Cycle Test 5 October Flashcards
What is economic growth
Rate at which an economy of a country is increasing or possibly decreasing over a period of time
What happens when a economy produces more goods and services than last year?
The country is experiencing a positive economic growth
What happens when a economy produces less goods and services than last year
The country is experiencing negative economic growth
What does GDP stand for
Gross (total) Domestic (country) Product
What is a GDP used for
Measure the economic growth of a country - GDP is the total value of all final goods and services produced in a country in a year
What does a higher GDP mean for a country? What happens when the population grows
They are getting wealthier - need to provide more jobs for the population
What is a recession
Difficult time when economic activity decreases + economic growth = low/negative.
What is an economic shock
Unpredictable event that causes widespread disruption = recession (natural disaster/pandemic)
What is a salary
Fixed amount for worker on performance, productivity - end of every month
What is wage
Hourly, daily or weekly payment - amount of work finished in hours, day or week — number of hours - some work overtime for extra money
What is the main difference between salary + wage
Salary = fixed
Wage = not fixed - performance of worker
What is an formal business
- regular working hour
- regular wages/salary
-registered with the government + follows laws - business license
-obtain loans from bank - larger number of consumers
- permanent, recognised address = premises
- official business records
- employees
- owners + worker = trained and skilled
= a proper business
What is an informal business
- irregular working hours (longer)
Lower, daily wages = cash
Not taxed
Not registered = monitored by government
No business license
Cant obtain bank loans
Limited consumers
Easy to start - no starting costs
Usually small (size)
No recognised/fixed business site
No official business records
Usually don’t employ / employ a few
Owners + workers = rely on own skill + talent
How can a natural disaster affect a business
Business can loose their premises + suffer severe property damage = damages suffered economically = millions of rands + long lasting
How can health epidemics and pandemics affect businesses
Cause hardship and financial loss for individuals + businesses - people away from work = productivity suffers = business experience loss of scales opportunities and income
What is risk - taking in an entrepreneur
Not rely on others to tell them what to do + take risks
What is perseverance in an entrepreneur
Nothing stops them from achieving goals, commit for time, effort and hard work
What is discipline in an entrepreneur
Focus on business - don’t get distracted - work methodically don’t postpone anything = do immediately
What is attention to detail in an entrepreneur
Pay attention to small things like customer care + expenses - don’t focus on bigger picture
What is passion in an entrepreneur
Enjoys doing what they do - don’t ind spending extra to to insure of a successful business
What is decision - making in an entrepreneur
Make quick + best decisions for their business
What is self - confidence in an entrepreneur
Believes in themselves + own ability - courage to go be successful
What is competitive in an entrepreneur
Try compete + thrive on competition + not afraid = make them better + improve
What does the S in SWOT mean
Strengths
What does the W in SWOT mean
Weaknesses
What does the O in SWOT stand for
Opportunities
What does the T in SWOT stand for
Threats
The history of banks - what happend in the year 1300BC?
Greece and Rome became the leaders in money lending
What is the story behind the word ‘banco’
Traders set up shops/benches called ‘banco’ which were used to exchange money, make loands and weighed coins - later led to ‘bank’
What was the coin in Florence called
Florin
What year and what country was the first national bank in
Sweden was the first national bank in 1668
What is the worlds oldest surviving bank
Sweden national bank
What did the bank of England do
Printed the first cheques
How many signatures did the first bank notes have? How did people feel about paper money
8 signatures, it took awhile for people to adapt and the didn’t accept its value
Where was the first credit card issued
A bank in America
What year and what country introduced first internet banking service
A bank in America in 1981
What are primary needs
Essential needs - necessary for survival = food, water, shelter, clothing and sanitation
What are secondary needs
Wants - our desire and become important when primary needs are satisfied = non-essential needs = makes lives easier, more enjoyable - entertainment/leisure - wants are unlimited
