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economics micro - Coggle Diagram

- - - - needs are those things that are required to mantain a sufficient survival
    - - those things desired but not essential to survive
  - - - what goods and services should be produced
      - how should these goods and services be produced
      - who should these goods and services be produced for
  - - - for consumers this will taken into account the price of the god
      - another term for satisfatcion gained from consumption is utility
  - - - impact of choices on economic objectives such as employment and growth - eg higher or lower rate of employment
    - - impact of economic choices on society - so if majority of hosueholds will have decent standard of living
    - - impact of econ choices on enviro eg pollution
- - - - primary sector includes those activities that are related to natural resouces
      - these atcivities include fishing, mining and forestry
      - start of chain production
    - - includes those activities relating to the manufacturing of ntural resources taken from the primary sector
        
        eg cars energy and construction industry
        
        production process
        
        secondary sector is meant to add value to the raw materials extracted
    - - those activities that provide a service, this includes banking finance education and toutism
  - - - factor markets are those where factor inputs are bought and sold
        
        this allows for the exchange of the factors of production
      - households sell theirfatcors of production for the reward of wages
  - - - specific tasksa ere allocated to each member of staff
    - - technology allows firms to specialsie, increasing productivity
      - workers specialsie in specific tasks to gaine xpertise, improvve quality and increase production
        
        low skilled workers will find repetitive jobs boring
        
        firms will have to take this into account when setting specific work
        however there is a greater supply of low skilled workers meaning that they can be replaced easily
        
        highly skilled workers can become experts in their field
        
        this can be motivational as they concentrate on areas that they are interested in
        as experts they will recieve high pay,good quality and working conditions and will be highly respeced
      - workers can specialise through completing the same tasks again and again
        
        as they do this tehy reduce the mistake s that they make
        
        this leads to higher quality and greater productivity
        
        this improves reputation of individual/firm whillst lowering unit costs
    - - costs
        
        boredom due to monotomy of doing the same task
        
        less flexible workforce
        
        demotivated workforce
        
        risk of proces sbecoming automated
      - benefits
        
        increased productivity
        
        lower unit costs
        
        greater consistency
        
        expert workers
    - - benefits
        
        increased producitivy due to specialisation in specific field
        
        significan source of income
        
        signif source of employment
        
        rep of area
      - costs
        
        can become too reliant on demand for products
        
        less flexible work force
        
        open to ocmp from other regions making the same product
      - by specialising, economic agents can imrpove quality and lower unit costs
- - - - it is directly linked to the demand for the product being made
  - - - increases the supply of labour as more people come into country seeking employment
      - often willing to work for min wage
    - - high income tax and benefits act as a detterent to labour
    - - increase in the minimum wage may encourage more people to supply their services
    - - improve pay and working conditins attracting more people to supply labour
  - - - elasticity of supply - inelastic workers will earn higher wages
      - trade unions will use collective bargaining to increase te wages of members
      - the national min wage will affect wgaes
      - dif groups of workers will earn dif wages due to the value of their human capital
- - - - gov revenue is income recieved from a variety of sources including taxes
      - gov expenditure - how gov uses its money to meet its role
      - economic policy is undertaken by governemnt to meet its main ecobomic objectives
  - - - consumers but off producers, allowing them to make a profit
  - - - natural resources eg agriculture fihsing
    - - skills available and characteristsics of workforce
    - - investment in manmade aids to production
    - - risk undertaken by entrepeneur by transforming otehr factors of production into output
    - - ther eward for capital is intrest
        
        this is the payment to an economic agent for borrowing money in order to but premesis machinary and other equipment
- - - - when incomes rise so does demand and vice versa
      - more disposable income is increased spending
    - - if price of subsititure good falls leads to fall in demand
      - if price of complementary good falls demand will increase
    - - tastes are constantly changing
  - - - more subs available the higher the ped
    - - firms spend time and money building up their brand image- by creating brand loyalty firms know that consumers are willing to pay more for their product
    - - if consumer incomes are higher then the issue of price becoems less and elss important to the consuemr so its easier for firms to change prices
  - - - this will lead to a rise in demand and rise in revenue
      - producers will have to ensure unit costs are low enough to cver price
      - consumers will benefit from lower prices
    - - producers should raise pricdes