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MICROECONOMIC, CHARACTERISTICS, CHARATERISTICS - Coggle Diagram
MICROECONOMIC
TYPE OF ECONOMIC SYSTEMS
MIXED ECONOMY
combination of both capitalism and socialism
CHARATERISTIC
government controls income disparity
public and private ownership od resources
price mechanism and economic plans
government control monopolies
government intervention in economy
SOCIALISM
government or central authority made all the economic decisions
CAPITALISM
individuals and sellers make decisions using price system
FACTOR INFLUENCE SHIFT OF PPC
economic growth
improvement of technology
population
SHAPE OF PPC
CONVEX
opportunity cost decrease
CONCAVE
opportunity cost increase
LINEAR
constant opportunity cost
PRODUCTION POSSIBILITIES CURVE (PPC)
ASSUMPTIONS
not change of the state of technology
full employment and full production
amount of resources avaiable are fixied
possible combinations of goods and services produced within a specified time period with all resources fully employed.
CHARACTERISTICS
consumers' sovereignty
competition
freedom of enterprise and choice
minimal government intervention
private ownership resources
CHARATERISTICS
Public ownership of resources
cental control
central planning authority
less using price mechanism