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Economics - Coggle Diagram
Economics
Factors of Production
Labor
Capital
human capital
acquired knowledge and skills
physical capital
objects created to make the goods/services
Land
trade off
giving up one good thing to get an even better thing
Needs
something essential to us
want
something we desire but not essential to survival
services
actions and activities a person preforms
goods
physical objects that somebody produces
scarcity
there are limited resources to provide goods and services for unlimited wants
shortage
when consumers want/need more of a good/service then the producers have made
marginal benefit
benefit of adding extra unit
opportunity cost
most desirable loss in a trade-off
thinking at the margin
the process of deciding whether to use an extra resource
cost/benefit analysis
a decision-making process where you compare what you win and lose
marginal cost
cost of adding an extra unit
entrepreneur
somebody who creates a business and no matter the risks
underutilization
the use of fewer resources than the economy is capable of using.
