business cycle 2014
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Final Topic :Understanding the economic context
Final Topic :Understanding the economic context
AMDG 14.5.14
Starter:Read through your feedback and then complete (in green pen) the task which is best suited to your feedback:1.Explain why demand for wheat will increase if the Chinese become richer2.Explain what a shortage is using the terms ‘supply’ and ‘demand’3.Explain why businesses will not raise their prices when costs go up if they face a lot of competition
AMDG 14.5.14
LOs:1. To be able to name the different
stages of the business cycle2. To be able to decide upon a
suitable business for when the economy is either booming or is in recession
The Business Cycle
GDPGDPGross Domestic ProductGross Domestic Product
Measures the value of all goods and all
services produced in the UK Economy
Measures the value of all goods and all
services produced in the UK Economy
In 2013, this was
£1,502,940,000,000
In 2013, this was
£1,502,940,000,000
Incomes are high ; employment is highIncomes are high ; employment is high
Incomes are low ; employment is lowIncomes are low ; employment is low
Where we are nowWhere we are now
Put the three labels in the right placePut the three labels in the right place
Group A
Meschach & MarceloKelvin & RobertCormac & LorcanJordan & KayCaolan & BrianEoin & ConradGiles & Ruairi
Group B
Adam & VictorAlex & JoelRhys & DavidStefan & FelipeJustice & ReeceJoe & DominikCian & Liam
AMDG 14.5.14
LOs:1. To be able to name the different
stages of the business cycle2. To be able to decide upon a
suitable business for when the economy is either booming or is in recession and to be able to persuade others of your choice
The Business Cycle
1. Which of these three businesses will be NEGATIVELY affected most by the recession:– A pizza restaurant– A local newsagent– A bicycle repair shop
2. Test yourself questions on page 1303. Over to you question 4
Success criteria for answering ALL questions, including the test yourself questions : Reasons are given for answerSome evaluation – “this might not be the case because….” ; “however……” ; “On the other hand……”
Success criteria for answering ALL questions, including the test yourself questions : Reasons are given for answerSome evaluation – “this might not be the case because….” ; “however……” ; “On the other hand……”
Byron Burgers was established in 2007 and has expanded during the recession. It now has 32 branches. 3 reasons why this chain of restaurants in expanding so quickly
It needs more cash to run its restaurants and price of beef is increasing . 3 ways it could improve its cash flow?
Customers typically spend £15. The profit margin is 33%. How much profit do they make if they sell 1,000 per day
Some of their costs are:SalariesIngredientsEnergyRentRates
Which are fixed and which are variable?
link
Old skool interactive whiteboards quizOn the business cycle
Draw the business cycle
Show where UK is on business cycle
2 small businesses that will do well in recession
2 small businesses that will do badly in recession
What will happen to small business’s ability to recruit good
staff in boom years
Apart from redundancies what could a restaurant do to survive
downturn – 2 things
Apart from redundancies what could a restaurant do to survive
downturn – 2 things
Why Business Cycle affect CashFlow
Why Business Cycle affects Profit
Why Business Cycle affects relationship with suppliers