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13 Cards in this Set
- Front
- Back
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What is money and what is its functions? |
Money is wildly accepted or used to exchange for goods. Something is money if it is SCARCE, had ACCEPTABILITY, PORTABILITY, DURABILITY, DIVISIBLE as for example, a car could cost thousands whilst a peice of fruit could cost 1 dollar- yet a dollar could be split up. The functions of money are: -as a medium of exchange: money is generally excepted -as a unit of account: the price of an item can be measured in terms of how many units of currency it is. -As a store of value: you can save money because it keeps its value. Saving enables money for the future. -As a standard for deferred payments: borrowers are able to borrow money and pay it back at a future date |
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What is a commercial bank and what is its main activities |
Commercial banks provide a sad place to keep money and will also lend money. Sometimes called a retail bank. -KEEPS MONEY SAFE -LENDING: through loans, credit cards, overdraft (taking out more money than you have), mortgages |
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What is a central bank and what is its function? |
A central bank is a bank whose job it is to supervise the banking system in the domestic economy- in England this is the Bank of England. The central bank holds regular meetings with senior officials from other banks to outline e policies of lending: too much spending leads to rising prices so banks are asked to reduce lending. To little spending leads to a recession so banks are requested to lend more. Commercial banks also: print notes and mint coins, sets interest rates, acts as a lender of last resort to a bank who needs cash in a hurry, sets interest rates (commercial banks always set interest rates at a little higher than the central banks, acts as banker for the commercial banks and for the government, helps government to borrow miney |
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What does the stock exchange do and what is its functions? |
The stock exchange is an organisation that help companies to sell their shares to people and other organisations that want to buy them. -helps public companies to raise capital |
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What are the wage factors for choice of occupation? |
-BASIC PAY- the amount and employee will be paid without any additional increments -EARNINGS- the total amount an employee will be paid when additional payments are added -OVERTIME- hours worked in addition to the basic contracted numbers of hours, it will be paid at a higher rate. - a BONUS-used as an incentive to persuade employees to work harder or longer -COMMISSION- payment used as a percentage of the sales a salesperson make. |
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What are the non-wage factors of choice or occupation? |
-JOB SATISFACTION- many people are prepared to work for less if they enjoy work more -CAREER PROSPECT- many people work in occupation where there is opportunity for promotion -WORK BENEFITS- these are incentives such as payment of school fees, company car, subsidised company products |
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What is derived demand? |
Derived demand is when there is a demand for something because of the end product. For example demand for labour is described as derived demand because it is wanted to produce end products desired by customers. |
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What is a trade union and what are some of its aims? |
A trade union is an association of employees formed to protect and promote the interests of its members. They are formed, financed and run by their members who pay an annual subscription. They try to influence some of the decisions made by the owners and managers of businesses. Its aims include: shorter working hours/ better working conditions/ health and safety/ better pay. |
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What are the benefits to individuals of a trade union? |
-knowing you are part of a group that represents you and fellow workers -belonging to a body that negotiates better terms and conditions for you - direct benefits (sickness benefits) -supports members if there is a grievance (if a member feels like they have been treated badly) -direct action to support members |
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What is a trade unions impact on the economy? |
In some countries, workers representatives are part of company decision-making. In contrast, unions may call frequent strikes which can lead to unemployment and disruption. |
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What is specialisation and division of labour? |
Specialisation involves concentrating on a particular task. For example a maths teacher. If a person and ressources are concentrated on things that they do relatively well, then usually everyone benefits. Specialisation results to an increase in production. Division of labour is the principle of specialisation created by Adam Smith. |
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What is specialisation and division of labour? |
Specialisation involves concentrating on a particular task. For example a maths teacher. If a person and ressources are concentrated on things that they do relatively well, then usually everyone benefits. Specialisation results to an increase in production. Division of labour is the principle of specialisation created by Adam Smith. |
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What are the advantages and disadvantages of division of labour? |
Advantages: -increase in skill/- time saving/- use of supporting technology/- higher earnings. Disadvantages: -dependency/- unemployment/- boredom/- over concentration (people can not develop other useful skills) |
