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igcse economics > The individual as producer, consumer and borrower > Flashcards

The individual as producer, consumer and borrower Flashcards

1
Q

define money

A

any commodity which can be used as a medium of exchange that is accepted for the purchase of goods and services

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2
Q

characteristics of money

A 
durability 
acceptability 
divisibility
scarcity
uniformity
portability
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3
Q

functions of money

A

measure of value
store of value
medium of exchange
standard of deferred payment

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4
Q

what is bartering and 3 problems with bartering

A

bartering is swapping items in exchange for other times through negotiation
double coincidence of wants
portability
divisibility

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5
Q

the central bank is ?

A

the monetary authority that oversees and manages the nations money supply and banking system

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6
Q

list 4 functions of the central bank

A

sole right to issue legal tender
governments bank
lender of last resorts
bankers bank

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7
Q

what is a stock exchange

A

it is an institutuional marketplace for trading shares of plcs. it provides a platform to buy and sell shares

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8
Q

5 functions of stock exchange

A 
safety of transaction
grow
price mechanism
bonds
share capital
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9
Q

the primary functions of commercial bank

A

accepting deposits
credit creation
advances

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10
Q

8 non wage factors

A 
career prospects
challenge
danger
training
experience
recognition
satisfaction
education
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11
Q

demand for labour is a

A

derived demand

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12
Q

advantages of national minimum wage

A

more people seek employment

less exploitation

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13
Q

disadvantages of national minimum wage

A

in order to maintain pay differences senior employees may ask for pay rise
unemployment due to added cost

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14
Q

how can government intervene in labour markets

A

trade union legislation

employment rights

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15
Q

geographical mobility refers to the ?

A

willingness and ability of a person to relocate from one part of the country to another for work

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16
Q

occupational mobility refers to the?

A

ease with which a person is able to change between jobs dependent on the cost and length of training required for the job

17
Q

why do skilled workers earn more than unskilled workers

A

high demand and low supply ped is inelastic

18
Q

why do men generally earn more than women

A

women are involved in more part time
women take career break to have children
women seek for more flexible jobs which may be low paying
women may face discrimination at work

19
Q

what is a trade union?

A

a group or an organisation that exists to protect the rights of the workers

20
Q

what are the four kinds of trade unions

A

craft union
industrial union
general union
white collar union

21
Q

what is collective bargaining?

A

when a trade union representative negotiates on behalf of the union’s members for better working conditions.

22
Q

what are the basis of wage claims?

A

inflation
workers in comparable occupations have higher wages
increased profit
increased productivity

23
Q

list 3 positive impacts of trade unions

A

help solve disputes
offer legal support
raise living standards

24
Q

what are the negative impacts of trade unions

A

often portrayed as antagonists and can cause severe disruption in the economy
employers may believe that trade unions may force an increase in costs

25
Q

possible reasons for increased trade union membership

A

growth in manufacturing jobs
increasing number of workers facing poor working conditions
increasing wealth inequality

26
Q

possible reasons for decreased trade union membership

A

changing government legislation
decline in manufacturing jobs
increase in part time employment
increase in self employment

27
Q

what is a predominant factor for consumer spending?

A

income level

28
Q

what are the returns of the fops

A

land-rent
labour-wages
capital-interest
enterprise-profit

29
Q

what is disposable income

A

refers to the income earned post taxation

30
Q

expenditure pattern for low income earners

A

spending on most necessities
saving tends to be low
borrowing to fund capital items

31
Q

expenditure pattern for middle income earners

A

spend on necessities+luxuries
able to save
borrowing to fund capital items

32
Q

expenditure pattern for high income earners

A

spend on luxuries
high saving
borrowing occurs but less

33
Q

how do you measure wealth

A

assets-liabilities

34
Q

what is conspicuous consumption

A

when individuals purchase goods or services that make them feel of higher status

35
Q

determinants of consumer spending

A 
inflation
age
confidence levels
interest rates
size of household
36
Q

determinants of saving

A

interest rates
age
confidence levels
attitude towards saving

37
Q

factors that may affect borrowing

A

wealth
credit cards
store cards
availability of funds

igcse economics (7 decks)

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