The Economic and Business Environment

2. goods and services purchased by local consumers from overseas businesses
3. goods and services sold by local businesses to overseas consumers
5. states that the quantity of a good or service supplied varies directly with price
7. an individual who creates a new business, bearing most of the risks and enjoying most of the rewards.
8. a severe contraction in the level of economic activity resulting in many business failures, high and sustained level
11. states that the quantity of a good or service demanded varies inversely to price
13. cycle the cyclical fluctuations in the general level of economic activity
15. the price that must be paid in order to use someone else’s money
17. either adding a new product to an existing product line, or significantly improving an existing product or process
19. the point at which the demand and supply curves intersect

1. a series of events in which a rapid increase in business activity in the economy is followed by a rapid decrease in business
4. a relatively mild contraction in the level of economic activity resulting in reduced spending, rising unemployment and a slow
6. the interaction of the forces of demand and supply that determines the price of a good or service
9. the buying and selling of labour
10. the use of money to purchase equipment or premises for the establishment of a new business or the expansion of an existing business
12. when businesses consider the interests of stakeholders, society and the environment when making economic and business decisions
13. the swapping or exchanging of one good for another
14. a general rise in prices across all sectors of the economy, causing money to lose its value
16. all activities undertaken for the purpose of production, distribution and consumption of goods and services in a region or country
18. the process that sees people, goods, money and ideas moving around the world faster and more cheaply than before