An individual or group of people who have an interest in a business and what it does
An individual who has bought shares in the business
Question 2
Question
What is the private sector?
Answer
A business that is owned by one/a couple of people and is usually a family business. Only family and friends can buy shares of the business
Businesses that are owned by by a private individual (a member of the public)
Question 3
Question
What is the public sector?
Answer
Businesses that are owned and controlled by the government on behalf of its citizens. They are funded by the government usually through money raised through taxes
Businesses that are owned by shareholders and can be bought on the stock market
Question 4
Question
What is privatisation?
Answer
This is when a company that is owned by a private individual is put on the stock market for shareholders to buy.
This is when the government used to own businesses such as gas,water,electricity etc that were therefore in the public sector but were sold back to the private sector
Question 5
Question
What is the primary sector?
Answer
Companies that are owned by the the government
Companies and people working to extract raw materials from the earth
Question 6
Question
What is the secondary sector?
Answer
Businesses that are owned by a more than one/ a group of individuals
Businesses that turn raw materials into finished, processed & probably packaged products
Question 7
Question
What is the tertiary sector?
Answer
Companies and people who provide services either to the public or other businesses
Companies and people working to extract raw materials from the earth
Question 8
Question
What is supply?
Answer
The quantity of a product consumers are willing and able to purchase at any price level
The quantity that a supplier of a products is willing and able to supply at each level
Question 9
Question
Why does price affect supply?
Answer
If prices are low then supply is less as it is less profitable
If prices are high then supply is more likely as more profit will be made
Question 10
Question
Why does cost affect supply?
Answer
As costs become higher there will be a rise in supply as the firm will want to make more money to cover them
As costs become cheaper, there will be a rise in supply as the firm will be able to produce more from its budget
Question 11
Question
How do taxes affect supply?
Answer
An increase in taxes means an increase in the businesses costs so therefore a decrease in supply
An increase in taxes means an increase in the businesses costs so therefore a increase in supply
Question 12
Question
How do government subsidies affect supply?
Answer
If the government give businesses a payment for every unit supplied then the business is likely to increase supply
If the government give businesses a payment for every unit supplied then the business is likely to decrease supply
Question 13
Question
What happens to the supply curve when supply increases?
Answer
it moves to the right
it moves to the left
Question 14
Question
What happens to the supply curve when supply decreases?
Answer
Curve moves to the right
Curve moves to the left
Question 15
Question
What is demand?
Answer
The quantity that a supplier is willing and able to supply at each price
The quantity of a product consumers are willing and able to purchase at any price level
Question 16
Question
How does price affect demand?
Answer
If price goes down then demand will decrease
If price goes up then demand will decrease
Question 17
Question
How will substitute products affect demand?
Answer
If substitute prices decrease then demand for your product will decrease
If substitute prices decrease then demand for your product will increase
Question 18
Question
How will complimentary products affect demand?
Answer
If complimentary products prices increase then demand for your product decreases
I complimentary products prices increase then demand for your product will increase
Question 19
Question
How will income affect demand?
Answer
If your income increases then demand will decrease
If your income increases then demand will increase
Question 20
Question
How will promotion affect demand?
Answer
If the amount of promotion increases then demand will increase
If the amount of promotion decreases then demand will increase
Question 21
Question
How does taste & fashion affect demand?
Answer
If a product is in fashion then demand will decrease
If a product is in fashion then demand will increase
Question 22
Question
How does wealth affect demand?
Answer
If a person has higher wealth then they're will be higher demand
If a person has higher wealth then they're will be lower demand
Question 23
Question
What is excess demand?
Answer
Where the quantity demanded of a product is greater than the quantity supplied at a given price
When the quantity supplied of a product is greater then the quantity demanded at a given price.
Question 24
Question
What is excess supply?
Answer
When the quantity supplied of a product is greater than the quantity demanded at a given price
When the quantity demanded of a product is greater than the quantity supplied at a given price