Hrm 531 Week 2 Individual Assignment

1. Opportunity cost It is the alternative cost of a good or service that we have to sacrifice.

2. Household Consists of people living together who make joint economic decisions daily.

3. Government People with authority who make economic decisions on behalf of the people in that particular country.

4. Income Money that people receive for working or for providing factors of production.

5. Firm Employ factors of production and convert them into goods and services for consumers to buy.

6. Economy It is a system that consists of production, consumption of goods and services, and trade.

7. Base year It is a year that is used to compare prices of goods and services.

8. Consumer Price Index (CPI) Represents the cost of goods and services of an individual

Departmentalisation The basis by which jobs are grouped together.

48. Cross-functional team It is a work team that consists of individuals from different functional departments that work together to achieve a goal.

Week 5

49. Direct taxation It is tax that is directly paid by an individual or an organisation.

50. Interest rate It is a part of a loan that is charged as interest to the borrower.

51. Investment spending Investment spending is done by firms and is injections into the circular flow of spending, income and production.

52. Long run This is a time period where there are no fixed factors of production. Firms are able to alter all their costs.

53. Short run The period of time is not fixed and varies based on the firm’s contracts.

54. Substitutes Goods which can be used instead of other goods.

55. Manager Someone who oversees the work or duties of other people to achieve organisational goals.

56. National accounts Total spending is always equal to total production and income.

57. Direct investment It is all transactions where the investor gains control of the business or company.

58. Budget It is an amount of income that is estimated to be spent.

59. Import tariffs Are taxes that are charged on imported

Fiscal policy The level and composition of government spending and income (property, taxes and borrowings).

65. Foreign sector All institutions and countries outside a country’s border.

66. Recession A period where a country’s GDP took a fall in two successive quarters.

67. Indirect overheads Costs that cannot be traced directly to the products.

68. Direct overheads Cost of expenditure is directly measurable and traceable per unit of output.

69. Step fixed costs Costs which are fixed within certain levels of activity, then exceeds the level and becomes fixed again.

70. Semi-variable costs Costs which are fixed irrespective of the levels of activity, it becomes variable only when there is output.

71. Sunk costs The cost of resources which have been spent.

72. Craft union Consist of workers who are joined together by an association and who have common set of skills.

Week 7

73. Liquidity Whether a business has cash to meet its short-term loans.

74. Utility The degree of satisfaction that a consumer obtains from consuming goods and services.

75. Variables Variables are factors.

76. Stagflation Where the inflation rate is high, the economic growth rate is slowing down and unemployment remains high.

77. Trade restriction Where trade is restricted between