Ems Exam Flashcards
GDP
Gross domestic product 
Economic growth
Rate which the economy is increasing or possibly decreasing over a period of time 
Positive economic growth 
Producing more goods and services this year are then last year 
Negative economic growth 
When the amount of goods and services decreases 
Gross domestic product
Is the value of all the final goods services produced in a country in a year
GDP is measured as a percentage of the previous year
What does higher economic growth mean
When the country gets wealthier ,the population is still increasing therefore their economies need to grow to provide jobs for additional population
Recession 
Is it difficult time when the economic activity decreases and the economic growth is low or negative 
Economic shock
Is a unpredictable event that can cause widespread disruption and can cause a recession like a natural disaster 
What is a profit
A profit is the reason why people start a business it is the money left over after all the expenses have been paid we use it to see if the business is successful .
What is a loss
When the expenses of running the business are more than the income earned by the business 
What is the salary 
The salary is a fixed amount paid transferred to a worker for his or her performance at the end of each month 
What is the wage 
Is an hourly daily or weekly payment given to worker for the amount of work finished in an hour day a week the amount depends on the number of hours the work has worked .
What is the difference between salary and wage
A salary is a fixed amount agreed between the employee and employer. wage is not fixed it varies depending on the performance of the worker 
What is a formal business
A formal business has fixed hours fixed salaries pays income tax and has a permit called premises
What is an informal business
Has irregular longer working hours normally lower daily wages paid in cash and are not taxed
