Definitions
Buying and selling goods and services (T)
Trade
Are services tangible or intangible?
Intangible. They are activities that other people or businesses do for you.
What is the privatisation?
When a business or service that was owned and run by the government is sold to private individuals or companies.
An enterprise sets up a business hoping to make a profit.
GDP (Gross Domestic Product)
Prodotto Interno Lordo (PIL)
Situation where people don't have a job (u)
Unemployment
What are the basic needs of human beings? List at least 3.
Food, water, clothing and shelter.
What is the added value?
When the selling price of a product is higher than the cost of the materials, labor, marketing and all other inputs used to make it. The difference between the cost and the price is called added value.
A pair of shoes, a packet of buiscuits, and a fridge are all non-durable consumer goods.
A fridge is considered a durable consumer good.
GNP (Gross National Product)
PNL (Prodotto Nazionale Lordo)
We talk about.... (d) when there's a reduction of industrial activity
Deindustrialisation
In a planned economy who decides how the factors of production are used?
The government, like in communist countries (e.g. China), decides who owns the business, what products should be produced and in what quantity, who should be emplyed and how much they should be paid.
What is the supply chain?
It's a network of individuals, businesses, resources and technology involved in producing a product and distributing it to the end user.
In a free-market economy, all resources are owned by the government so that private companies can feel safe to trade in a controlled and non competitive market.
In a free-market economy, resources are owned by private individuals and companies, and they trade in a competitive market with little or no government control.
End user
Utente finale: the person who finally uses a product or service, even if they did not buy it directly.
A period of negative economic growth (r)
Recession
Hairdressers, police officers, and sales assistants are all related to which industry?
Tertiary.
What is the inflation?
It's a general increase in prices over time in an economy. As prices rise, money loses its value and people won't buy as many goods as before. Price increases lead to higher wage demands as people try to maintain their living standards. The value of savings is reduced. Consumers on fixed incomes (e.g. pensioners) are disadvantaged.
An economic DREPRESSION is a RECESSION that lasts for years, like the Great Depression of 1929.
Manufacturer
Produttore: A company or a person that makes products, usually in large numbers, to sell them.
Primary industries
What do we call buying goods or services from a foreign country? And selling goods and services to a foreign country?
Import trade and export trade.
What are quinary industries?
They involve top-level decision-making and leadership. It is about creating policies, and advanced services like education, health care, research, culture and government. People who work in the quinary industry are often referred to as "golden collar" professionals (like senior business executives and government officials).
The funds, machinery, tools and buildings necessary to produce goods and services is called "labour".
It's called CAPITAL.The LABOUR is the work done by people.
Shareholder
Azionista: a person or a company that owns shares in a business. They can get part of the profits (dividends) and vote in company decisions.