Economics

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Savings Account
Which has a low risk,low/medium rewards, its short term and i quite easy to withdraw from.
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ISA Account
Which is a low risk and low/medium reward but is medium/long term and is easy to withdraw from.
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National Saving and Investment Account
Which consists of a long term and is a very low risk and low reward, this also has to have a written notice before you can withdraw from.
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Unit Trust
Has a high risk, high reward and is long term and obtaining your money may be hard and time consuming.
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what is economics?
Economics involves studying how the economic problem is solved. the economic problem refers to the fact that there are scarce resources but unlimited wants. so choices have to be made (opportunity cost).
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what are resources?
they are needed to produce goods/services and are often called the factors of production.
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Land?
only raw materials
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Labour?
workers
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CAPITAL?
Machinery
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enterprise?
entrepeneur
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what does the PLC show?
the people now days who will be experiencing leaving home, working, establishing their own families, retirement.and their needs and wants change too.
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changes in income?
this is known as a MILESTONE, which are important events in the plc which affect our finances.
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Opportunity Cost?
something given up when we make a choice.
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what is meant by Demand?
the quantity of a good/service that consumers are willing and able to purchase at a particular price.
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Q. What will happen to demand if prices increase?
As the price increases for a good, the quantity demanded will fall (visa/versa). E.G. consumers will probably start using more gas as the british gas has dropped by 10%.
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Q. what other factors affect demand?
income level, advertising and branding influence desire and loyalty, prices of substitutes, fashion.
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what is meant by supply?
the quantity of a good/service that businesses will offer for a sale.
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Why do people save?
Many may chose wisely to save for future expenses, such as University, instead of taking out a student loan which results in more debt. Or save for future emergencys. Or savee for a goal, such as a house/car.
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Where can you save?
High street bank/building society, internet only banks, National savings and investment, Post office card accounts.
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Savings account?
Low risk, low/med rewards, short term, easy to withdraw.
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Fixed term investment account?
savings cannot be withdrawn for an agreed length of time.
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Government securities?
bonds issued by the gov through national savings and investments.
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share based savings
these are savings products that spread risk by investing in a range of shares.
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ISA?
low risk, low/med rewards, but is long term and easy to withdraw.
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Unit trust/
high risk, high reward, long term, obtaining money takes time.
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Mortgage?
a loan to finance the purchase of a real-estate, it remains owned by the bank until fully paid off.
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Credit Card?
can be used several times to purchase products on credit. each month you recieve a bill of how much you need to repay(3.5%min) of outstanding balance.
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store card?
similar to credit cards when paying back. except once you have been issued with this card you may only purchase items in that store.
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Personal loan?
a loan given for a house hold/ personal item, e.g. tv/furniture.
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hire purchase?
when the company buys the item but you will only recieve it once you have paid your debt.
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A financial advisor?
can help you with your complicated plans.
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income?
total money recieved from a persons wage/salary, interest and dividends.
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benefits?
regular payments from a gov to support people in need.
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tax credit?
a state benefit paid to employees through a tax system whcich acts as a negeative tax.
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Taxes
a fee levied by a gov on a product/income/activity.
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Scarcity\?
resources are limited with out needs and wants.
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meaning of factors affecting supply
things that cause suppliers to offer more/less of a good/service at a price.
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Markets?
exsist when buyers and sellers come together.
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factors affecting demand?
things that cause consumers to buy more/less of a product at a given price.
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AER?
A figure quoted in savings advertisements to help compare ones savings products with another.
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APR?
The IR published on loans to compare true costs.
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Other cards in this set

Card 2

Front

Which is a low risk and low/medium reward but is medium/long term and is easy to withdraw from.

Back

ISA Account

Card 3

Front

Which consists of a long term and is a very low risk and low reward, this also has to have a written notice before you can withdraw from.

Back

Preview of the back of card 3

Card 4

Front

Has a high risk, high reward and is long term and obtaining your money may be hard and time consuming.

Back

Preview of the back of card 4

Card 5

Front

Economics involves studying how the economic problem is solved. the economic problem refers to the fact that there are scarce resources but unlimited wants. so choices have to be made (opportunity cost).

Back

Preview of the back of card 5
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