Revision Flashcards for Economics

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  • Created by: SB1
  • Created on: 02-12-15 14:34
What is the order of the personal life cycle?
Childhood: (0-12) Adolescence: (13-19) Young Adult: (20-35) Middle Adult: (35-64) Late Adult: (65+)
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What is income?
Total money recieved from a person's wages, interest and dividends.
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What is borrowing?
Getting money from a lender, to be repaid in the future.
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What is savings?
Putting money aside for later use.
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What is the difference between needs and wants?
Needs are essential to our lives but wants are things we could survive without.
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How is the government paying for the benefits system?
Through taxation.
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Name three types of benefits.
Out of: Education maintenance allowance (£10-£30) per week Tax credits which reduce the amount of income tax they have to pay. Jobseekers allowance. Pension.
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What is opportunity cost?
It is something given up when we make a choice,the next best option.
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What is demand?
A quantity of a good or servicethat consumers willing and able to purchases of a particular price.
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What is the law of demand?
When a price rises, demand for the product falls.
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What are compliments?
Two products, which are seperate and different but are often used in conjunction with each other. E.G. shampoo and conditioner, petrol and cars, strawberries and cream.
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What are substitutes?
Two goods that could be used for the same purpose. E.G. Butter and margarine.
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What is market?
Markets exist when buyers and sellers come together.
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When do prices change?
When there is a change in the demand or supply.
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How do firms compete with each other?
Advertising and branding, Improving quality, changing the design of the product, Lowering the price by imroving production methods.
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Name 3 benefits of consumers of competition?
1) Lower prices 2) Greater variety 3) better quality
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What is a disadvantage of competition?
Quality is lowered as businesses try to cut costs. After sales service can suffer if too many resources are put into sales.
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What are interest rates?
An annual rate which is charged to borrowers or paid to savers.
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What are Annual Equivalent Rates?
A figure quoted in savings advetisment to help people compare one saving product with another.
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What is the difference between gross and net interests?
The difference between gross and net interest is that gross is before tax is deducted whereas net is after.
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Define a share?
A share is a certificate of ownership in a company.
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What is the stock market?
The place where stocks, shares and bonds are traded.
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What is a unit trust?
A pooled investment fund usually in shares-based investment.
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What are government securities?
Stocks, bonds and bills of exchange issued by a government to raise the funds.
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What does APR stand for?
The interest rate published on loans to compare their true costs.
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What is a loan?
Amount of money borrowed.
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What is the term of a loan?
The length of time over which the loan can be repaid.
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Define security in terms of a loan?
Some loans require security which can be taken by the loan company is repayments are met. E.G. House.
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What is financial planning?
A process for ensuring that financial goals are met.
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What is a budget?
A financial plan of future income and spending.
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What is Financial adviser?
A proffesional offering financial advice.
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Define Debt management?
Taking the help of an expert to solve a debt problem.
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What is a debt management plan?
A structured repayment plan.
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What is a social, moral and ethical dilemma?
A problem with no right or wrong answer.
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What is the ethical lending policy?
A statement that loans will only be made to businesses that act in a socially responsible manner.
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Other cards in this set

Card 2

Front

What is income?

Back

Total money recieved from a person's wages, interest and dividends.

Card 3

Front

What is borrowing?

Back

Preview of the front of card 3

Card 4

Front

What is savings?

Back

Preview of the front of card 4

Card 5

Front

What is the difference between needs and wants?

Back

Preview of the front of card 5
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