Deal with changes in the economy as a whole (sometimes known as the 'macro' economy) and how they affect different businesses.
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Consumer Demand
The levels of spending by consumers in general (not just the demand from one consumer).
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Discretionary Income
A person's income after deducting taxes and fixed payments such as rent and utility bills.
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Economic Climate
The atmosphere surrounding the economy (e.g. 'gloom and doom' or 'optimism and boom').
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Gross Domestic Product (GDP)
The value of all the foods and services produced in a country in a year.
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Real
Changes in money (e.g. wages) excluding the distorting effect of changes in prices. So, a fall in real wages might be that wages are unchanged, but prices have risen.
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Recession
Two or quarters of negative economic growth.
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Legislation
Laws initiated by government, but passed by parliament that relate to business operations and therefore employees, the general public and the environment.
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Cartel
An agreement between producers to control supply and therefore control prices. This is illegal, but not uncommon.
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Laissez-Faire
Literally means 'let it be', implying leaving businesses free to choose their own policies and practices: trusting in the free market.
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Competitive Environment
Involves measuring the directness and toughness of the competition within a market or sector within a market.
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Collusion
When managers from different firms get together to restrict supply and/or raise prices.
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Non-Price Competition
All competitive strategies other than price, such as branding, product design and technological innovation.
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Oligopolies
Markets dominated by a few large companies.
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Predatory Pricing
Pricing low with the deliberate intention of driving a competitor out of business.
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Other cards in this set
Card 2
Front
The levels of spending by consumers in general (not just the demand from one consumer).
Back
Consumer Demand
Card 3
Front
A person's income after deducting taxes and fixed payments such as rent and utility bills.
Back
Card 4
Front
The atmosphere surrounding the economy (e.g. 'gloom and doom' or 'optimism and boom').
Back
Card 5
Front
The value of all the foods and services produced in a country in a year.
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