Business Gcse Edexcel Unit 1.5 (Lsa Lfi)

Front 1

Demand

Back 1

The quantity customers are willing to buy at any given price.

Front 2

Supply

Back 2

The amount businesses are willing to supply at any given price.

Front 3

Shortage

Back 3

When the demand exceeds the supply.

Front 4

Surplus

Back 4

When the supply exceeds the demand.

Front 5

Commodities

Back 5

Raw materials such as coal, oil, copper, wheat etc. Hard to differentiate on quality.

Front 6

Interest Rates

Back 6

The % reward for saving money and the % charged for borrowing.

Front 7

Bank of England

Back 7

Responsible for setting interest rates.

Front 8

Interest Rates Increases

Back 8

This situation means people borrow less money, probably spend less and are more inclined to save.

Front 9

Interest Rate Decreases

Back 9

This situation means people are more likely to borrow money, probably spend more and are less inclined to save.

Front 10

Exchange Rates

Back 10

This expresses one currency in terms of another eg £1 = $1.60.

Front 11

Exports

Back 11

What UK goods sold abroad are called.

Front 12

Imports

Back 12

What goods purchased by the UK from other countries are called.

Front 13

SPICED

Back 13

Strong Pound Imports Cheap Exports Dear

(Strong sounds good but it means UK businesses struggle)

Front 14

WPIDEC

Not too catchy!

Back 14

Weak Pound Imports Dear Exports Cheap

(Weak sounds worrying but it means UK businesses do well as their goods look the best price).

Front 15

Business Cycle

Back 15

The changes in economic activity over a period of time, generally shown by a diagram.

Front 16

The Economy

Back 16

All the economic activity carried out by people and businesses in a country.

Front 17

Recession

Back 17

When the economy is not growing and businesses start to fail, with people losing their jobs.

(It's defined by 2 quarters of negative growth).

Front 18

Boom

Back 18

When the economy is experiencing high levels of economic growth.

Front 19

Stakeholders

Back 19

People who have an interest in a business or are affected by its activities.

Front 20

Primary Stakeholder

Back 20

People who have a direct impact on business success eg owners,employees, customers

Front 21

Secondary Stakeholder

Back 21

People who see themselves as stakeholders but the business mightnot eg pressure groups, local residents