Business activity 3

Question 1

Surplus

Answer 1

Amount of something that is more than what is needed

Question 2

Exports

Answer 2

Goods and services sold overseas

Question 3

Imports

Answer 3

Goods and services bought from overseas

Question 4

Visible trade

Answer 4

Trade in physical goods

Question 5

Invisible trade

Answer 5

Trade in services

Question 6

Balance in trade

Answer 6

Difference between visible exports and visible imports

Question 7

Transactions

Answer 7

Business deals or actions such as buying or selling something

Question 8

Exchange rate

Answer 8

Value of one currency in terms of another

Question 9

Commission

Answer 9

Extra amount of money that is paid to a person or organization according to the value of the goods they have sold or the services they have provided

Question 10

Fiscal policy

Answer 10

Using changes in taxation and government expenditure to manage the economy

Question 11

Lay off

Answer 11

Make employees redundant

Question 12

Social security payments

Answer 12

Money taken by the British government from people wages to pay for the system of payments to the people who are unemployed or ill

Question 13

Anti competitive practice

Answer 13

Attempts by firms to prevent or restrict competition

Question 14

Barriers to entry

Answer 14

Restrictions that mean it is difficult for new firms to enter the market

Question 15

Merger

Answer 15

Two or more businesses joining together to form one new firm

Question 16

Protectionism.

Answer 16

Use of trade barriers to protect domestic producers

Question 17

Infant industries

Answer 17

New industries that are yet to be established

Question 18

Dumping

Answer 18

Where a business sells goods in another country often below costs

Question 19

Trade barriers

Answer 19

Measures designed to restrict trade

Question 20

Quota

Answer 20

Physical limit on the quantity on the quantity of imports allowed in a country

Question 21

Subsidy

Answer 21

Financial support given to a domestic producer to help compete with overseas firms

Question 22

Interest

Answer 22

Price of borrowed money

Question 23

Monetary policy

Answer 23

Using changes in interest rates and the money supply to manage the economy

Question 24

Budget

Answer 24

And official statement that a government makes about how much it intends to spend and what the rates of taxes will be for the next year or six months

Question 25

Tax allowances

Answer 25

Part of income that is not taxed

Question 26

Budgetary methods

Answer 26

Actions taken by the government to influence business and the economy

Question 27

Urbanization

Answer 27

Process of constructing more and more building in rural land

Question 28

Capital intensive

Answer 28

Use of relatively more machinery than labor in production

Question 29

Sustainable development

Answer 29

Idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life in future generations

Question 30

Capital employed

Answer 30

Amount of money invested in a business

Question 31

Overtrading

Answer 31

Taking on more work than a business can afford to fund effectively

Question 32

Inventory

Answer 32

Stock of goods

Question 33

Fixed assets

Answer 33

Resources that are used repeatedly for a period of time by a business such as property

Question 34

Downturn

Answer 34

Period or process in which business activity, production etc, is reduced and conditions become worse

Question 35

Undercapitalized

Answer 35

Starting a business with insufficient capital

Question 36

Outcompeted

Answer 36

Preform more effectively in a particular field