Flashcards
Unit 5 Section 1
Cards in this deck (13)
- 1SCARCITYResources are limited in supply, e.g. raw materials, time.
- 2SATISFACTIONThe enjoyment received when consuming a product or service (or resources).
- 3OPPORTUNITY COSTThe next best alternative that wasn’t chosen. This should be given a £ value so it can be compared to the possibility that was chosen.
- 4TRADE - OFFwhere the selection of one choice results in the loss of another
- 5REVENUEThe money earned from selling products and services. It is calculated by multiplying the selling price by the quantity sold.
- 6PRICE SENSITIVITYHow people will respond to a change in price. This is mainly determined by the number of alternatives people have. If demand is price sensitive then firms should choose a low cost strategy as the revenue gained is higher than the revenue lost.
- 7SUBSTITUTESomething that is an alternative for something.
- 8NECESSITYA good or service that a consumer views as essential.
- 9DIVIDENDSThe payment made to shareholders from the profits of a company.
- 10CONFLICT OF INTERESTWhere different groups of stakeholders each have a different perspective on an issue eg pressure groups and shareholders
- 11EXTERNALITIESThe side-effects of a decision on other people outside of the decision making process. These effects could be positive eg jobs or negative eg pollution.
- 12NEGATIVE EXTERNALITIESThese are costs that other people face due to the decisions of others that they aren’t compensated for eg pollution and ill health. These are often unintentional
- 13POSITIVE EXTERNALITIESThese are benefits that people receive as a result of other’s decision that they have not paid for eg improved infrastructure and jobs. These are also often unintentional
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- Revision of key terms im not sure of in Unit 5 Section 1
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- Jack Sharp
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