Theme 1: Wider Economic Environment

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  • Created by: ACharles
  • Created on: 02-10-19 15:06
What is division of labour ? (pg 10)
individuals specialising in one particular type of activity in the workplace. - will allow each employee to do a task well and fast.
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What is an advantage of division of labour ? (pg 10)
The workplace becomes more productive and profiitable.
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What is a disadvantage of division of labour ? (pg 10)
Repetition of tasks causes workers to become bored leading to lack of motivation.
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What is specialisation ? (pg 10)
The way in which people, organisations and economies concentrate on specific economic activities.
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What is an advantage of specialisation ? (pg 10)
Individuals will gain an more in-depth knowledge and greater skills improving quality and quantity of service, resulting in more profit for the company.
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What is a disadvantage of specialisation ? (pg 10)
Specialisation can lead to inflexibility making it harder for workers to find new work.
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What is interest rate ? (pg 11)
The price of borrowed money.
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Why do interest rates change ? (pg 11)
They change because banks, building societies and other financial institutions are linked to the Bank of England and change basted on the base rate set by the Bank of England's Monetary Policy Committee (MPC).
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What are the impacts that interest rates have on businesses and consumers if the increase ? (pg 11)
Businesses - Less likely to borrow money to expand and may face falling demand Consumers - Less likely to borrow money for lager items (e.g. cars) and credit card spending is reduced.
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What are the impacts that interest rates have on businesses and consumers if the decrease ? (pg 11)
Businesses - Investment may increase and new business encouraged to start up Comsumers - Spending may increase especially with credit cards.
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What are exchange rates ? (pg 12)
The price of one currency expressed in terms of another (e.g. £1.00 = $1.50)
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What is it called when exchange rates go down ? (pg 12)
Depreciation
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What is it called when exchange rater go up ? (pg 12)
Appreciation
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How will a weaker pound affect businesses that export goods ?
They will become more competitive
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How will a stronger pound affect businesses that import goods ?
Their costs will fall, increasi
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Other cards in this set

Card 2

Front

What is an advantage of division of labour ? (pg 10)

Back

The workplace becomes more productive and profiitable.

Card 3

Front

What is a disadvantage of division of labour ? (pg 10)

Back

Preview of the front of card 3

Card 4

Front

What is specialisation ? (pg 10)

Back

Preview of the front of card 4

Card 5

Front

What is an advantage of specialisation ? (pg 10)

Back

Preview of the front of card 5
View more cards

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