Eco And Busi Revision!

Today I revised Economics and Business Studies as well!

*Economics:

I have read all 10 pages very carefully and I have learnt glossaries.Here are some main glossaries that I wrote without looking at a book(just a little bit...^^):

• Economics:the study of how to allocate scarce resources in the most effective way
• Economic problem:how to allocate scarce resources among the alternative uses
• Household:group of people whose spending decisions are connected
• Micro economics:the study of how house holds and firms make decisions in market
• Macro economics:the study of issues taht affect economies as a whole
• Factor of production:the resource inputs that are available in an economy for the production of goods and services
• Entrepreneur:someone who bears the risks of the business and who organises production.
• Production:the output of goods and services
• Scarcity:not enough resources to meet unlimited wants
• Opportunity cost:the cost of the next best alternative
• Subsidy: a payment by a governing body to encourage the production of consumption of a product
• Productivity:output

*Business Studies:

I revised the "break-even" topic, and here are some formulaes:

1. Break-even=Fix cost/ unit contribution
2. Unit contribution=Selling price - variable cost
3. Profit=Total contribution-Fix cost=Total sales revenue-Total cost
4. Total contribution=Unit contribution*Quantity
5. Total sales revenue=selling price*Quantity
6. Total cost=Fix cost+Variable cost*Quantity

And this is the way to draw break-even diagram in order:

1. Calculate sales revenue
2. Calculate total variable cost
3. Calculate total cost
4. Calculate break even
5. Calculate profit
6. After the calculation start to draw the diagram

*Note*:Always remember do the calculation first then draw a diagram to make your digram more accurate

IF you want to see the video of break even chart is here!