Role of an entrepreneur in the economy Flashcards
unit 1.2.1
1
Q
What are instigators of creative destruction ?
A
customers switching to new products and old products becoming obsolete
2
Q
What do quality improving innovations ensure ?
A
a market is dynamic and leads to economic growth
3
Q
What is a disruptor ?
A
a business that initiates change across a market
4
Q
What is added value ?
A
selling the output for more than the cost of the inputs
5
Q
What is gross domestic product (GDP) ?
A
the quarterly % figure to say how good the economy is doing
6
Q
What 3 ways is GDP calculated ?
A
- total expenditure (sales)
- total income
- total output
7
Q
What is rapid growth ?
A
4% increase
8
Q
What is a recession ?
A
2 quarters in a row in a negative
