A-level Business Studies Lesson 06 (3.1.3)

Question 1

Demographics

Answer 1

The characteristics of human populations and population groups; it includes analysis of a range of elements including migration trends, birth and death rates, trends in age, ethnicity and gender, levels of education, marital status and size of family.

Question 2

Economic factors

Answer 2

Includes factors such as inflation, exchange rates, interest rates, economic growth, and unemployment rates.

Question 3

Social factors

Answer 3

Demographic characteristics, cultural norms, and values that influence consumer behaviours and business operations.

Question 4

Inflation

Answer 4

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

Question 5

Interest rates

Answer 5

The cost of borrowing money and the reward for saving money

Question 6

Capital goods

Answer 6

Physical assets that a company uses in the production process to manufacture products and services that consumers will later use, e.g. buildings, machinery, tools, equipment, and vehicles.