The individual as producer, consumer and borrower Flashcards
define money
any commodity which can be used as a medium of exchange that is accepted for the purchase of goods and services
characteristics of money
durability acceptability divisibility scarcity uniformity portability
functions of money
measure of value
store of value
medium of exchange
standard of deferred payment
what is bartering and 3 problems with bartering
bartering is swapping items in exchange for other times through negotiation
double coincidence of wants
portability
divisibility
the central bank is ?
the monetary authority that oversees and manages the nations money supply and banking system
list 4 functions of the central bank
sole right to issue legal tender
governments bank
lender of last resorts
bankers bank
what is a stock exchange
it is an institutuional marketplace for trading shares of plcs. it provides a platform to buy and sell shares
5 functions of stock exchange
safety of transaction grow price mechanism bonds share capital
the primary functions of commercial bank
accepting deposits
credit creation
advances
8 non wage factors
career prospects challenge danger training experience recognition satisfaction education
demand for labour is a
derived demand
advantages of national minimum wage
more people seek employment
less exploitation
disadvantages of national minimum wage
in order to maintain pay differences senior employees may ask for pay rise
unemployment due to added cost
how can government intervene in labour markets
trade union legislation
employment rights
geographical mobility refers to the ?
willingness and ability of a person to relocate from one part of the country to another for work
occupational mobility refers to the?
ease with which a person is able to change between jobs dependent on the cost and length of training required for the job
why do skilled workers earn more than unskilled workers
high demand and low supply ped is inelastic
why do men generally earn more than women
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
what is a trade union?
a group or an organisation that exists to protect the rights of the workers
what are the four kinds of trade unions
craft union
industrial union
general union
white collar union
what is collective bargaining?
when a trade union representative negotiates on behalf of the union’s members for better working conditions.
what are the basis of wage claims?
inflation
workers in comparable occupations have higher wages
increased profit
increased productivity
list 3 positive impacts of trade unions
help solve disputes
offer legal support
raise living standards
what are the negative impacts of trade unions
often portrayed as antagonists and can cause severe disruption in the economy
employers may believe that trade unions may force an increase in costs
possible reasons for increased trade union membership
growth in manufacturing jobs
increasing number of workers facing poor working conditions
increasing wealth inequality
possible reasons for decreased trade union membership
changing government legislation
decline in manufacturing jobs
increase in part time employment
increase in self employment
what is a predominant factor for consumer spending?
income level
what are the returns of the fops
land-rent
labour-wages
capital-interest
enterprise-profit
what is disposable income
refers to the income earned post taxation
expenditure pattern for low income earners
spending on most necessities
saving tends to be low
borrowing to fund capital items
expenditure pattern for middle income earners
spend on necessities+luxuries
able to save
borrowing to fund capital items
expenditure pattern for high income earners
spend on luxuries
high saving
borrowing occurs but less
how do you measure wealth
assets-liabilities
what is conspicuous consumption
when individuals purchase goods or services that make them feel of higher status
determinants of consumer spending
inflation age confidence levels interest rates size of household
determinants of saving
interest rates
age
confidence levels
attitude towards saving
factors that may affect borrowing
wealth
credit cards
store cards
availability of funds
