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Economics: Unit 1 - Coggle Diagram
Economics: Unit 1
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Factors of production: The factors, which when combined, result into goods
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Enterprise: The risk taking ability of a person, who combines factors of production to produce goods
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Land: The natural resources and the space needed for production. EG: water, wood etc
Mobility of land: geographically immobile, whereas occupationally mobile
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PPF:
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The shape of the PPF is downwards sloping. and concave, because when we shift production to another product, we derive the resources from the current product production
Goods: These are the things that are produced to be given to the consumers, and are tangible, I.E they can be physically seen and touched. EG: Clothes, pencils
Resources: These are the things through which something of utility can be obtained. These are used to make goods.
Economic goods: These have an opportunity cost attached to them. We have to pay for these, as they are limited in supply.
Free goods: Unlimited in supply and without any opportunity cost. We don't have to pay anything for these.
The economic problem: When we have unlimited wants and only limited resources to fulfill these wants
Wants: The things that we desire to have. We can live without wants. EG: new phone, new pen
Needs: Things that are essential for survival. EG: food, water etc
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Services: These are non tangible. No types of good are made here, instead, these are known as goods provided in the form of help. EG: education, entertainment
Supply of entrepreneurs affected by: 1. Reduction in government regulations 2. education system 3. Lower taxes on firm's profits