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Y10 ECONS - Coggle Diagram

- - - - The best alternative forgone.
    - - producers would need to decide what to produce in order to earn the most money
      - e.g.if you went swimming for an hour, the opportunity cost would be the time you could've used to study, or call your friends.
  - - - land
        
        natural resources you can use for production
        
        e.g. oil, wood, coal, animals, water
      - capital
        
        The man made resources used in production
        
        e.g. internet, cars, hammers
      - enterprise
        
        when a person has an idea and takes risks to carry them out
        
        Steve jobs ---> decided to invent the Iphone
      - labour
        
        the effort that people contribute to the production of goods and services
        
        e.g. teachers, miners
    - - geographic mobility
        
        level of flexibility and freedom labourers have to move (location) in order to find gainful employment in their field
      - occupational mobility
        
        the ability of labour to switch between different occupations
    - - Labour
        
        Quality: Better education increases quality of workers
        
        Quantity: Higher pay; more people will do more work
      - Capital
        
        Quality: Trade with better products; use different materials
        
        Quantity: Production time reduces; invest to buy more capital
      - Land
        
        Quantity: You can build a building, tall but on a small amount of land
        
        Quality: Refine fuel; crude oil to use it in a better way
  - - - a way to graphically represent opportunity cost
      - it shows a possible output combination for a single entity and two goods
      - the entity could be an individual, a business, a nation, etc.
      - the two goods can be defined specifically or very generally
    - - under: it means that the resources aren't fully used
      - on: maximum use of resources
      - beyond: impossible, as you cant exceed the amount of resources you have
    - - the curve is the potential output
        
        when all resources are used
      - the point is the actual output
        
        what is actually produced, may not involve full use of resources
  - - - The economic problem: unlimited wants exceed finite resources
    - - Free goods
        
        A good that doesn't have an opportunity cost or require any resources to produce it.
      - Economic goods
        
        A good that is scarce in relation to its demand