Business Studies Unit 1.5

Commodities- Raw Materials such as coal, oil, cooper, iron ore, wheat and soya.

Commodity markerts- Where buyers and sellers meet to exchange commodities- often these are international, organised markets, for example the London Metal Exchange and the New York Mercantile Exchange.

Demand- The amount consumers are willing and able buy at any given price.

Supply- The amount aellers are willimg to offer for sale at any given price.

Shortage- When the demand for a good or service is greater than the supply. When a shortage exists, prices will tend to rise

Surplus- When the demand for a good or service is less than the avilable supply. When a surplus exists, prices will tend to fall.

Goods Markets- The market for everyday products such as clothes, food, petrol, going to the cinema, a DVD etc

Interest rate- The percentage reward or payment over a period of time that is given to savers or paid by borrowers on savings or loans.

Bank of England- The central bank for the UK. Its role is to monitor the banking system and to be the banker for the banks. It is responsible for setting interest rates in the UK

Variable interest rates- Interest rates that can change over the lifetime of a loan depending on what is happening to other interest rates and the economy.

Fixed interest rates- Interest rates that stay the same over an agreed period of a loan

Economic activity- The amont of buying and selling that takes place in a period of time.

The economy- The ecomomic activity acrried out by people and businesses in a country

Economic growth- Rises in the rate of economic acitity in an economy. It is measured by calculating the value sales inan economy over a period of time

Business cycle- Fluctuations in the level of economic activity over a period of time. Most economies experience times when economic activity is slowing

Recession- A sitution when the level of economic growth is nagative for two successive quarters

Stakeholder- An individual or a group which has an inerest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful