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economics and business - Coggle Diagram

- - - - Land – Natural resources such as coal and water
        
        Labour – Human resources such as workers
        
        Capital – Manufactured resources such as equipment
        
        Entrepreneurship – Management resources such as the skills or talent required to bring the resources together.
  - - - In order to make a good economic decision, we must consider our options
      - In addition to consumer decisions, we must make the following economic decisions:
      - Financial choices
      - Business decisions
      - Employment decisions
      - Legal decisions
  - - - The exchange of goods and service among buyers and sellers is referred to as a market
      - We often rely on price in order to determine how much we are able t produce and consume
      - When the cost of producing or obtaining a particular resource is high, not everyone will be able to obtain it
  - - - Economists measure how well an economy is doing (known as its economic performance) using a wide variety of methods
      - Some key indicators of economic performance include:
      - Gross domestic product (GDP) – total value of goods and services produced in a country
      - Inflation – the general increase in prices of goods and services
      - Unemployment rate – the percentage of people who are unemployed out of all people who are able to work.
- - - - Eg. Budgetary policy - government income and expenditure
    - - Eg. Governments opening up markets for free trade or removing regulations and rules for some areas of the economy
- - - - the unemployment which exists in any economy due to people being in the process of moving from one job to another.
    - - Cyclical unemployment is a type of unemployment which is related to the cyclical trends in the industry or the business cycle. ... Cyclical unemployment is directly related to the macro-economic situation in the economy. It would rise at a time of recession, while reduce when the economy starts recovering.
    - - unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
    - - seasonal unemployment occurs when people are unemployed at particular times of the year when demand for labour is lower than usual.
- - - - Not all consumers are interested in paying the lowest price for an item
      - Price is sometimes associated with the quality of the product
      - if prices are too low, consumers become suspicious of its qualit
  - - - Credit is an agreement where money is lent to a borrower and must re repaid at a later date (usually with interest).
      - Availability refers to how easy it is to borrow
      - Credit cards are an example
      - Spending too much on credit can lead to debt that is difficult to repay. One of the most common reasons for bankruptcy.
  - - - a company's marketing methods can influence a consumers decision to buy
      - conveys the value of goods or services
  - - - As we age we have different needs
      - Marketers may specifically target men or women to buy their product
  - - - items that save the consumer time are easier to use are often preferred
      - Eg. ready-made meals have experienced a 4% annual growth other the last five year with revenue from the read-made meal sector worth around$900 million each year in Australia.
  - - - ethics are standards that provide guidance on what is considered right and wrong
      - many consumers wish to purchase products that have produced in a way that is consistent with their beliefs
      - issues to take into consideration
      - Animal rights (cruelty, testing on animals), the environment (pollution, recycling), human rights (fair wages, fair working conditions)