Savings And Investments Flashcards
1
Q
Why do people/ businesses invest
A
- to create wealth and income
- generate passive income
- to maybe buy shares in business
- have money to spend
- Earn interest on investment
2
Q
What is the difference between savings and investment s
A
- savings - not spending all of your money but putting some money aside on a regular basis
- investment- using the money that you saved to create wealth
3
Q
Why is important to invest in businesses
A
- lead to more trade
- impact positively on job creation
- positively on productivity
- result in economic growth
- increase in standard of living
4
Q
What is productivity
A
- to produce goods by businesses
Measures the amount of output for each unit of input
Refers to the amount of work that an employee can deliver in a specific time period
-leads to economic growth
5
Q
What is the difference between quality and quantity
A
- quality- how good is the product Excellence of goods
- quantity how many goods are there
Refers to amounts and numbers
6
Q
What are the 3 effects to increase productivity
A
- labour - train employees, paying fair wages, motivate employees
- natural resources- use resources efficiently- recycle
- time - use time efficiently Produce highest number of goods to in a shortest period of time
7
Q
What are the advantages of increase of productivity
A
- job creation
- economic growth
- enterprises become more competitive
- capable of obtaining greater market share
- growth and expansion
