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


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