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Economy - Coggle Diagram
Economy
Stock Market
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Income stock
Pays higher than average dividends, ex. utility stock
Growth stock
Less than 30% of earnings are paid out as dividends,
with rest reinvested in research & development
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Normative Analysis
subjective, non-testable item
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Positive Analysis
an objective, testable statement
“average income is $30,000”
Law of demand
The quantity of a good or service demanded varies
inversely with its price, ceteris paribus
As price (P) falls, quantity demanded (QD) increases (and
vice versa)