The economic climate of business

Question 1

The economy

Answer 1

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.

Question 2

Consumers

Answer 2

Consumers are individuals who buy goods and services from businesses.

Question 3

economic climate

Answer 3

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

Question 4

Interest rates

Answer 4

Interest rates refer to
the cost of borrowing
money or the reward for
saving money, expressed
as a percentage.

Question 5

An overdraft

Answer 5

An overdraft is a flexible
loan which businesses
can use, whenever
necessary, up to an
agreed limit.

Question 6

Consumer spending

Answer 6

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

Question 7

Income elastic

products

Answer 7

Income elastic
products are those
whose sales are sensitive
to changes in consumers
incomes.