Business Studies

Goods:

Tangible products that can be touched and bought..

Services:

Things that other people or businesses do for you..

Effective Demand:

Demand for a product that is backed up by an ability and willingness to pay for it..

Opportunity cost:

The cost of one item in terms of the next best alternative that must be foregone..

Exchange:

The ability to exchange one type of goods or services for another, normally using money as a means of exchange..

Specialisation:

The tendency of an individual business, region or country to produce certain goods or services..

Summary

Objectives:

Goals or targets set by a business or its stakeholders which they seek to achieve through the activities of the business..

Purpose:

The purpose of a busines is to provide goods or services;this enables the business to fulfill the objectives of its stakeholders..

Stakeholders:

People who have an interest in the performance and activities of a business: Shareholders, employees, managers, trade unions, creditors, suppliers, customers and the goverment.

Planned economy:

An economy that is controlled by the state

Market economy:

An economy that operates according to the forces of demand and supply, without interference by the state.

Mixed economy

An economy that is partly left to the forces of demand and supply, and partly controlled by the state.

Unemployment

The level of people without jobs and willing and able to accept suitable employment

Inflation

A general rise in the level of prices

Economic growth

An increase in value of goods and sevices produced by a country and sold at home and abroad

Fiscal policies:

Government economic policies based on how the government raises