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Economics - Coggle Diagram
Economics
Ten Principles of Economics
People face trade-offs
Efficiency
Equity
The cost of something is what you give up to get it
Opportunity cost
Incentives
Rational people think at the margin
Marginal changes
People respond to incentives
Trade can make everyone better off
Markets are usually a good way to organize economic activity
Market economy
Invisible hand
Governments can sometimes improve market outcomes
Property right
Market failure
Externality
Market power
Country's standard of living depend on ability to produce goods and services
Productivity
Prices rise when government prints too much money
Inflation
Society faces a short-run trade-off between inflation and unemployement
Specialization and Trade
Comparative Advantage
Absolute Advantage
Adam Smith
David Ricardo
Economic Models
Circular-flow program
Firms
Households
Markets for Goods and Services
Markets for Factors of Production
Factors of Production
Production possibilities frontier
Efficiency
Trade-offs
Opportunity cost
Economic growth