Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Exam Revision > Business Economics > Flashcards

Business Economics Flashcards

1
Q

What is economics?

A

The branch of knowledge surrounding the production, consumption and transfer of wealth; how people interact within a market to achieve goals

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

What is relative scarcity?

A

When the wants and needs of society outweigh the resources/money

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

What is opportunity cost?

A

The benefit forgone or sacrifices made in allocating resources or choosing one option over another

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

What is net benefits?

A

The benefit of something minus the cost

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

What is the production possibility curve?

A

An abstract tool used by economists to highlight a number of concepts including opportunity cost

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

What is a free market?

A

Capitalist, profit motive, demand and supply sets price (vic market)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a planned market?

A

Communist, equality, government jobs, gov sets price and determines production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is inflation?

A

A rise in prices overall

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the law of demand?

A

As the price of a product increases, demand decreases, vice versa

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Factors that will effect demand?

A

Price, fashions and trends, disposable income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the law of supply?

A

As the price increases, supply will increase (profit motive)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Factors impacting supply?

A

Price of raw materials, wage rates, interest rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the GDP?

A

Volume of goods and services produced in a period, measured at market prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is economic growth?

A

Real growth in the volume/value of goods and services produced by a country over a period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the AD Equation?

A 
AD= Agregate/ Total Demand
C= Consumption
I= Investment
G= Gov Spending
G2= Gov Investment
(x-m)= exports minus imports
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the labour force?

A

Employed + Unemployed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is employed?

A

Working for one hour or more per week

18
Q

What is unemployed?

A

Not currently working but actively seeking

19
Q

What is underemployment?

A

The growth in part time work meaning workers seek an increase in working hours

20
Q

How is the rate of unemployment calculated?

A

Number of Unemployed/Labour Force

21
Q

What is cyclical unemployment?

A

Decrease in demand results in less need for production leading to job cuts

22
Q

What is structural unemployment

A

Advances in technology causes job cuts

23
Q

What is seasonal unemployment?

A

Caused by the time of the year and related to seasonal factors

24
Q

What is frictional unemployment?

A

Short term unemployment, faced by usually well qualified people, contract work

25
Q

What is capital?

A

Goods created with the intention of making more goods in the future, increasing efficiency

26
Q

What is labour?

A

The mental and physical efforts by humans in the production process

27
Q

What is land?

A

All resources that occur in nature

28
Q

What is entrepreneurship?

A

Skills of individuals who combine resources to produce goods and services. They are all business owners who take financial risks

29
Q

What is a commodity?

A

A raw material or primary agricultural products that can be bought or sold (oil)

30
Q

What is a tariff?

A

A tax on imports and exports to help local producers

31
Q

What is consumption?

A

The amount of goods and services used by households

32
Q

What are market forces?

A

The economic factors affecting the price of, demand and availability of a commodity

33
Q

What is hardcore unemployment

A

Unemployed for 12 months or longer

34
Q

What government policies can slow the rate of inflation?

A

Decrease the supply of money
Decrease government spending
Increase taxes
Increase interest rates

35
Q

How may the government increase inflation?

A

Print more money

36
Q

What is hidden unemployed

A

Those who are no longer actively seeking work

37
Q

What is productivity?

A

The efficient use of productive resources

38
Q

How does unemployment effect the government?

A

Less people earning enough to pay income tax leading to less government spending

39
Q

How does unemployment effect businesses?

A

Less people in the work force, leading to a decrease in production and profit

40
Q

How does unemployment effect society

A

Less people working means people will become desperate, increased crime rates and decrease in personal wellbeing

41
Q

What are some limitations of the GDP?

A
  • doesn’t account for volunteer work
  • doesn’t account for leisure time
  • doesn’t share benefits of growth equally
  • not sustainable over the long run –> Inflation: result of scarce resources
42
Q

What are government policies to stimulate growth?

A
  • subsidies: pay for a portion, entices spending

- decrease income tax: more disposable income to spend on good and services

Exam Revision (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions