Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

business a level > 2.5 external influences > Flashcards

2.5 external influences Flashcards

1
Q

what s an external influence?

A
  • factors which are beyond the control of the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is GDP (gross domestic product)?

A
  • measures of the value of output (activity) in the economy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is demand?

A
  • how much of a good or service a consumer wants and is able to pay for
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are the 6 external influences?

A
  • political
  • economic
  • social
  • technological
  • legal
  • ethical/environmental
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

how is the anagram for the 6 external influences?

A
  • PESTLE
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is real incomes?

A
  • measures the amount of disposable income available to consumers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what factors affect real incomes?

A
  • price inflation
  • wage growth
  • employment levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what factors affect consumer spending?

A
  • real disposable incomes
  • employment and job security
  • household wealth
  • expectations and sentiments
  • marker interest rates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is an interest rate?

A
  • the reward for saving and the cost of borrowing expressed as a percentage of the money saved or borrowed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is inflation?

A
  • a sustained increase in the cost of living or the general price level leading to a fall in the purchasing power of money
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is the Y and X axis on the business cycle?

A
  • Y= GDP

- X= time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is the business cycle?

A
  • peak/boom
  • recession
  • recovery/expansion
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is the economy like during a peak/boom?

A
  • high investments
  • high confidence
  • high levels of spending
  • higher incomes
  • low unemployment
  • higher inflation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what is the economy like in a recession?

A
  • lower levels of spending
  • falling confidence
  • falling income
  • rising unemployment
  • inflation falls
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what is the economy like in a recovery/expansion?

A
  • increased confidence
  • increased level of spending
  • increasing income
  • declining unemployment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is deflation?

A
  • a sustained fall in the general price level
17
Q

what are 2 causes of inflation?

A
  • demand pull (excess demand)

- cost push (costs rise)

18
Q

what are consequences of inflation?

A
  • money loses its value
  • value of saving is reduced
  • lack of competitiveness
19
Q

what is an exchange rate?

A
  • the price of one currency expressed in terms of another
20
Q

what is SPICED?

A 
S- stronger
P- pound
I- income
C- cheaper
E- exports 
D- dearer
21
Q

what is a monetary policy?

A
  • using changes in the interest rate and money supply to manage the economy
22
Q

what happens when interest rates fall?

A
  • cost of borrowing is reduced
  • greater consumer confidence
  • effective disposable income rises
  • boost in business investments
23
Q

what is fiscal policy?

A
  • involves the use of government spending, taxation and borrowing to affect the level of growth of aggregate demand, output and jobs
24
Q

why does the government tax?

A
  • raise revenue
  • manage aggregate demand
  • change distribution of wealth
25
Q

what’s direct tax?

A
  • tax on income
26
Q

what’s indirect tax?

A
  • tax on consumptions
27
Q

what are 3 main areas if government spending?

A
  • transfer payments
  • current spending
  • capital employed
28
Q

what is a legislations?

A
  • rules and regulations with which a business has to comply
29
Q

what are the main roles of legislations?

A
  • protect consumers
  • fair treatment of employees
  • ensure a level playing field
30
Q

what is a dominant position?

A
  • market share of over 50%
31
Q

what are aims of competition policy?

A
  • wider consumer choice

- effective price competition between suppliers

32
Q

what are abuses of dominant position?

A
  • imposing unfair trading terms
  • excessive, predatory or discriminatory pricing
  • refusal to supply or provide access to essential facilities
33
Q

what are penalties of abusing dominant position?

A
  • up to 10% of annual turnover

- criminal prosecution

business a level (24 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions