8081776
Description
Flashcards by Harry Lewis, updated more than 1 year ago
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Created by Harry Lewis
over 7 years ago
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| Question | Answer |
| Scarce resource | Anything useful which is not available in unlimited quantities |
| Opportunity cost | The best alternative given up when using a scarce resource in one way |
| Trade-off | A balance between two choices, choosing more of one and less of the other rather than making a simple either/or choice |
| Positive statement | A statement in economics which is testable as factual or false, normally on the basis of observation and evidence. |
| Normative statement/value judgement | A statement in economics which depends on opinion and judgement, often involving ideas on what should be done |
| Profit | A surplus of sales revenue over costs |
| Entrepeneur | An individual who sets up in business, accepting the risks involved, taking the decisions about what to produce and how, and working out how to market the product |
| Satisficing | Reaching a good enough profit level without maximising |
| Survival | A possible business objective to keep the business going |
| Profit maximisation | A possible business objective to maximise profits, which can be either short-term or long-term |
| Sales maximisation | A possible business objective to maximise sales, which can be either short-term or long-term |
| Market share | The proportion of a specific market that is supplied by one business. Calculated as total sales by the business as a percentage of total sales in the market. |
| Return on investment | Owners and others who provide finance might prioritise this; it would come from interest on loans or dividends for shareholders |
| Cost efficiency | An objective for some businesses that helps them to compete effectively. |
| Social objectives | Business objectives such as employee welfare, sustainability and ethics. |
| Customer satisfaction | A business objective that ensures repeat purchases, or an outcome of fair and responsible business behaviour that secures a good reputation for the business concerned. It may be pursued in order to ensure good profits or as a matter of principle based on concern for the customer. |
| Economic agents | A term which includes all those groups of people and organisations that are involved in economic activity and take decisions that affect how resources are used. |
| Stakeholder | Anyone with an interest in a business, or feeling an impact from it |
| Shareholders | The legal owners of a business. They may have helped to set up the business or bought shares on the stock exchange. |
| Suppliers | Firms from which a business can buy the material inputs or services that are needed in the production process |
| Creditors | Firms or individuals to which a business owes money |
| Corporate social responsibility | A business behaving in an ethical way and accepting responsibility for its effects on all its stakeholders, including the wider community and the environment |
| Tax evasion | Illegally failing to pay taxes that are due |
| Tax avoidance | Finding legal ways to reduce tax liability |
| Transnational corporations/multinational corporations | Businesses with operations in more than one country |
| Zero-hours contract | Where an employee works only when they are needed, often at short notice. Their pay depends on hours worked. Some contracts oblige workers to take shifts that are offered, others don't. |
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