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Economics 1.2 - Coggle Diagram
Economics 1.2
Key Vocab
Sustainability - the ability to be maintained at a given rate
Economic - the best use of resources
Environmental - relating to impact of human activity on the natural world
Social - relating to society and the people within it
Scarce - in short supply
Desired - wished for or intended
Scarce resources - When there are is an insufficient amount of something to satisfy all wants
Economic problem - How to best use the limited resources to satisfy the unlimited wants of people
Economic choice - An option for the use of selected scarce resources
What do the key terms mean?
What are scarce resources?
When there are fewer resources to make goods and services than are desired.
What are unlimited wants?
The desire for everything a consumer would like whether they have the resources to purchase it or not.
What is the difference between needs and wants?
Wants are unlimited and include anything a consumer would like whether they can purchase it or not.
What is meant by opportunity cost?
Something that is given up when making a decision on the use of scarce resources.
How do economic choices affect us all?
What is economic sustainability?
This ensures the most responsible use of scarce resources so that a firm or economy can continue to develop and grow.
Consideration will be given to economic factors such as
C
osts involved in production,
P
rice consumers pay, impact on
U
nemployment and impact on government
S
pending and
T
ax revenue
- CPUST
What is social sustainability?
It considers how economic activity (development or growth) affects quality of life and well-being.
What is environmental sustainability?
Considers how economic activity (development or growth) affects the environment now and into the future
How can we approach the basic economic problem?
What is the basic economic problem?
How to best use the limited resources to satisfy the unlimited wants of consumers:
What should be produced?
How should it be produced?
Whom should it be produced for?
How does the UK approach the basic economic problem?
1. What goods and services should be produced with available resources?
- Most decisions are made based on what consumers are willing and able to buy.
2. How should resources be used most efficiently to produce these goods?
- Producers will mostly determine how goods are to be produced as they look for lowest costs.
3. How should the goods be allocated among the population
- In most instances, goods and services are allocated to consumers who can afford to buy them