22

11

44

3355

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