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economics and business mindmap - Coggle Diagram
economics and business mindmap
NEED
a need is something that is necessary for our survival
e.g. food, water, shelter, oxygen
WANT
something that is not necessary for our survival, but makes our lives easier or ore enjoyable
e.g. jewelry, games, movies, restaurants
6 KEY ASPECTS
making choices
interdependence and trade
allocation and markets
scarcity
specialisation and trade - Australia specialises in mining of substances like iron-ore, so we export it and trade it to other parts of the world
economic performance and living standards
FACTORS OF PRODUCTION
land - the land needed to start a business (e.g shop needed to start a coffee shop)
labor - people needed to make/produce the item (e.g baker needed to produce bread)
entrepreneurship - skills needed to make the business successful (e.g. to start a cafe, you need baristas)
capital - things needed to start production (e.g. tractor needed to farm)
CIRCULAR FLOW MODEL
INDIVIDUALS BUISNESSES
Labour
Income
expenditure
goods + services
CONSUMERS AND PRODUCERS
consumer - the person who purchases the good or service e.g. if i go to the shop and a buy apples, i am a consumer)
producer - someone who provides the good or service (baker - bread)
GOODS AND SERVICES
good - tangible items bought by the consumer (fridge)
service - intangible thing purchased by the consumer (haircut)
TYPES OF BUSINESSES
Agriculture – wheat
industrial – car manufacturer
service – electrician
SUPPLY AND DEMAND
demand - the demand of a good/service (how much people want of it)
equilibrium - where the supply and the demand of a product or service meet and are the same
supply - supply of a good or service (how much of it is produced)
quantity supply- the x axis on a supply and demand graph
price - the y axis on a supply and demand graph
MINIMUM WAGE
minimum wage is the minimum amount that workers can be paid, this amount differs in each country. Australia is a country with a very high minimum wage, which means people with little skills can still work and live comfortably
highest - Australia has the highest minimum wage of all countries, the minimum is $19.84 per hour, which is $753.80 per week in 2020
lowest - Sierra Leone is the country with the lowest minimum wage, which is $0.3 per hour.
DEMOGRAPHICS
before a business decides on a location, they must figure out what types of people are in the area, for example your wouldn't put a city beach in a neighbor-hood with predominantly older citizens, rather a coffee shop or a café would do better in areas like that
demographics are analysed and based on things like age, gender, sex, and religion