Economic Factors

Question 1

What is economic recession?

Answer 1

A recession is…
When the economy declines significantly for at least six months

Question 2

Name three of the five factors that lead to a recession

Answer 2

A recession is when there’s a drop in the following five economic indicators:
1. Real GDP
2. Income
3. Employment
4. Manufacturing
5. Retail sales

Question 3

What is economic boom?

Answer 3

Economic boom is…
A period of rapid economic growth

Question 4

What is disposable income?

Answer 4

Disposable income is…
Amount of money a person has left over after tax and living expenses are paid

Question 5

What is employment levels?

Answer 5

Employment levels is…
Number of people who have a job
or
A measure of the extent to which available labour resources (people available to work) are being used

Question 6

What is exchange rates?

Answer 6

Exchange rates are…
The amount of one currency you can exchange for another.
For example, if you travelled to a country in the EU on 1st July 2019, you would only receive 1.11 euros for £1

Question 7

Describe how fuel costs can effect travel

Answer 7

Fuel costs are a significant cost in this industry and as wholesale prices fluctuate so prices of holidays can rise or fall.
The Russia/Ukraine conflict and oil insecurity has caused an increase in the cost of flights to ensure that all flights ae profitable