Unit 1.5 Key Terms

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Commodities
Raw materials such as coal, oil, copper, iron ore, wheat and soya
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Commodity Markets
Where buyers and sellers meet to exchange commodities; often these are international, organised markets, for example, the London Metal Exchange and the New York Mercantile Exchange
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Demand
The amount consumers and willing and able to buy at any given price
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Supply
The amount sellers are willing to offer for sale at any given price
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Shortage
When the demand for a good or service is greater than the supply. When a shortage exists, prices will tend to rise
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Surplus
When the demand for a good or service is less than the available supply. When a surplus exists, prices will tend to fall
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Goods Market
The market for everyday products such as clothes, food, petrol, going to the cinema, a DVD, etc
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Interest Rate
The percentage reward or payment over a period of time that is given to savers or paid by borrowers on savings or loans
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Bank of England
The central bank for the UK. Its role is to monitor the banking system and to be a bank to the banks. It is responsible for setting interest rates in the UK
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Variable Interest Rates
Interest Rates that can change over the lifetime of a loan depending on what is happening to other interest rates in the economy
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Fixed Interest Rates
Interest Rates that stay the same over an agreed period of a loan
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Exchange Rate
The exchange rate is the price of buying a foreign currency. It tells you how much of the foreign currency you will get for every pound or how many pounds you have to give up to acquire a foreign currency
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Export
An export is the sale of a good or service to a foreign buyer that leads to a flow of money into the UK. The foreign buyer will have to change their currency into pounds to complete the purchase
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Import
An import is the purchase of a good or service from a foreign business that leads to a flow of money out of the UK. The UK buyer will have to change pounds into the seller's currency to make the transaction
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Economic Activity
The amount of buying and selling that takes place in a period of time
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The Economy
The economic activity carried out by people and businesses in a country
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Economic Growth
Rises in the rate of economic activity in the economy. It is measured by calculating the value of sales in an economy over a period of time
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Business Cycle
Fluctuations in the level of economic activity over a period of time. Most economies experience times when economic activity is rising and others, when economic activity is slowing
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Recession
A situation when the level of economic growth is negative for two successive quarters
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Stakeholder
An individual or a group which has an interest in and is affected by the activities of a business; stakeholders have an interest in how the business operates and whether or not it is successful
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Other cards in this set

Card 2

Front

Where buyers and sellers meet to exchange commodities; often these are international, organised markets, for example, the London Metal Exchange and the New York Mercantile Exchange

Back

Commodity Markets

Card 3

Front

The amount consumers and willing and able to buy at any given price

Back

Preview of the back of card 3

Card 4

Front

The amount sellers are willing to offer for sale at any given price

Back

Preview of the back of card 4

Card 5

Front

When the demand for a good or service is greater than the supply. When a shortage exists, prices will tend to rise

Back

Preview of the back of card 5
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