Business and the social environment

Question 1

What can external economic factors be divided into?

Answer 1

Macro

Micro

Question 2

What are micro economic factors?

Answer 2

Economic factors operatin within the oraganisations market

Question 3

What are Macro economic factors?

Answer 3

Economic factors operating in the whole econcomy

Question 4

The state of the economy can be meausred in many different ways, often called what?

Answer 4

Macro economic indicators

Question 5

What are some example of Macro economic indicators?

Answer 5

GDP
Interest Rates
Unemployment and exchange rates
Rate of inflation Inflation 
Economic growth

Question 6

Whats GDP?

Answer 6

Gross Domestic Product

Represents the value of a countrys national income in one year

Increase almost means he populations standard of living has increased - and this means more disposible income

When GDP rates are recorded over time the inevitable ups and downs of the economy show a pattern called the business cycle

Question 7

What are the four stages in the business cycle?

Answer 7

Boom

Downturn

Slump

Upturn/Recovery

Question 8

What can economic growth be defined as?

Answer 8

An increase in a countries GDP after adjusting for inflation

Question 9

What is inflation?

Answer 9

It measures average price rises

Retail prive index (RPI) Consumer price index (CPI) both measure average price changes over a range of 600 goods and services per month

Price rising from from greater demand - Demand pull inflation

Costs increasing so prices must aswell - cost pull inflation