CATEGORY 1: ECONOMIC AGENTS & CIRCULAR FLOW
These economic agents consume goods and services and provide labour in exchange for wages.
What are families (households)?
These people have more income than expenses and are willing to lend their savings.
Who are savers?
This concept refers to companies voluntarily acting in ways that benefit society.
What is Corporate Social Responsibility (CSR)? Give an example.
This personal financing option is usually used to buy a house and has lower interest rates.
What is a mortgage loan?
This is the process by which company managers choose between different alternatives to achieve company objectives.
What is decision-making?
This economic agent produces goods and services and aims to make a profit.
What are companies?
These agents connect savers and debtors and earn money from the difference in interest rates.
What are financial intermediaries?
These are costs caused by companies but paid by society, such as pollution.
What are social costs (negative externalities)?
This type of business financing allows the use of an asset with a purchase option at the end.
What is leasing?
A company changes from plastic straws to eco-friendly straws to reduce pollution and stay profitable. This is an example of a business decision that creates this positive social effect.
What is corporate social transformation through sustainability?
This economic agent redistributes income through taxes and subsidies and provides public services.
What is the public sector?
This financial market trades assets that already exist, such as shares sold on the stock exchange.
What is the secondary market?
The three CSR areas are also known as these three words.
What are Profit, People, and Planet?
This tax is paid by companies on their profits, generally at a rate of 25%.
What is corporate tax?
This type of strategy involves short-term, department-level actions, such as launching an advertising campaign to take advantage of a trend.
What is an operational strategy?
This market is where families sell labour and companies pay wages, rents, or interest.
What is the factor market?
These intermediaries can create money and include private banks and savings banks.
What are banking financial intermediaries?
This CSR area focuses on workers’ rights, fair wages, and community well-being.
What is social responsibility?
This tax is paid by consumers on most products and collected by companies for the State.
What is VAT (Value Added Tax)?
This market failure involves economic booms and recessions over time.
What are economic cycles?
In the circular flow of income, this flow represents the movement of money for goods and factors.
What is the monetary flow?
This type of market is regulated by authorities that control prices or quantities of assets.
What is a regulated financial market?
This voluntary document measures a company’s social assets and liabilities.
What is the social balance sheet?
This concept explains why €1,000 today is worth more than €1,000 in the future. Give an example.
What is the time value of money?
This State function aims to reduce unemployment and stabilize the economy during crises.
What is the stabilizing function of the State?