2d economic conditions Flashcards
What are economic conditions?
Economic conditions are the status of a country’s financial stability and security.
What is an interest rate?
An interest rate is the price paid for money that has been borrowed that is expressed as a percentage.
E.G - you borrow $100, and you have an interest of 10%, you will end up paying back $110
What are loans?
Loans are sums of money that have been borrowed.
Maths stuff
I=PxRxT P=I/(RxT) R=I?(PxT) T=I/(PxR) I=Interest P=Principle R=Rate T=Time - usually annually or years
What is a tax rate?
A tax rate is the percentage of compulsory payments made to the government.
What is GST?
Goods and Services Tax (GST) is a compulsory payment made to the government based on the value of most goods and services sold.
What is business confidence?
Business confidence is a measure of business owners’ expectations and feelings about future economic performance.
What is consumer confidence?
Consumer confidence is a measure of customers’ expectations and feelings about future economic conditions.
What happens if the confidence is high?
Buy, Borrow, Start, Invest, Go big
What happens if the confidence is low?
Sell, Hold, Downsize, Close, Hold funds
What are some positive contributions?
Social well being Pays tax Builds infrastructure R&D Employs diverse labour force
What are some negative contributions?
Worker exploitation
Political influence
Environmental pollution
Natural resource depletion
What is eofy
end of financial year (june 30) Goes from july to june.
