2nd Year Christmas Tests Flashcards
Name 2 pricing strategies
Cost plus pricing and competitive pricing
Define the term taxation
Taxation is the way the government collects money to pay for public services.
The Office of the Revenue Commissioners (‘Revenue’ for short) is the state body responsible for collecting all taxes in the Republic of Ireland.
Define the term current expenditure
Current expenditure: Money spent by the government on a regular or ongoing basis.
The majority of government current expenditure involves day-to-day spending on essential public services, including health, education, security, etc. wages for public sector
Define the term capital expenditure
Capital expenditure: Spending on ‘once-off’ projects or on infrastructure that will
have long-term benefits for the country.
Explain the terms industrial relations
Industrial relations refers to the relationship that exists between employers and their employees in the workplace.
Define the term industrial disputes
It is when you and your boss don’t have a good relationship and can lead too staff turnover and overtime ban
Outline why current expenditure increases
Current expenditure may increase if the country/household decides decides to spend it on a big project but other areas will be affected. Eg raising the amount of money in the pension might mean nurses get paid less
Explain the difference between a financial,cultural and social enterprise
A financial enterprises goal is to make a profit eg. McDonald’s a benefit of it is that it creates jobs, a cultural enterprises goal is to promote arts,heritage,traditional sports,theatre and music. Eg. GAA. And a social enterprises main goal is to help the community and the people in it eg UNICEF
Define the term the national budget
The national budget is the government’s financial plan for the year ahead. It shows expected revenue and planned expenditure.
Define the term opportunity cost
The opportunity cost is the item we must go without when we have to make a choice.
Define the term surplus
A surplus occurs when planned income is greater than planned expenditure.
Define the term deficit
A deficit occurs when planned expenditure is greater than planned income.
Define the term inflation
Inflation is a sustained increase in the general level of prices of goods and services from one year to the next.
Name and explain 1 impacts of inflation on business
Workers may demand wage increases so that they can afford the same amount of goods and services as they did before inflation.
Name and example 1 impact of inflation on households
Inflation reduces the purchasing power of money. Higher prices means that consumers will not be able to buy as many goods and services, which will result in a lower standard of living.
How do we measure inflation
The official rate of inflation is measured by the Consumer Price Index (CPI).
List 3 other economic indicators
Employment levels, National income, Interest rates
Define the term a trade union
A trade union is an organisation that represents workers, protects their rights and negotiates with employers on pay and conditions of work.
Name and explain 2 rights of an employee
Receive at least the legal minimum wage - employees should always receive a fair day’s pay for a fair day’s work and they should Receive a written contract of employment
Name and explain 2 rights of an employer
To hire suitable staff for their business and To dismiss dishonest or unsuitable staff.
Name and explain 2 responsibilities of an employee
Carry out their duties as stated in their contract of employment and wear the right protective clothing and equipment
Name and explain 2 responsibilities of an employer
Give employees a written contract of employment and pay agreed wages. They must pay at least the minimum wage to their employees and give equal pay to men and women.
Define the term price
The price is the amount of money a seller charges a customer for a product or service
Define the term product
It’s a good or service bought to satisfy consumers needs or wants bought by a business
What is product design
It is the first stage in making a product. Well designed products will attract more people
Define the term product life cycle
The product life cycle is the different stages that a product goes through from the time it is launched until it is taken off the market. It is usually illustrated on a five-stage diagram that shows the changes in product sales over time.
What is a brand name
A brand is a name, symbol, design or other feature that makes a product easy to recognise and distinguishes it from competing products.
Define the term unique selling point
A business will try to create a unique selling point (USP) for its product or service. This is what makes the product different from its competitors. For example, Volvo’s USP is safety, while Toyota’s is reliability.
Define the term promotion
Promotion means making customers aware of the product or brand in order to increase sales and create brand loyalty.
Define the term sales promotion
Sales promotions are incentives offered to customers to get them to buy products.eg. Buy 1 get 1 free
Define the term advertising
Advertising involves communicating with the public to let them know about a product and get them interested in buying it.ed. TV advertising
Define the term public relations
The role of public relations is to help create a positive image of the business.eg. Sponsoring a team
Define the term place
Place refers to where customers will buy the product and the channel of distribution used to get the product to this location.
Define the term channels of distribution
Channels of distribution refers to the way in which the product gets from the manufacturer to the consumer.
Define the term debit servicing
It is when the government have to try/pay back all there debit owed.eg having to pay back EU loans
Define the term flexitime
Flexitime means that an employee can start and finish work at a time that suits them each day as long as they do the hours stated in their contract.
Define the term time rate
Wage calculation based on the number of hours worked. Employees must ‘clock in’ and ‘clock out’ of work so that their employer knows how manyhours they have worked.
Define the term overtime payments
When an employee works longer than the standard working week, they may receive a higher rate of payment for those extra hours.
Define the term price rate
Calculation based on the number of items completed.
What is commission
Some workers, especially sales staff, receive a payment based on the value of the goods or services they have sold.
Define the term bonus payment
Some employers reward their staff with extra payments for meeting performance targets or deadlines.
Evaluate the benefits and costs of a government economic policy and assess who enjoys the benefits and who bears the costs
Government economic policy refers to all the ways in which the government tries to have an impact on the economy. Every policy decision will involve both a financial cost and an opportunity cost.
Taxpayers usually bear the costs of government policy, either through increased taxation or cutbacks in public services.
Type of loan I would take out for a house
Mortgage
Then the type of loan I would take out for a car
Medium term loan
Name the type of loan, I would take out for groceries
Bank overdraft
Tell me about it motor insurance
Motor insurance is compulsory in Ireland. This means that it is required by law and it is a criminal offence to drive without motor insurance.
What is third party car insurance
Injury to another person or damage to another person’s car or property caused by the insured driver. It does not cover the policy holder or their vehicle.
What is third party fire and theft car insurance
Third party, fire and theft
As per third party, plus compensation for the insured person if their vehicle catches fire or is stolen.
What is comprehension car insurance
This benefits all parties and vehicles that suffer loss or injury in an incident, including the insured person and their vehicle.
