Topic 5.1
- Created by: cheyenne
- Created on: 04-02-18 11:54
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- Topic 5.1
- What is economics?
- The study of how finite resources are allocated to satisfy infinite demand
- Demand and supply impact price.
- If demand goes up price goes up
- if demand goes down price goes down
- if supply goes down price goes up
- if supply goes up price goes down
- Trade off
- where the selection of one choice results in the loss of another
- Oppourtunity cost
- the loss of the next most desired alternative when choosing a particular course of action
- Price sensitivity
- a small change in price leads to a large change in demand
- Price insensitivity
- a large change in price leads to a small change in demand
- Stakeholder
- any person or group with an interest in the performance of a business internal or external
- Dividend
- the % of profit payed to shareholders some shareholders got more ta others
- Externalities
- the effects of an economic desicion on individuals and groups outside who are not directly involved
- What is economics?
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