Economic factors

Question 1

What are economic factors ?

Answer 1

Consumer activity and economic activity

Question 2

What is GDP

Answer 2

Gross domestic product = total value of all goods and services produced in a country in a particular time period

Question 3

What are interest rates ?

Answer 3

Reward for saving and the cost of borrowing expressed as a % of the money saved or borrowed

Question 4

Who decides interest rates ?

Answer 4

Banks and other financial intuitions

Question 5

What is inflation ?

Answer 5

Sustained increase in the cost of living leading to a fall in the buying power of money

Question 6

What are 4 causes of inflation ?

Answer 6

1. Credit boom due to low interest rates
2. Increases in energy and fuel costs
3. Higher wage costs
4. Higher indirect taxes

Question 7

What are exchange rates ?

Answer 7

The price of one currency in terms of another

Question 8

What is SPICED ?

Answer 8

Strong
Pound
Imports
Cheaper
Exports
Dearer

Question 9

What is WPIDEC ?

Answer 9

Weak
Pound
Imports
Dearer
Exports
Cheaper

Question 10

What is unemployment ?

Answer 10

The number of people of working age and ability who are unable to find a job, even though they are actively searching for one

Question 11

What are 4 impacts of economic factors ?

Answer 11

1. Business cycle
2. High inflation
3. Exchange rates
4. Unemployment