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Definition section 1 economic chap1-5 (Chap 2 (Geographical mobility…
Definition section 1 economic chap1-5
Chapter 1
Basic Economic Problem is how best to allocate scare resources in order to satisfy people's unlimited needs and wants.
Economic agents are households, firms that operate in the private sector of an economy and government.
Private sector refers to economic activity of private individuals and firms.
Public Sector refers to economic activity directly involving the government, such as the provision of state education
Goods are physical items such as tables, cars,..
Services are non-physical items such as haircuts, bus journey
Needs are goods and services that are essential for survival.
Wants are goods and services that are not necessary or survival
Economic goods are those which are limited in supply
Free Goods are goods which are unlimited in supply such as air and seawater.
Chapter 3:
Opportunity cost is the cost of the next best opportunity forgone when making a decision.
Chap 2
Geographical mobility refers to the extent to which labor is willing and able to move to different locations for employment purposes
Occupational mobility: refers to the extent to which labour is able to move between jobs
Factor of production: refers to the rss required to produce a good or service, namely land, labor, capital and enterprise.
Chapter 4
The production curve (PPC) represents the maximum combination of goods and services which can be produced in an economy
The PPC diagram is a graphical representation of the maximum combination of the amounts of goods and services that can be produced in an economy, per period of time