2.3 The Economic Climate Of Business

Question 1

The economy

Answer 1

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

Are indivudals who buy goods and services from businesses

Question 3

Economic climate

Answer 3

Describes the state of key factors within a country such as the levelof goods and services produced and the number of jobs avaliable

Question 4

Intrest rates

Answer 4

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

Question 5

Overdraft

Answer 5

Is a flexiable loan which businesses can use, whenever necessary, up to an agreed limit