In audio terms, sensitivity is the minimum amount of input signal required to drive a device to its rated output level. Normally, this specification is associated with amplifiers and microphones, but FM tuners, phono cartridges, and most other types of gear have a sensitivity rating as well. In general, higher sensitivity is better (less input signal required for full output), but there are definitely situations where a device can be TOO sensitive (picture a very sensitive microphone in front of a wound-up Marshall guitar amplifier!) resulting in unwanted distortion.
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