3.2.3 Flashcards

1
Q

unemployment

A

a situation where someone who is able to work is not able to get a job but would like to be in full time employment

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

what happens when employment levels rise?

A

consumers have more income to spend and this leads to higher sales

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

what does it mean if a product or service is income elastic?

A

if the demand for it increases as people’s income changes

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

what is an example of an income elastic product or service?

A

luxury holidays

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

what does it mean if a product or service is income inelastic?

A

if the demand for it doesn’t change very much as people’s income changes

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

what is an example of an income inelastic product or service?

A

loaf of bread

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