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Microeconomics

Stakeholder Definition

Stakeholder Definition

A stakeholder is an individual or entity that has an interest in a business because its decisions affect them. For instance, an employee is a stakeholder as their wages are dependent on how successful the company is.

Consumer Surplus Definition

Consumer Surplus Definition and Example

A consumer surplus is defined as the gap between what consumers are able and willing to pay, and the actual price paid. In other words, you may be willing to spend $5 on a Dunkin’ Donut, but you only pay $3 for it.

Outsourcing Definition

Outsourcing Definition

Outsourcing is where a company hires an external firm to conduct certain aspects of its business. In other words, one business hires another to operate a certain part of its operations.

bird flying through the sky to represent laissez-faire economics

Laissez-faire economics: What is Laissez Faire

Laissez-faire economics: What is laissez faire and what are the benefits Laissez-faire economics is characterised by the absence of government. Not its existence, but in its economic involvement between parties. Examples include: regulations,subsidies, tariffs, quotas, and other government-granted privileges.  Origins of Laissez-faire Economics By definition, laissez-faire translates to ‘let do’. Its believed to have originated in 18th century France, under …

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free market with people buying and selling

Why Free Markets are Important

According to the Collins Dictionary, a free market is an economic system that allows supply and demand to regulate prices, wages, etc, rather than government policy. To be defined as a free market, government must not be involved at any point during the exchange. This means that there is no government intervention, whether in the form of subsidies, tariffs and quotas, or regulation.