Business IGCSE 2018 Flashcards
Inflation
This is when there is an increase in the average price of levels of goods and services
Unemployment
This is when someone wants to work but is unable to find a job
Economic growth
This is when a countries GDP increases (more goods and services are sold compared to the previous year)
Payments
This records the difference between a countries exports and imports
Real income
This is the value of income. It falls when prices rise faster than money income.
GDP - gross domestic product
This is the total value of goods and services in a country in one year.
Recession
This is a period of time in which the GDP is falling
Exports
This is when goods or services are sold from one country to another.
Imports
These are the goods and services brought in from another country.
Exchange rate
This is the price of one currency in terms of another.
Exchange rate depreciation
This is the fall of value of the currency when compared with other currencies.
Exchange rate appreciation
This is the rise of the value of the currency when compared to another currency
Currency depreciation
This happens when the value of the currency falls, meaning it buys less than it did before.
Currency appreciation
This is when the value of the currency rises, it buys more than it did before.
Fiscal policy
This is the changes of tax-rates or public-sector spending made by the government.
Direct taxes
This is paid directly from an income
Indirect taxes
These are added to the price of the good or service and the tax payers pay that tax when they purchase the good. Eg. VAT.
Disposable income
This is the level of income a taxpayer has after paying the income tax
Import tariff
This is the tax on an imported product
Import quota
This is the restriction to the number of goods that can be imported.
Monetary policy
This is the change in interest rates by the government or central banks.
Social responsibility
This is when a business decision benefits the stakeholders rather than the shareholders.
Consumer boycott
This is when customers decide not to buy products from a business that does not act in a socially responsible way
Ethical decision
These are the decisions taken based on what is seen to be right