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MICROECONOMICS - Coggle Diagram
MICROECONOMICS
TYPES OF ECONOMIC SYSTEM
SOCIALISM
Public ownership of resources.
Central planning authority.
Price mechanism of lesser importance.
Central control and ownership.
MIXED ECONOMY
Public and private ownership of resources.
Price mechanism and economic plans in making decisions.
Government helps to control income disparity.
Government intervention in the economy.
Co-operation between the government, public and business sectors.
Government control of monopolies.
CAPITALISM
CHARACTERISTICS
Private ownership of resources.
Freedom of enterprise and choice.
Consumers’ sovereignty.
Competition.
Very minimal Government intervention.
Price system.
PRODUCTION POSSIBILITIES CURVE (PPC)
DEFINITION
The PPC shows the various possible combinations of goods and services produced within a specified time period with all its resources fully and efficiently employed.
FACTORS AFFECTING SHIFT OF PPC
Economic Growth
Population
Improvements in Technology
SHAPE OF PPC
CONVEX - Decreasing Opportunity Cost
LINEAR - Constant Opportunity Cost
CONCAVE - Increasing Opportunity Cost