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Economics > Unit 11 > Flashcards

Unit 11 Flashcards

0
Q

What is the difference between a need and a want?

A

A need is essential; a want is not.

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1
Q

Name the stages of the personal life cycle.

A

Childhood, adolescence, young adult, middle adult, old adult.

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2
Q

What are some milestones of the personal life cycle?q

A

Leaving school
Gaining employment
Promotion
Unemployment

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3
Q

How does the government affect the personal life cycle?

A

Adolescents receive Education Maintenance Allowance.
Workers receive tax credits.
Job centres provide services to help people find employment.
Pensions are paid to retirees.

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4
Q

What is the basic economic problem?

A

resources are limited but needs and wants are infinite.

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5
Q

What is an opportunity cost?

A

Something given up when making a choice

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6
Q

What factors can affect spending?

A

Income
Advertising
Prices of substitutes
Fashion

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7
Q

What factors affect supply?

A

Cost of raw materials
Wage rates
Worker productivity

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8
Q

What are the benefits and disadvantages of competition to the consumer?

A

Benefits include lower prices, greater choice, and better quality.
Disadvantages include possible lower quality and poor after sales service.

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9
Q

How can people save?

A

Locations include banks, online banks, national savings and post office card accounts.
Account types include ISAs, fixed-term investments, unit trusts, and government securities.

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10
Q

What is AER?

A

Annual equivalent rate. It allows people to compare savings accounts and their interests.

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11
Q

What are some high risk saving methods?

A

Shares, unit trusts and gilts.

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12
Q

What are some methods of borrowing?

A

Mortgage, credit card, store card, personal loan, hire purchase, overdraft.

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13
Q

What is APR?

A

The interest rate quoted on loans.

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14
Q

What is a budget?

A

A financial plan of saving and spending.

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15
Q

Why do people work? Why don’t people work?

A

People work for pay or job satisfaction.

People don’t work for education, childcare, retirement.

16
Q

What are the benefits and drawbacks of specialisation?

A

Benefits - workers become more skilled. More output. Lower unit costs.

Drawbacks - interdependence. Low morale. Lower flexibility.

17
Q

How has ICT changed working practices.

A

The internet increases online retail. Email increases communication. Home working makes it easier to work from home.

18
Q

In what ways are people paid?

A

Salary, wage, commission, overtime, shift work, BACS, fringe benefits.

19
Q

What is the difference between gross pay and net pay?

A

Gross pay is the total amount paid. Net lay is after tax deductions etc.

20
Q

Identify some potential deductions from gross pay.

A

Income tax, national insurance, pension contributions.

21
Q

What affects the supply of labour?

A

Monetary factors, gender, ethnicity, taxation and benefits.

22
Q

What can affect the demand for labour?

A

Government influence, wage determination.

23
Q

What can cause differences in wages?

A

Training, gender, age, trade unions, government influence

24
Q

What are the effects of unemployment on the individual?

A

Loss of skills, health, family breakdown and lost wages.

25
Q

How does the government help the unemployed?

A

Jobseeker’s Allowance, working tax credits, new deal, education, apprenticeships.

26
Q

What is balance of payments?

A

The difference between the total value of exports and total value of imports.

27
Q

What are the advantages of international trade?

A

Income increases, growth increases, more choice, lower prices, more competition, make up for lack of raw materials.

28
Q

What are the disadvantages of trade to the UK economy?

A

Competition, economic dependency, unstable commodity prices, power of MNCs, pollution.

29
Q

How can exchange rates affect exports?

A

If the pound weakens against the euro, then counterintuitively exports will improve, as our goods and services will be cheaper.

30
Q

How do exchange rates affect imports?

A

If the pound weakens against the euro, exports will cost more.

31
Q

What other factors affect imports and exports?

A

Style, quality, reliability

32
Q

How do individuals affect businesses?

A

Boycotts and buying power.

33
Q

How do firms operating overseas affect the economy?

A

Advantages - lower operating costs, increased competitiveness, lower transport costs

Disadvantages - jobs lost elsewhere, unfamiliar cultures, transport to markets, exchange rates.

34
Q

What are the effects of globalisation on the UK market?

A

Increased jobs, new migrants with labour skills, more market opportunities

Low skilled jobs lost, lower wages, unemployment

Economics (4 decks)

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